Paying in pounds abroad 'not a money-saver'
People using their credit cards to pay in pounds sterling abroad might not be saving money, Abbey said today.Holidaymakers often make the purchases in order to dodge exchange fees, the credit card provider pointed out.However, while the card issuer does not levy the charge, they are often taken by the (foreign) acquiring bank, according to Abbey.Moreover, this overseas firm sets its own exchange rate for the purchase - a practice known as "dynamic currency conversion" - which can be highly disadvantageous to customers.Callum Gibson, head of Abbey Credit Cards, commented: "Generally people assume that if they pay for a transaction in pounds then this means they can avoid paying a foreign exchange fee. Unfortunately, this is not the case."He added: "When you pay for anything abroad, no matter what the currency, some form of foreign exchange is going on and with most cards, you will be charged for it."In a poll conducted by Abbey, 92 per cent of Britons had not heard of dynamic currency conversion.
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