Holidaymakers are being warned about a costly hidden charge when travelling abroad. Travel expert Simon Calder has issued a warning to holidaymakers about the hidden charges that can come with using your card abroad. He explains that when paying with a card in a foreign country, you may be given the option to pay in the local currency or in your home currency. While paying in your home currency may seem like the more convenient option, it can actually end up costing you more due to Dynamic Currency Conversion (DCC) fees.
DCC fees are charges applied by merchants or ATM operators when you choose to pay in your home currency rather than the local currency. These fees can often be significantly higher than the exchange rate offered by your bank or credit card provider. By choosing to pay in your home currency, you could end up paying an inflated price for your transaction without even realizing it.
Calder advises holidaymakers to always choose to pay in the local currency when using their card abroad. This way, you can avoid the additional DCC fees and ensure that you are getting the best exchange rate possible. He also recommends checking with your bank or credit card provider before travelling to see what fees may apply when using your card overseas.
It’s important to be aware of these hidden charges when travelling abroad, as they can quickly add up and end up costing you more than you anticipated. By following Calder’s advice and opting to pay in the local currency, you can avoid falling victim to these costly fees and make sure that you are getting the best value for your money while on holiday. So next time you’re abroad, remember to always choose to pay in the local currency to avoid any unnecessary charges.
