Brit holidaymakers are being urged to monitor their bank balance abroad, as using certain debit cards can incur a 3% currency exchange fee on each transaction, potentially leading to a hefty bill upon return.
Expert Warns of Hidden Charges
Alex Dyer, managing director at Ski Vertigo, highlighted that debit-card use overseas can carry a currency exchange fee of around 3%, plus a spending or cash fee per transaction. He advised: "Check purchase charges, withdrawal charges, ATM limits and credit-card cash interest before departure. Repeated small withdrawals can multiply fixed fees."
Cash Still Crucial for Some Purchases
Experts say carrying cash remains important, as smaller towns and taxi rides may not accept card payments, or poor signal may prevent card connections. Mr Dyer added: "Payment planning should sit alongside passports, insurance and airport transfers. Check your card terms before leaving, learn how people normally pay at your destination and keep a backup option separate from your main wallet."
Compare Currency Exchange Rates
The team noted that arranging local currency before travel is essential. A consumer comparison showed the sterling cost of $1,000 at £751 through the cheapest bureau, compared with £909 for an unpreordered airport exchange. For restricted currencies, travellers should plan to exchange or withdraw after arrival legally.
