UK: 1 in 3 feels ‘ripped off’ spending on cards abroad

By Puja Sharma

The study found 31% of adults felt they were overcharged when using plastic overseas while 3.3 million say they have come home to find ‘substantial’ unexpected extra charges for using their credit or debit cards abroad.

Nearly one in three holidaymakers have felt ripped off when using credit or debit cards for spending abroad, new research from UK-based banking, crypto, FX, and investment app Ziglu shows.

The study found 31% of adults felt they were overcharged when using plastic overseas while 3.3 million say they have come home to find ‘substantial’ unexpected extra charges for using their credit or debit cards abroad.

The research by Ziglu, which offers fee-free US dollar and euro accounts enabling tourists and business travelers to spend without being hit by commission charges, found 28% of travelers use debit cards for spending abroad while 22% rely on credit cards.

More than a third (35%) say they withdraw local currency from ATMs despite most UK debit and credit cards being subject to a range of fees in the US and Europe including non-sterling transaction fees and non-sterling purchase fees. Customers converting pounds into dollars or Euros can be charged commission and margins on the exchange rates, as well as receiving uncompetitive exchange rates.

However, around one in five adults (19%) say they are not aware they could face extra charges for using their cards overseas and tourists who take money with them are often not helping themselves either.

Ziglu’s research found one in seven (14%) admit they do not shop around for the best deals on foreign exchange before going overseas. That more than doubles to 29% who do not shop around for the best deals when changing money overseas.

Mark Hipperson, Founder, and CEO of Ziglu said: “With so many people feeling ripped off from using debit and credit cards there is a need for change in how we spend overseas. People who were lucky enough to get away on holiday this year given the current travel situation can be forgiven for not focusing on foreign exchange too much but with minimal effort, they can make substantial savings. The big banks do not make it clear and easy for customers and that is reflected in the high numbers of people who have come home to unexpected charges for simply spending their own money.”

How Ziglu is helping save money overseas

Ziglu’s market-leading fee-free US dollar and Euro accounts are aimed at saving money for tourists, British ex-pats, and business travelers. Customers can open accounts and exchange money from their sterling account instantly and at highly competitive exchange rates, without any spreads, margins, or commission added on.

Customers do not need to carry an additional card as the Ziglu Mastercard debit card automatically takes funds from their US dollar or Euro account without applying any spreads, fees, or commissions – truly spending like a local. Ziglu customers can also make fee-free instant US dollar or Euro payments to other customers.

The firm also offers interest-bearing investment accounts alongside its sterling current account plus a curated selection of cryptocurrencies including Bitcoin, Bitcoin Cash, Cardano, Chainlink, Dogecoin, Ether, and Tezos. Ziglu is regulated by the Financial Conduct Authority, as an Electronic Money Institution, and is also one of the world’s first cryptocurrency platforms to comply with the Anti Money Laundering and Counter-Terrorist Financing standards set by the Financial Action Task Force (FATF), implemented in over 200 jurisdictions. As with any investment, capital is at risk.