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Martin Lewis says one simple switch could stop Brits wasting money on holiday
He said a normal bank card can add 2.75% to 3% on overseas spending, and urged holidaymakers to use travel cards instead.
MoneySavingExpert founder Martin Lewis warned millions of Brits that standard bank cards abroad secretly add up to 3% to every purchase, potentially costing hundreds of pounds this summer.
Most high street banks quietly apply a 'non-sterling exchange rate fee' between 2.75% and 3% on overseas spending, meaning a £100 purchase actually costs £103 due to hidden conversion charges.
To dodge these charges, Martin Lewis recommends specialist travel cards including Barclaycard Rewards, which offers cashback, and Chase, providing fee-free spending and no ATM withdrawal charges abroad.
However, Martin Lewis issued an important warning: credit card users must pay balances in full monthly to avoid interest charges that quickly eliminate any savings from fee avoidance.
Travel experts at Lapland Famille also advised holidaymakers to pay in local currency rather than pounds, as choosing local currency is usually cheaper and avoids extra conversion fees from retailers.