Holidaymakers using a prepaid card overseas are being warned of a sneaky 15 per cent charge that can leave them stranded without access to their own money. The little-known ‘tolerance’ charge allows MasterCard and Visa to add up to 15 per cent to the bills of prepaid card users. It is supposed to protect customers from overspending, but the charge is added regardless of whether the user can meet the bill. Card issuers say the charge is necessary on certain types of spending — notably restaurants, taxis and petrol stations — to prevent customers from going in to the red.

Although the charge is refunded up to seven days later, this cash is effectively frozen until it’s credited back on to the card. And customers complain that it’s often not refunded until they...Read more here--> The sneaky 15 per cent charge on holiday spending with prepaid cards