Martin Lewis has issued essential financial advice for UK tourists heading abroad, covering the safest payment methods and how to avoid unnecessary fees. Speaking on his BBC podcast, the money-saving expert addressed common pitfalls when booking accommodation and accessing cash overseas.
Booking.com payment warning
A listener asked whether it is better to pay for hotels on Booking.com in pounds sterling or the local currency. Lewis responded with a clear principle: "Whatever type of plastic you have, the safest thing to do is pay in the foreign currency." He explained that if you are in Europe, pay in euros; in the United States, pay in dollars. The reason is that your card provider handles the conversion at a known rate. Conversely, paying in pounds means the merchant performs the conversion, often at an unfavourable rate. "Many times if you are paying on a foreign website, if you say, I'll pay in pounds, it means they are doing the currency conversion for you and the rates you get are generally far worse than you would get converting yourself," Lewis warned.
He suggested considering a specialist travel card that offers a perfect exchange rate. However, he cautioned that even with such a card, travellers often mistakenly choose to pay in pounds, allowing the shop to do the conversion and negating the card's benefits. "So pay in euros or pay in dollars. If you're paying in a foreign currency, don't let the shop do the conversion, don't pay in pounds," he reiterated.
Getting cash abroad
Another listener planning a trip to Bruges, Belgium, asked whether it is better to obtain cash before leaving the UK or upon arrival. Lewis advised that the safest way to get a decent rate for cash is to use a Bureau de Change comparison site before departure. However, for those with a specialist overseas card, withdrawing cash from an ATM in Bruges can be a good option, provided the machine does not impose a large fee.
He added that even with a small ATM charge of €2 or €3, it may still be cost-effective for larger withdrawals. "Even if it does have an ATM charge, let's say of €2 or €3 euros, and you're needing to get out €600 or €700, that's still probably cheaper, because €2 on €600 or €700 is not big. If it's €2 on €50, that's a big charge. €2 on €600 is effectively depreciated across the whole value, so it works," Lewis explained.
