Holiday money mistake costing Scots hundreds of pounds this summer
Travellers jetting off abroad this summer are reportedly unknowingly falling into a costly trap at restaurants, shops and ATMs whilst on holiday.
According to Jessie Chambers, Travel Expert at Global Work & Travel, choosing to pay in pounds (GBP) instead of the local currency could be inflating holiday spending by as much as 10% per transaction - thanks to a little-known practice called Dynamic Currency Conversion (DCC).
She said: 'It feels familiar and safe to choose pounds, but it's one of the biggest travel money mistakes Brits make. You're letting the shop or ATM provider apply their own conversion rate – and it's almost always worse than your bank's.
Dynamic Currency Conversion is when a foreign card machine offers to convert your bill into GBP on the spot. While it sounds convenient, this 'service' often comes with:
Inflated exchange rates
Hidden mark-ups (typically 6–10%)
Additional fees layered on top
A €100 meal in Spain could cost £84 when paid in local currency, but would actually £8 more when paid in GBP via DCC.
Multiply that over a week-long trip with hotels, restaurants, and activities, and travellers could be losing £100–£250 without realising.
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Money saving tips when spending abroad
Always pay in local currency – especially at ATMs and restaurants
Use a card with no foreign transaction fees (e.g. Revolut, Monzo, Chase)
Decline 'conversion to GBP' offers from shopkeepers or waiters
Withdraw cash abroad in local currency using fee-free apps
Jessie added: "We've had travellers message us mid-trip after realising how much they've lost to bad conversions. The worst part? It's totally avoidable."
Another thing to consider, according to Alastair Douglas, CEO at TotallyMoney, is which credit card to take - if at all - to make sure you're not being hit by hefty currency conversion charges.
Alastair warned: 'Don't get burnt by bank charges this summer and take a fee-free card with you. Otherwise, if you pack the wrong one, you could find yourself paying £8.15 for £5 of cash when abroad.'
Alastair also advises checking your providers flat fees.
He added: "When using your card, remember that making multiple, smaller purchases or withdrawals can really add up. In which case, you might be better off withdrawing a larger amount of money once, and setting a daily budget.'
Alastair also warned if you're in the UK and switching one foreign currency to another foreign currency, then it's likely that you'll be charged two sets of fees or commissions.
One will be to convert your cash into pounds, and another from pounds into the new currency. So, you might be better off waiting until you reach your destination and exchanging there.
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