Rachel Springall, Finance Expert at Moneyfacts.co.uk, said:

“Consumers may well be overdue a break abroad and decide a last-minute getaway after months of unpredictability due to the Coronavirus pandemic. Some holiday destinations may be more expensive to explore and consumers will need to be savvy and perhaps make a budget for their last-minute trip to avoid an impulsive splurge they may regret later. Using a credit card or debit card abroad may be the easiest way to pay or withdraw cash, but it’s a convenience that can cost depending on the fees charged for each transaction.

“Switching a bank account is simple and using the Current Account Switcher Service, customers can move their account within seven working days. If consumers plan to travel more frequently in the months to come, either for work or leisure, choosing a current account that will not charge for using their debit card abroad could be a wise choice. Starling Bank, Metro Bank and Virgin Money all offer fee-free current accounts which do not charge in Europe for using a debit card, either for a cash withdrawal or retail transaction. However, a typical debit card charges £11.88 when consumers withdraw £250 in cash abroad and £1.38 for an in-store purchase of £50.

“Consumers may prefer to use a credit card for spending abroad, which is understandable as they can easily be cancelled if lost or stolen and spenders are protected under Section 75 of the Consumer Credit Act on purchases between £100 and £30,000 if a service or goods are not provided or damaged. Carrying around cash might be convenient but it is clear to see how quickly a holiday can become a disaster should someone’s hard-earned cash be lost or stolen and getting cash last minute at an airport is unwise due to poorer exchange rates.

“Holidaymakers may be concerned about the cost of their trip as it is expected to rise. Saving money on card usage fees is, therefore, a sensible thing to do and consumers can easily do this by bringing along a cost-effective credit or debit card or even consider a prepaid card. Planning an itinerary on what to do whilst abroad may be routine but so should be setting a budget in light of how the Coronavirus pandemic has impacted the cost of a holiday.”

*Typical debit card example is the HSBC Bank Account, on cash withdrawals, it charges a transaction fee of 2.00% (min £1.75, max £5) and a conversion fee of 2.75% and on purchases, this card charges a conversion fee of 2.75%. **Typical credit card example is the HSBC Rewards Credit Card Mastercard, on cash withdrawals it charges a 2.99% usage fee and a 2.99% / £3.00 cash withdrawal fee and on purchases this card charges a usage fee of 2.99%.