11-05-2025
Martin Lewis travel money advice on specialist overseas card
"Don't pay to pay," he says in his Money saving Expert newsletter. "We're heading for summer, and if you're planning to go abroad, there are a host of hidden costs to avoid - however you pay.
"A set of specialist overseas cards give you the same near-perfect exchange rates the banks get, every time you travel (so sort it now, and you needn't do it again)."
Recommended reading:
Should I withdraw cash in pounds or the local currency?
When abroad, always pay and withdraw cash in the local currency, not pounds. With these cards, you only get the special rate if the card does the conversion. So if overseas ATMs/shops ask: "Do you want to convert to pounds?", say no.
Martin explains: "If you have, or get, a specialist overseas card, then there is no doubt that using it and paying in euros is always correct (though do ensure you repay in full to minimise the interest).
Going outside of EU in the next couple of weeks? If so & uv never used an E-Sim to cut mobile costs, we'd love to talk to you so we can film & you can report back your +ve or -ve experience for my @itvMLshow Travel Special. Interested? pls email the team at martinlewis@ — Martin Lewis (@MartinSLewis) April 28, 2025
"Yet even without one of these, if you're using your plastic abroad, while the chart shows with one bank there's a very minor gain for paying in pounds – it's negligible. Whereas get it wrong, and you can lose out a lot. So for safety and simplicity's sake, the golden rule is:
If using a card and you're asked whether you want to pay in pounds or pay in local currency (eg, Euros) always say the local currency (the same almost certainly applies US dollars when in the States or other currencies elsewhere too)."
What else do I need to think about before I travel?
Don't forget to buy travel insurance - ideally buy this as soon as you book your holiday in case you fall ill or something stops you being able to go on holiday.
Also, there's still time to order a GHIC card, but be quick.
The UK GHIC is a key benefit that lets Brits get necessary state healthcare in the European Economic Area (EEA), and some other countries, on the same basis as a resident of that country. This may be free or it may require a payment equivalent to that which a local resident would pay. It replaced the European Health Insurance Card (EHIC).
And, think about your mobile deal - do you need an eSim?
Want to lock in the rate today, rather than on the day you spend?
The advice is to get a prepaid travel card. Specialist prepaid cards let you load on to them in advance, and choose the day the currency's converted. So you're taking a punt on how you think rates will move.
