Travelers planning a summer getaway are advised to be mindful of a common money mistake that could lead to unnecessary additional costs. According to financial and travel experts, a straightforward rule should be kept in mind.
Kate Donnelly, a travel specialist, emphasizes that all UK citizens traveling abroad this summer should be aware of a crucial factor that may result in undisclosed charges while on vacation. She stresses the importance of always opting to pay in the local currency, whether it be euros or dollars, rather than selecting to pay in Great British Pound (GBP).
Whether making a purchase or using an ATM, it is recommended to choose to pay in the local currency instead of opting for Dynamic Currency Conversion (DCC). Kate highlights that selecting to pay in pounds while abroad allows the establishment to handle the currency exchange, often resulting in additional conversion charges and unfavorable rates.
While DCC might offer the familiarity of pounds for some consumers, it typically incurs extra fees and a less favorable exchange rate, as confirmed by HSBC. To avoid these pitfalls, Kate suggests obtaining a fee-free card like Monzo or Starling, known for their advantageous exchange rates and absence of transaction fees.
Financial expert Martin Lewis also advocates for paying in local currency to prevent inflated fees, regardless of the destination. By adhering to this advice, travelers can make more informed and cost-effective financial decisions during their trips.