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The Guardian
11-06-2025
- Business
- The Guardian
From fraud protection to fee-free ATM withdrawals: seven top tips for managing holiday finances
You might consider yourself a seasoned traveller, somebody who obsessively plans holidays down to fanatically pinned maps and destination-appropriate music playlists. But even the most globetrotting gadabout can fall prey to poor money management. Simple mistakes such as failing to gen up on exchange rates or pressing the wrong currency button on a foreign ATM can result in you leaking cash that could be spent splurging on a ritzier hotel room or trading in a beer for a jazzed-up martini. From using the best bank card to maximising reward benefits, here's how having a savvy approach to your money while overseas is the secret to stress-free travel. It's all too easy when sitting on the beach, piña colada in hand, to forget that every time you tap your debit card on that contactless terminal, you could be charged between 2.75% and 2.99% of the transaction value of whatever you're buying, depending on the card provider. Every coffee, every snack, every bus trip you pay for, it'll all mount up until you're left with a monster bill by the end of the holiday. The best option? Switching to a fee-free credit card such as the Barclaycard Rewards card*, which is 100% fee-free for purchases and ATM withdrawals. *Representative example. 28.9% APR representative (variable); purchase rate 28.9% p.a. (variable); based on a £1,200 credit limit. The approval of your application depends on financial circumstances and borrowing history, so do the terms you may be offered. The interest rates may differ from those shown. T&Cs apply. Holidays relax people. That's their USP. They offer a guard-lowering calm, making us brave enough to Macarena away until the small hours – but this also means we may share bank details over unsecured networks in hotel lobbies, or fail to notice somebody hovering over our shoulder, quietly taking down our card details. For your peace of mind, Barclays has fraud protection systems that are in place 24/7 to protect your account. If they spot something suspicious, you'll be alerted straight away. And if you misplace your card, you can freeze it in the app so that nobody can use it until you find it. Even better, if you report your card lost or stolen while you're abroad, Barclays will arrange for emergency cash to reach you within three days. They'll also send a replacement card to your home address. Ah, the wretched B-word. But allocating yourself a predetermined allowance each day will leave you with more money as your trip reaches its denouement, ensuring you end your vacay on a high note. A rough yardstick is to estimate how much you'll be spending on costs such as food, accommodation, transport and activities, and adding an extra 30% on for extras/emergencies. Then divide it by the number of travel days to arrive at a daily limit. Other belt-tightening measures include skipping lunch by filling your boots with the hotel breakfast buffet, seeking out street food, or scouring the reviews/social media to find a restaurant on the backstreets away from the tourist zones, which could slash your bill and deliver a much more authentic experience. To help you budget like a pro, set up a savings goal1 in the Barclays app1, or turn on the spending alert so you can stay on top of your balance at all times. Foreign holidays are rarely ever cashless experiences: having some local coins and notes is essential. However, charges at international ATMs can be eye-wateringly expensive: as high as £14.95 when taking out £250 on your credit card, according to a comparison site (tip: always select 'without conversion'). Sidestep that with a fee-free card such as the Barclaycard Rewards credit card*, where ATM withdrawals can be made without any extra fees. Also, never leave it until the last minute to get foreign currency from an airport bureau de change. The 'walk up' exchange rates at these desks tend to err on the pricey side: ordering the money you need online through your bank before travelling will be at much more wallet-friendly rates. Plus – if they're like Barclays – the cash could be delivered to your home free of charge2 too. *Representative example: 28.9% APR representative (variable); purchase rate 28.9% p.a. (variable); based on a £1,200 credit limit. The approval of your application depends on your financial circumstances and borrowing history, so do the terms you may be offered. The interest rates may differ from those shown. T&Cs apply. It's a dilemma we've all faced on holiday. After finishing dinner, the waiter brandishes a card reader, asking: 'Do you want to pay in local currency or pounds sterling?' Generally, the best advice is to pay or withdraw in the local currency, as it'll mean your UK bank will calculate the conversion rate. Opt to pay in pounds and the local bank will do the conversion – usually at less favourable rates. The safety net of travel insurance might make common sense (we've all read horror stories about British holidaymakers who failed to get it, then forked out thousands of pounds for a medically-assisted flight home, right?), but ploughing through endless