Using a credit card to pay for your holiday abroad could stop you from ending up out of pocket – even if it’s only the deposit.
Millions of Brits are still jetting off to sunnier climes as autumn arrives in the UK, with the majority having already booked their flights and accommodation.
But for anyone leaving it late in the hope of picking up a bargain, using a credit card rather than debit card or cash to pay for the trip is highly recommended.
Simple hack
Saurabh Chawande, of leading payment solutions experts myPOS, has explained why this simple hack can be so crucial if you run into difficulty.
He said: “One of the most substantial benefits of using a credit card for travel expenses is the comprehensive protection it offers.
“If you want a last-minute deal you will often have to make a quick decision, and maybe book with a firm you have not dealt with before. Often a fast deposit is crucial to securing a rock-bottom price.
“Because all credit card payments are covered under the Consumer Credit Act (CCA), it means you will have some peace of mind if you do have to make an on-the-spot reservation.”
Section 75 of the CCA allows people to raise a claim against a bank or lender for a “breach of contract or misrepresentation by the supplier of goods or services”.
So if you have paid for flights and the airline goes out of business, you will be able to claw back the money under the legislation.
The Financial Ombudsman website states: “Section 75 applies if you paid some or all the cost by credit card and the cash price of the goods or services is more than £100 but not more than £30,000.”
But a key thing for holidaymakers is that you are still covered even if you only paid for part of the payment via a credit card.
That means if you put the deposit for flights or accommodation on your credit card – and paid the rest of the amount with either cash, cheque or a debit card – you will still be able to claim for the full amount.
Saurabh said: “Most credit card providers also offer travel insurance, which will cover cancellations and delays, while in some cases also allowing you to be reimbursed for additional costs such as hotel stays or meals.
“Car rental discounts and insurance cover are also advantages of using this payment method.”
The myPOS expert highlighted some of the other key things to pay for on a credit card:
Online purchases
Credit cards come with robust fraud protection policies, ensuring that if your details are stolen and used fraudulently you won’t be held responsible for the unauthorised charges.
Purchase protection also covers items against damage or theft for a certain period after purchase.
Large purchases
When buying items such as electronics, appliances and furniture, using a credit card can extend the manufacturer’s warranty.
These larger items are more prone to damage in transit – another thing you will be covered for in a credit card transaction.
Event tickets
Many credit cards will reimburse you if you’re unable to attend an event due to reasons such as illness and severe weather.
They also often have partnerships with event organisers, giving cardholders access to exclusive presales, discounts or preferred seating.
