Holidaymakers warned: avoid these 5 costly card mistakes abroad - expert urges Brits to carry cash too

• Payment expert Richard Carter warns Brits about common but expensive mistakes when using cards abroad
• Hidden fees on debit and credit card transactions can quickly add up while traveling
• Choosing the wrong payment options can lead to unnecessary charges on purchases and cash withdrawals
• Some banks charge significantly higher fees than others for foreign transactions
• Planning ahead can help holidaymakers avoid unexpected costs and keep spending in check

A card payment expert is warning Brits about costly mistakes when using cards abroad.

Richard Carter, CEO of low-cost payment app Lopay, urges holidaymakers to plan ahead to avoid hidden foreign transaction fees.

Drawing on years of experience helping small businesses cut payment costs, Carter explains that withdrawing £250 abroad with a debit card can cost £11.88, while some credit cards charge up to £14.95.

Even everyday purchases can rack up fees: spending £50 on a debit card might cost an extra £1.38, and a credit card could add £1.50.

To help travellers save money, Carter has revealed five key tips for avoiding extra charges when paying for food, shopping, and more overseas.

(Photo: Pexels) | Pexels

Always pay for things in the local currency - never convert to GBP

Whether using your credit or debit card, overseas customers are always asked whether they would like the transaction to be charged in local currency, or to be calculated in Pounds Sterling.

This will usually be an option on the card reader or at an ATM, but Carters says it is essential to always choose the local currency to avoid extra fees and save money. This is true whether you're shopping online or using a debit or credit card.

When you pay in the local currency you avoid being hit by the vendor or cash machine’s mark-up fee for converting the money. These additional charges are often around 3% but can be into the double digits.

Carter says: “This is the one rule I tell my family, friends or anyone who asks - don’t throw your money away just for the convenience of seeing the transaction appear in pounds and pence.

“Use a currency converter app on your phone if you’re unsure about how much the price will translate to in your more familiar currency.

“One thing that certainly won’t look familiar is the charge on your bank or credit card statement, once you’ve swallowed that hidden fee - and of course they all add up.”

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Get a fee-free debit or credit card

Alongside bringing some local currency with you, you’re best off finding a fee-free debit or credit card, that doesn’t charge to spend or withdraw cash.

Starling and Monzo banks both offer cards that carry no abroad charges. Household banks like Halifax, Lloyds and Barclays will charge you for using your card overseas.

Use a credit card over a debit card

Using a credit card abroad gives you protection under legislation from the Consumer Credit Act, known as Section 75. This hugely increases your chances of a refund, if the worst happens.

If goods are faulty, not delivered or a supplier goes bust, you will have the security of getting your money back. Section 75 doesn’t only apply to purchases made in the UK, but transactions made abroad too.

Section 75 does not apply