Travel experts advise holidaymakers to be cautious of a common money mistake that can lead to unnecessary expenses. According to specialist Kate Donnelly, it is crucial for British travelers to always opt to pay in the local currency when abroad to avoid hidden fees imposed when using Great British Pound (GBP). By choosing to pay in the local currency, whether it be euros or dollars, individuals can steer clear of unfavorable exchange rates and additional charges that come with dynamic currency conversion (DCC).
Kate emphasizes the importance of avoiding paying in pounds as it gives the ATM or shop the authority to handle the currency exchange, often resulting in a less favorable rate. Opting for fee-free cards like Monzo or Starling is recommended as they offer better exchange rates and do not charge transaction fees. Financial expert Martin Lewis supports this advice, urging people to always opt for local currency payment to prevent being overcharged during transactions, regardless of their location worldwide.