A lack of confidence with foreign currency is seeing the number of people caught out by DCC increasing year-on-year
London, Heathrow, Stansted, Gatwick, Glasgow, East Midlands (PRWEB UK) 9 June 2013
According to a recently published article in The Telegraph, nearly half of British tourists do not know or understand about fees charged when asked to change in to sterling from the local currency. When consumers pay their hotel or restaurant bills or use the cash machine, they are offered a chance to pay in sterling or the local currency which most do but however, they are unaware that they get charged a fee which is imposed by retailers on debit and credit cards. This charge is usually 4 per cent of the value of the purchase and is totally legal.
As only a few people know about this charge, a spokesperson from Caxton FX, a currency exchange company, said more people than ever were being caught out. According to its research, 42pc of Britons are paying over the odds by using “dynamic currency conversion” (DCC), a 13pc increase since 2011. The company believes that this could cost consumers as much as £292m this summer.
James Hickman, managing director of Caxton FX also added, “A lack of confidence with foreign currency is seeing the number of people caught out by DCC increasing year-on-year, and the extra 4pc charge on every transaction could add up to some serious cash over the course of a two-week holiday – as well as some worrying bank statements when people return to the UK.”
“However, DCC is a perfectly legal charge so it’s up to the individual to make sure they are not being caught out by this.”
A compareandsave.com spokeswoman commented :
"Consumers can shop around for prepaid currency cards which are chip and pin protected and separate from your bank account and most of these cards have lower fees than credit cards. Always read the fine print and choose a card that is suitable for your needs - that way you can make sure you only have happy memories of your holiday."
compareandsave.com is one of the UK’s leading personal finance comparison websites. Based in Colchester, Essex, compareandsave.com has been helping UK consumers get a better deal on credit cards, savings accounts, personal loans and more for over five years