UK travellers’ overseas ATM withdrawals increase holiday spending

A new survey from First Rate Exchange Services reported that more than half of the UK holidaymakers fail to plan ahead of time how much money they will take to their overseas holiday, resulting in travellers spending far more than their holiday budget through costly ATM withdrawals abroad.

With credit card companies charging £6 for cash withdrawals and with a £5 debit card fee for an average transaction of £108, just a few withdrawals overseas can significantly increase holiday spending. Last year, over £7.8 billion was withdrawn by UK travellers from overseas ATMs, with an estimated £326 million spent on transaction fees alone.

The research survey revealed that most of the Welsh set a budget for their holiday tours, with only two percent responding that they have spent more than their pocket money. In contrast, only 36 per cent of the holidaymakers from the North West had claimed that they have sufficient cash before going for a trip abroad.

According also to the research, tourists from the North East are said to be canny with cash. Almost two-thirds of the surveyed travellers said that they do their homework to find the best offered rates.

Londoners top the survey list as the heaviest users of ATMs overseas, with 22 per cent of the holidaymakers not bringing any cash with them when travelling. Gordon Gourlay from the First Rate Exchange Services, the UK’s leading foreign exchange service provider, said that millions of tourists from London are running the risk of being charged with high transaction fees by withdrawing cash from ATMs abroad.