Spending money abroad can be a bit of a minefield if you’re not prepared. From sneaky exchange rate mark-ups to unexpected transaction fees, hidden charges can quickly eat into your holiday budget. But don’t worry – with a little knowledge and planning, you can enjoy your time away without nasty surprises on your bank statement. Here’s your ultimate guide to avoiding hidden fees when spending abroad.

1. Be Prepared

Buying your travel money in advance is one of the best ways to avoid hidden fees. Not only does it give you control over the exchange rate, but it also eliminates the stress of searching for cash at the last minute. Make sure you allow enough time for delivery if you’re ordering online.

• Tip: Compare rates with us at CompareTravelCash.co.uk to get the best deal on your holiday money and save more for your trip.

2. Avoid Airport and Hotel Exchange Desks

Currency exchange desks at airports, hotels, and popular tourist spots often offer the worst rates. Why? They know you’re a captive customer and will add a hefty mark-up.

• Tip: Plan ahead and order your travel money online. Many providers offer better rates when you order in advance and collect it at a local branch.

3. Say No to Dynamic Currency Conversion

Have you ever been asked if you want to pay in pounds instead of the local currency when abroad? This is called Dynamic Currency Conversion (DCC), and while it might seem convenient, it’s rarely in your favour. The exchange rate used in these transactions is usually poor, and additional fees may be added.

• Tip: Always choose to pay in the local currency when using your card abroad.

4. Use a Specialist Travel Card

Debit and credit cards issued by UK banks often come with foreign transaction fees (typically 2-3% per transaction). This might not seem like much, but it adds up over the course of a holiday.

Instead, consider using a specialist travel card:

• Prepaid Travel Cards: Load your card with currency before you go. You’ll lock in the exchange rate and avoid unexpected charges.
• Travel Credit or Debit Cards: Some providers, like Starling Bank, Monzo, and Revolut, offer cards with no foreign transaction fees and fair exchange rates.
• Tip: Compare the best travel card options and pick one with no overseas charges for spending or withdrawals.

5. Watch Out for ATM Fees

ATMs abroad can hit you with multiple fees:

• A local bank fee (charged by the ATM provider).
• A foreign transaction fee (charged by your bank).
• Tip: Use ATMs that are part of global networks like Visa or Mastercard to reduce fees, and withdraw larger amounts in one go to minimise charges.

6. Check Your Bank’s Fee Structure Before You Travel

If you’re planning to use your regular debit or credit card, take the time to review your bank’s fees for international spending and withdrawals.

• Questions to ask your bank:
  • What are the fees for foreign transactions?
  • Is there a charge for withdrawing money from an ATM abroad?
  • What exchange rate will be used?

Knowing the answers can help you plan smarter.

7. Be Aware of Weekend Fees

Some money card providers and online banks add a markup at weekends when the currency market is closed. For example, Revolut charges an additional fee for currency conversions on Saturdays, Sundays, or other non-trading days. You’ll see this fee displayed in the app before making a transfer or payment, as it effectively adds a margin to the exchange rate.

This means if you spend abroad on your Revolut card, convert currency in your account, or send money internationally at the weekend, you’re likely to pay more.

• Tip: If possible, plan your currency conversions and international spending for weekdays to avoid these extra fees.

8. Track Your Spending with Apps

It’s easy to lose track of how much you’re spending when everything is in a different currency. Apps like Revolut, Monzo, and Wise let you view real-time spending in pounds, helping you stick to your holiday budget and monitor any fees.

• Tip: Download a spending tracker app before your trip so you can keep an eye on every transaction.

9. Beware of Credit Card Cash Advances

Using your credit card to withdraw cash abroad might seem tempting, but it comes with steep fees. Not only will you pay a cash withdrawal fee, but interest is often charged immediately – even if you pay off the balance in full later.

• Tip: Avoid credit card cash advances unless it’s an absolute emergency.

10. Be Smart About Tipping and Service Fees

In some countries, service charges are added automatically to your bill, and tipping is not expected. However, in tourist-heavy areas, you might be tricked into paying both.

• Tip: Check your bill carefully to see if a service fee has already been added, and avoid over-tipping unnecessarily.

11. Travel with a Mix of Payment Options

Relying solely on cash or one card can backfire. To cover all bases:

• Carry a small amount of local currency for taxis, tips, and emergencies.
• Use a prepaid travel card or a no-fee travel debit/credit card for most transactions.
• Keep a backup card in case your primary card is lost or stolen.
• Tip: Diversifying your payment options gives you peace of mind and flexibility.

Finding theRight Tools

Hidden fees can quickly take the shine off your holiday, but by following these tips, you can spend smarter and save money. Plan ahead, compare rates, and choose the right tools for spending abroad.

At CompareTravelCash.co.uk, we make it easy to find the best exchange rates for your holiday money and compare options for avoiding hidden fees. Take control of your travel budget and enjoy your trip without worrying about extra costs!

Happy travels! 🌍✈️