Watch out for currency conversions
IF you are using your credit or debit cards abroad, some merchants will offer to convert your bill into sterling.
This is known as dynamic currency conversion (DCC) and may seem appealing as you’ll know exactly how much you’ll be debited in pounds and pence.
However, the big downside is the fact this gives the retailer the opportunity to use a poor rate of exchange.
Andrew Hagger from MoneyComms says: “This is typically 4 per cent of the value of the purchase and could see you paying over the odds for your goods.”
Recent figures from currency specialist Caxton FX show that almost half of holidaymakers are still getting caught out by this con trick.
The simple way to avoid getting stung is by always insisting on paying in the local currency.
“Never agree to the option to pay in sterling,” says James Hickman, from Caxton FX.
“Paying in the local currency will ensure there are no surprise charges on your bill.
“This will mean that every penny of your holiday budget is put to good use.”