How to avoid fees when spending abroad
Martin is revealing everything you need to know right now to cut the cost of getting away.
By BBC News
Holidaymakers are being urged to check their cards before travelling, as standard debit and credit cards can add extra fees when used overseas.
Holidaymakers heading abroad this summer are being reminded to check how they pay before they travel.
Using the wrong card overseas can add extra costs to meals, shopping, hotel bills, cash withdrawals and everyday spending.
Many standard UK debit and credit cards charge a non-sterling transaction fee when used abroad. This is often around 2.75% to 3% of the amount spent, although charges vary by provider.
That means a £1,000 holiday spend could cost around £30 more simply because of card fees.
MoneySavingExpert says specialist travel debit and credit cards are usually one of the cheapest ways to spend abroad because they use near-perfect exchange rates and do not charge extra fees on overseas spending. (MoneySavingExpert.com)
The first step for travellers is to check their existing bank card before leaving the UK.
Some banks offer fee-free overseas spending, while others add charges every time the card is used. A small percentage fee may not look dramatic on one transaction, but it can quickly add up over a week or two.
A specialist travel debit or credit card can help reduce those costs.
Travel credit cards can be useful for overseas spending, but they should be paid off in full to avoid interest. Cash withdrawals on credit cards can also attract interest quickly, so they need extra care.
Specialist debit cards are often better for withdrawing cash abroad, although travellers should still check daily limits, ATM charges and any provider-specific restrictions.
Another important rule is to pay in the local currency when offered a choice at a card machine or ATM.
Tourists are often asked whether they want to pay in pounds or the local currency. Choosing pounds may sound easier, but it usually lets the foreign retailer, payment terminal or ATM provider set the exchange rate.
That can be more expensive than letting your own card provider handle the conversion.
For most travellers using a good travel card, paying in the local currency is usually the better option.
Cash should also be planned carefully.
Airport exchange desks and last-minute currency counters often offer poor rates compared with pre-ordering currency or using a comparison service before travelling.
Prepaid travel cards can be useful for people who want to load money in advance and lock in an exchange rate, but travellers should check for fees, limits and weekend exchange charges before relying on them.
MoneySavingExpert says prepaid cards can help lock in a rate, but specialist travel debit and credit cards are often stronger options for everyday overseas spending. (MoneySavingExpert.com)
Travellers should also watch out for ATM fees.
Even if a UK card provider does not charge for overseas cash withdrawals, the local ATM operator may still apply its own charge. The machine should show this before the withdrawal is completed.
Taking out a larger amount less often can sometimes reduce fixed ATM charges, but carrying too much cash creates its own risk.
A sensible approach is to take a small amount of local currency for arrival, then use a low-fee card for most spending.
Mobile wallets can also be used abroad, but they only help if the card inside the wallet is travel-friendly.
Using Apple Pay or Google Pay with a card that charges overseas fees will still usually trigger the same charges as using the physical card.
Holidaymakers should also tell themselves one simple rule before travelling: do not assume a familiar bank card is cheap abroad.
Checking fees before departure can prevent avoidable costs and make budgeting easier.
For families, even small savings can matter. Card charges, poor exchange rates and ATM fees can quietly add tens of pounds to a trip.
The practical checklist is straightforward: use a specialist travel card where possible, pay in local currency, avoid airport exchange desks, check ATM charges, and repay credit card spending in full.
A few minutes of preparation before leaving the UK can make holiday spending cheaper and less stressful.