UK tourists issued 'hidden' charge warning that could ruin your summer holiday

Woman on the beach making contactless credit card payment.
It’s coming into holiday season and Brits across the country are gearing up to head abroad -Credit:Getty

UK holidaymakers heading abroad this year are being warned to stay wary of a hidden charge that could impact the budget they have set by for their trip.

Tourists have been issued this warning as many tend to forget that you can be charged unexpectedly when using your card abroad to pay for things, or even when withdrawing cash.

Experts from card payment provider Dojo have warned tourists to be wary of which card they use on holiday as it can lead to hidden fees, reports Bristol Live. The experts are urging holidaymakers to avoid unexpected fees that can quickly add up by following some simple steps.

If you use your credit or debit card to pay for items or take cash out from an ATM then you can be charged a fee from your bank. These charges can quickly add up into the hundreds dependant on how many transactions you carry out.

Many banks charge a standard 2.99 per cent fee but it can vary per provider. This means that if you spend or take out £100, then you'll be charged an extra £2.99 - which isn't long in adding up when abroad with family or friends.

When going on holiday, follow these simple steps in order to avoid these hidden fees.

1. Make sure you take a card that doesn't charge a fee

When flying abroad, take a card that doesn't charge these additional fees such as Staring and Monzo. These banks offer cards that carry no abroad charges - whilst household banks in the UK like Halifax, Lloyds and Barclays will charge you for using your card overseas.

2. Delete debit cards off your Google Wallet and Apple Pay

Close-up shot of a female hand using her smart phone to scan and pay for a bill at the restaurant during the day.
Digital wallets are extremely easy to use and can pay for things in just one tap -Credit:Getty

These digital wallets make spending super easy with just a tap - but this can have you run into trouble while abroad.

If you have your main debit or credit card as your primary payment form on your digital wallet then you should remove it for your holiday. Instead, add a non-charging bank account like Monzo so you don't get caught out by mistake.

To remove a card from your digital wallet, just head to the app on your Apple or Android phone and remove it directly from your listed payment options.

3. Take cash to make smaller purchases

Using cash is an easy way to keep an eye on your spending and stick to your holiday budget. Knowing how much you can spend and physically having it can ensure you don't accidently overspend.

So, use cash for smaller purchases to keep any additional costs down. Remember to carry just a small amount and keep the rest secure and locked away in a hotel safe or other secure location.

4. Don't take cash out of an ATM when abroad

You can be charged your banks rate for taking money out abroad as well as an additional fee from the ATM itself. ATMs in different countries use various conversion rates and languages so you can accidentally take out more than required - and be charged for it.

According to Which?, some ATMs could end up causing as much as a £25 difference in your withdrawal amounts - due to conversion rates - so take cash with you in the form of the country's currency you are visiting to avoid this hidden fee.

5. Always use the local currency option

When paying by card or withdrawing from a cash machine, you will be given the option to convert to pounds or the local currency.

It is best to go for the local currency or you could deal with the ATM's own exchange rate to pounds which is less likely to be good for your bank account.

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