Holiday money: costly debit card mistake could drain your travel cash – best way to spend and use money abroad
Holidaymakers could be losing £10+ each time they take out cash abroad 💳
- Brits are being warned about costly fees from using ATMs abroad
- A single withdrawal can trigger up to four separate charges
- Fees include ATM use, bank withdrawal, currency conversion, and admin costs
- Using a credit card abroad can lead to even higher charges
- Experts advise using fee-free cards or paying by card instead of taking out cash
UK holidaymakers are being urged to think twice before using ATMs while abroad – or risk racking up four separate fees just to get their own money.
Payment expert Richard Carter, founder of low-cost payment app Lopay, says too many Brits are still making one simple yet expensive mistake on holiday: withdrawing cash at foreign ATMs.
While it might feel like the quickest way to grab some spending money, the hidden costs can add up fast – especially if you do it more than once during your trip.
Here's how the costs stack up:
- ATM fee abroad: Many machines charge a fixed fee just to use them.
- Your bank’s withdrawal fee: This can add a percentage or flat rate.
- Currency conversion fee: Charged by the card network (e.g. Visa, Mastercard, Amex), often around 2.75–3%.
- Card issuer/admin fee: Some UK banks slap on a further fee for foreign use.
In total, you could be losing over £10 for every €40 you take out – especially if you’re using a credit card rather than a debit card.
For example, if you bank with HSBC, a single ATM withdrawal abroad could see a 2% withdrawal fee (min £1.75, max £5), and a 2.75% currency conversion fee.
That’s almost 5% of your cash gone – and that’s just one transaction. Spread across a 10- to 14-day holiday, these small charges could snowball into hundreds of pounds.
Carter’s advice is clear: “Use ATMs only in emergencies. People work hard to afford their holidays – it makes no sense to hand money back to banks through hidden charges.”
He adds that ATMs abroad don’t always make fees obvious upfront: “You may not even realise you’re being charged until you check your bank statement. That quick €40 stop could actually cost you £50 or more across multiple trips.”
Smarter, cheaper ways to spend abroad
Instead of relying on cash machines:
- Use fee-free travel debit cards like Chase, Starling, or Monzo
- Pay by card whenever possible – it’s more secure and often cheaper
- Check fees before you travel – use your bank’s app or website
- Avoid DCC (Dynamic Currency Conversion) – always choose to pay in the local currency when using your card
Ditch the ATM card routine abroad unless absolutely necessary. With contactless payments accepted widely across Europe and beyond, there's little reason to pay steep fees for your own money.
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