Have you ever checked how much it costs to use your credit card in a cash machine when in France? Many card issuers charge a higher rate of interest and you may also lose your 56-day interest free period that applies, for example, to normal shop purchases. Barclaycard charge customers the equivalent of 21.3 per cent annual percentage rate (APR) on cash withdrawals. This compares with its current zero per cent introductory rate on purchases, or its 15.9 percent standard rate, which comes with a 56-day interest-free period. Add to this a foreign exchange fee, fixed by Barclaycard at 2.75 per cent, and the card's own cash withdrawal fee, which Barclycard has set at 2 per cent. You can see that it could cost you quite a bit extra to have a few euro in your pocket.

 

So what can you do?

According to the Money Saving Expert website (http://www.moneysavingexpert.com/cgi-bin/viewnews.cgi?newsid1106765397,71685) , you need to check out the different charges you may face and find a card supplier who doesn’t charge you the earth, then use it just for travel abroad. If you end up using a cash machine take a larger amount out, not lots of small withdrawals, just make sure the cash is safely stored away. Check out the table on the Money Saving Expert website for more complete information on the different charges of both debit and credit cards in Europe.