**Holidaymakers Warned: One Simple Rule Could Save You Hundreds on Hidden Travel Charges**
As the summer holiday season approaches and more Britons prepare for trips abroad, financial experts are urging travellers to be wary of sneaky fees that can quickly rack up while spending overseas. Richard Carter, chief executive officer at Lopay and a leading card payment specialist, has issued timely advice to ensure holidaymakers aren’t left with unexpectedly large bills on their return home.
Britons are increasingly using debit and credit cards for convenience, but Carter points out that failing to understand bank fee structures can prove costly. He stresses that charges for paying abroad—whether making purchases or cash withdrawals—can be much higher than many realise. For instance, withdrawing £250 in cash abroad can come with fees of nearly £12 on a typical debit card, and almost £15 on some credit cards. Even seemingly minor spending, such as a £50 purchase, can incur additional billing—£1.38 on debit cards and £1.50 on many credit cards.
To help consumers dodge these fees, Carter has outlined five practical tips, with the most important being: **Always pay in the local currency** when using your card outside the UK. This, he says, is the number one rule he shares with friends and family. When asked during card payments or ATM withdrawals whether to charge in local currency or Pounds Sterling, choosing the latter may seem convenient but often triggers a ‘dynamic currency conversion’ fee, which vendors or ATM providers add to your transaction. These can be over 3% and occasionally far higher. Carter advises, “Don’t be lured in by the comfort of seeing the final price in pounds – that convenience comes at a premium which quickly adds up over a week’s holiday.”
For those who may feel unsure, he recommends installing a reliable currency converter app on your smartphone. This way, you’re not left in the dark about how much you’re spending, while still benefiting from the savings that come with opting for local currency payment.
Aside from this golden rule, Carter suggests travellers consider acquiring a **fee-free debit or credit card**. Several challenger banks now offer cards that waive foreign transaction fees altogether—Starling and Monzo being standouts. In contrast, many legacy banks, such as Lloyds, Halifax and Barclays, typically continue to charge customers for international usage, often layering currency conversion and admin fees.
A further tip is to use credit cards instead of debit cards for purchases abroad, where possible. Credit cards can provide valuable extra protection under Section 75 of the Consumer Credit Act, covering refunds for goods not delivered, faulty items, or losses from company insolvency. Notably, this legal safeguard applies worldwide, not just in the UK; unfortunately, the same level of protection does not extend to debit card transactions.
Another aspect to be mindful of is ATM usage overseas. Both the cash machine itself and your own card provider may add charges. On average, debit card holders can expect a 2.75% fee, and credit card users around 2.95%. Some banks, like HSBC, levy a minimum £1.75 per transaction on top of a currency conversion surcharge. If withdrawing cash is unavoidable, always select ‘no conversion’ or request to be billed in the local currency, otherwise the local ATM operator could apply its own (often unfavourable) exchange rate.
Carter also reminds us that carrying **a small amount of cash** is still wise, as card facilities may be limited in some destinations. However, he cautions against exchanging money at the airport or directly through high street banks, pointing to generally poor rates and costly commissions. Instead, he suggests shopping around at supermarket bureaux or reputable high street retailers, where rates are often more competitive.
Finally, planning ahead remains key. Checking online comparison sites like MoneySuperMarket can help you find the best foreign exchange rates before you travel, and arranging your currency pick-up in advance can help you avoid last-minute mark-ups.
With financial institutions and retailers all applying their own fees in various ways, holidaymakers are strongly urged to take a few extra minutes to research the payment options and foreign exchange rates before jetting off. These simple precautions can ultimately save considerable sums—leaving more in your pocket to enjoy your well-earned getaway.