Avoid Hidden Fees When Abroad by Paying in Local Currency

Travelers heading abroad this summer should be aware of a common money mistake that can result in hidden fees. According to travel specialist Kate Donnelly, paying in local currency is always the best option when making purchases or withdrawing cash while abroad.

'When you're abroad, you should always pay in the local currency,' said Donnelly. 'Whether it's euros or dollars, depending on where you are, and you should never select the option of paying in Great British Pound (GBP).'

This is because when you choose to pay in pounds, your bank or card provider does the exchange, which often comes with a poor rate and extra fees. This can lead to overpayment, as seen by HSBC's statement that 'DCC usually costs you more'.

To avoid this, experts recommend investing in a fee-free card, such as Monzo or Starling, which add no transaction fees and offer the best exchange rates.