\n The money-saving expert says many travellers unknowingly make the wrong choice at cash machines and checkouts – one that hands control of the exchange rate to foreign banks or retailers.\n<\/p>\n
\n It\u2019s a quick tap most people don\u2019t think twice about, but over the course of a trip, it can quietly add up.\n<\/p>\n
\n According to Lewis, the fix is straightforward – and getting it right could make a noticeable difference to how much you spend while away.\n<\/p>\n
The quick tap that can cost you<\/p>\n
\n When paying or withdrawing cash abroad, you\u2019re often asked whether you want to be charged in pounds or the local currency.\n<\/p>\n
\n \u201cWhen you go abroad and you pay on plastic and the overseas cash machine or shop asks you, do you want to pay in pounds or euros, what do you do?\u201d he said.<\/p>\n
\u201cThe correct answer is you should always pay in euros, or whatever the local currency is, because that means it’s your plastic that’s doing the exchange rate conversion, not the overseas shop or ATM.\u201d<\/p>\n
He added that even standard UK cards often still work out better overall than letting foreign machines set the rate themselves.<\/p>\n
\u201cEven a bog-standard UK credit or debit card\u2026 is beating most overseas ATMs or shops’ exchange rates,\u201d he said, based on his testing.<\/p>\n
His advice is simple: stick with the local currency every time, whether that is euros, dollars, or even dong when travelling further afield.\n<\/p>\n
\n It might seem easier to pick pounds, but that\u2019s where people go wrong.\n<\/p>\n
\n Lewis says the rule is simple: always choose the local currency – whether that\u2019s euros, dollars, or anything else.\n<\/p>\n
\n By doing this, your own bank or card provider handles the conversion, which is typically more competitive than the rates offered by foreign ATMs or retailers.\n<\/p>\n
\n Even standard UK debit or credit cards can outperform the exchange rates set by overseas machines, meaning that one small choice could save you money every time you use your card.\n<\/p>\n
Why dynamic currency conversion adds up<\/p>\n
\n The trap is known as \u201cdynamic currency conversion.\u201d It\u2019s designed to feel convenient, showing you exactly what you\u2019ll pay in pounds \u2014 but that clarity often comes at a cost.\n<\/p>\n
\n The exchange rate used is usually less favourable, and extra fees can be baked in without being obvious.\n<\/p>\n
\n While a single transaction might not seem like a big deal, repeated spending – meals, transport, shopping – can quickly add up over a holiday.\n<\/p>\n