With the introduction of contactless, paying for everything these days with a card is now so much quicker and easier. A new report by Mintel Travel money, claims more than a third of British holiday makers used their cards overseas. But little did they know that paying in their home currency would actually end up costing them more.
The research found that one fifth of British holidaymakers are using their cards abroad, and unknowingly being charged up to an additional 10%.
Choosing to pay for holiday goods in their home currency has lead to Brits spending out around a whopping £380 million over the course of a year.
These hidden fees come from a practice called Dynamic Currency Conversion (DCC). The practice allows restaurants, cash points, and shops to let customers pay in their home currency, rather than the local currency.
Although paying in their home currency allows them to monitor their spending with ease, FairFX suggest that it often misleads them into paying these higher additional fees.
Deciding to pay in pound sterling abroad, rather than the local currency, often means a cost of between 3% and 10% is usually the average additional fee added to the costs of holidaymakers purchases.
The CEO of FairFX, Ian Strafford-Taylor said: “The premise of DCC appears logical to holidaymakers abroad.
“Unfortunately, this is often nothing but a hyper-inflated rip-off, duping holidaymakers to pay unnecessary fees and accepting unfavourable exchange rates.
“The worst part is that the holidaymakers are actually trying to get the best deal but instead, are losing out and, as a nation, we’re being fleeced to the tune £380m each year.”