Holidays abroad have been touch and go this year with many people choosing to remain at home in the UK rather than jet overseas. However, for the few who are still choosing the Mediterranean over the English coastline, package holidays and flights have never been cheaper. With this in mind, many people have been on the look out for travel advice following the possibility of their holiday either being cancelled, or the travel company or hotel going bust.
Currensea is a travel card that links directly to your bank account, eliminating the hassle of juggling currencies with prepaid cards or different accounts.
The card automatically saves travellers 85 percent on bank charges anywhere in the world.
Founder of Currensea James Lynn spoke exclusively to Express.co.uk about debit and credit card protection for holidaymakers.
“I think one of the key things on this is knowing that if there are problems that do occur and you pay by credit or debit card you do have protection on either the section 75 for a credit card or the chargeback scheme with a debit card,” he began.
He added: “But I think one of the lesser known things is if you’re booking your holiday through a third-party agent you should pay by debit card where possible.
“And the reason for this is if you actually book a holiday with a credit card via a third-party and they go bankrupt, if you used a credit card and try to use section 75 protection, your credit card won’t pay out.
“So, by contrast, the debit card chargeback scheme will cover you.
“That is something that is very much less well-known and most people would never find out about that.”
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Lynn explained that with many holiday destinations being deemed “high risk” and with hotels suffering, this is a vital piece of information to be aware of.
He continued: “In that scenario where you have got a high risk country and because of that hotels are suffering, some of them are going bankrupt and there are challenges there.
“That is a scenario where I would advise anyone to be really careful how they pay for things.
“Whilst both credit and debit are significantly better than cash or transferring money across to pay for something where there literally is no protection.
“There are subtleties and nuances in each of them which are worth taking a gamble, and that is a particularly important one I think.”
The Money Saving Expert has offered holidaymakers similar advice.
They explained that some credit card firms are rejecting Section 75 claims because the retailer they bought from used a third-party payment-processing firm to collect their payment.
The personal finance website explains that there has to be a direct link between the customer the credit card company and the supplier (the retailer selling the goods).
The website added that if this relationship is “broken by the involvement of an intermediary or third party” the Section 75 policy may not apply.
The Money Saving Expert also explained that the “chargeback” scheme means that if an individual does not receive the goods they bought then they may be able to get their money back.
However, the “chargeback” is not a legal protection and is offered at a card company’s own discretion.
Chargeback will cover you when buying via an agent while Section 75 doesn’t always.
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