Traveling abroad can be exciting, but using your credit card outside your home country comes with its own set of challenges. If you own an M and S credit card, it’s essential to know the fees and charges that apply when making international purchases or withdrawals.
Foreign Transaction Fee
One of the main charges you’ll encounter when using your M&S credit card abroad is the foreign transaction fee. This fee is applied whenever you make purchases in a foreign currency. The fee is usually a percentage of the transaction amount.
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M&S credit cards typically charge 2.99% for purchases made in a foreign currency. This fee covers the cost of converting your transaction from the foreign currency to British pounds. Although it may seem small, these charges can add up quickly if you use your card frequently while traveling.
Cash Withdrawal Fee
Another important charge to be aware of is the cash withdrawal fee. If you use your M&S credit card to withdraw cash from an ATM abroad, you will be charged a fee. The fee is 2.99% of the amount withdrawn, with a minimum charge of £2.75.
Additionally, interest on cash withdrawals starts immediately. There is no interest-free period for cash advances, unlike with regular purchases. Therefore, withdrawing cash using your credit card can become quite expensive.
Exchange Rate Markup
When you use your M&S credit card for international transactions, the exchange rate you receive is usually set by the card network (e.g., Mastercard). However, there may also be a small markup added to this rate by the card issuer. This markup is separate from the foreign transaction fee.
The exchange rate markup can slightly increase the overall cost of your purchases abroad. It’s important to remember that this markup is usually built into the transaction and might not be clearly visible on your statement.
Interest Rates on Purchases
If you carry a balance on your M&S credit card, the interest rate on your purchases can also affect the total cost of your international transactions. The standard interest rate for purchases will apply to your foreign purchases unless you pay off your balance in full by the due date. Always check the interest rate on your card before using it abroad to avoid surprises.
How to Minimize M And S Credit Card Charges Abroad
There are several ways to reduce the costs of using your M and S credit card abroad:
- Use it for purchases, not cash withdrawals – Since withdrawing cash attracts high fees and immediate interest, it’s best to use your card for purchases instead.
- Pay in the local currency – When given the option, always choose to pay in the local currency rather than in pounds. This avoids dynamic currency conversion fees, which often come with unfavorable exchange rates.
- Pay off your balance in full – To avoid paying interest on your purchases, make sure you pay off your credit card balance in full each month.
Tips for Traveling with Your M and S Credit Card
- Notify your card issuer – Before you travel, inform M&S that you will be using your card abroad. This can help avoid your card being blocked for suspicious activity.
- Carry a backup card – It’s a good idea to bring an extra card in case your M&S card is lost or doesn’t work in certain locations.
- Monitor your transactions – Regularly check your account while traveling to ensure that all charges are accurate and no fraudulent transactions have been made.
Is It Worth Using an M and S Credit Card Abroad?
Whether or not you should use your M and S credit card abroad depends on your spending habits and how you manage your finances. If you don’t mind the foreign transaction fees and plan to use the card for purchases, it can be convenient. However, if you are looking to avoid extra charges, you may want to consider alternative travel credit cards that have lower or no foreign transaction fees.
FAQs: M And S Credit Card Charges Abroad
Q. What is the foreign transaction fee on an M and S credit card?
A. The foreign transaction fee is 2.99% of the amount spent in a foreign currency.
Q. Can I withdraw cash abroad using my M and S credit card?
A. Yes, but you will be charged a fee of 2.99% with a minimum charge of £2.75. Interest also starts immediately.
Q. How can I avoid M And S Credit Card Charges Abroad?
A. To minimize fees, avoid cash withdrawals, pay in the local currency, and pay off your balance in full each month.
Conclusion
Using your M and S credit card abroad can be convenient, but it comes with fees that can add to your travel costs. Understanding the different charges, such as foreign transaction fees, cash withdrawal fees, and exchange rate markups, can help you plan your spending wisely. Always try to avoid unnecessary fees and use your card responsibly while traveling.
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