comparison sites to find the right quote isn't fun. In many cases, it's best to take heed from experts. The Barclays Travel Plus Pack3 (£22.50 a month) was named a Which? Best Buy travel insurance in June 2024. The policy was lauded for its £10,000 missed departure cover and being one of the few policies to cover pandemics. As with all travel insurance, always check the details. Some policies may not include children or pre-existing medical conditions; others won't include extreme sports such as bungee jumping, parkour or tightrope-walking. Travelling to the EU or US this summer? Then consider Barclays travel wallet4 (available via the Barclays app5), which enables you to buy Euros and US dollars before travelling – which you can then spend with your regular debit card while away. Because you've purchased the currencies already, you'll enjoy fee-free transactions during your trip too6. Then, once you've arrived back home, you won't be saddled with lots of coins destined to end up in a drawer, because Barclays will buy back any foreign currency left over at 0% commission. To find out more about keeping on top of your travel finances with Barclays, visit 1 You must have a Barclays or Barclaycard account, have a mobile number and be aged 16 or over to use the Barclays app. Terms and conditions apply. 2 £2,500 is the maximum amount that can be ordered and delivered to an individual residential address in a 90-day period. Please note, you cannot exceed £5,000 per person within a 90-day period. 3 Terms, conditions, exclusions and eligibility criteria apply. You must have a Barclays current account, be 18 or over and hold this product for at least six months from the date of purchase – then you can cancel at any time. 4 T&Cs apply. You need to be 16 years or over to access this product or service using the app. 5 You must be 11 or over to use the app. T&Cs apply. 6 No transaction fees apply when paying with Euros and US dollars from your travel wallet. There is a 2.75% margin applied when purchasing your currency. If you pay in British pounds on your debit card while abroad, a transaction fee will still apply.
The Sun
24-05-2025
- Business
- The Sun
Holiday warning to millions over button you should NEVER press when paying abroad
HOLIDAYMAKERS should be mindful to never push this button cash machine when heading abroad this summer. Travellers might end up losing cash and get stung by simply making the wrong choice at a foreign ATM or at tills. 1 Cash machines will usually give you the option to pay in the local currency or in pounds. It may seem like the obvious option to pay in pounds, as it's more familiar and the currency linked to your card. However, by choosing this option you could end up paying more for the cash coming out of the ATM or for the goods you're paying for at the till. That is because the overseas bank will do the conversion to pounds and the rates are unfavourable. However, if you choose to pay in the local currency your card will instead do the conversion which is usually much more favourable. So if you are keen to save cash when abroad, you should opt to pay in the local currency and not pounds. Your bank may also charge you for using your debit card abroad. For example, Lloyds Bank charges customers who use their debit card abroad a 2.99 per cent foreign transaction fee. This would cost you £2.99 for every £100 you spend. NatWest also charged customers a 2.75% fee for spending your debit card abroad. That would add a £1.16 charge to the cost of a jacket which cost £42.16. The bank has a handy calculator for customers to help them work out how much they will be charged when spending abroad. You simply enter in the currency you will be shopping in and how much you intend to spend. This can help holidaymakers plan ahead not be blindsided by any unexpected costs. But some banks don't charge you for spending abroad. For example, Monzo does not charge its customers foreign transaction fees nor does First Direct. USING YOUR CREDIT CARD ABROAD Many credit cards also charge foreign transaction fees of around 3%, which would add £1.50 to the cost of a £50 meal out. But there are several credit cards that let you withdraw money from ATMs or spend in shops and restaurants fee-free. The Barclaycard Rewards Card does not charge you transaction fees when you are abroad. It uses Visa's exchange rate, so you will get the best value on conversions. If you are heading abroad, if may also be worth bringing some cash in case of emergencies. Many high street banks have currency exchanges within the branch, and you can also find the service inside airports or some train stations. Are there other options to for spending abroad? There are several specialist cards that can give you a great exchange rate. These cards include travel credit cards and pre-paid cards which can let you pay abroad without fees or at a set exchange rate. Senior Consumer Reporter Olivia Marshall explains all the options. Travel credit cards: Travel credit cards allow you to spend money abroad without being hit by any fees or hidden charges. But, they may still charge you for taking cash out. We recommend the Halifax's Clarity Card as it won't charge you for using it abroad, nor are there any fees for withdrawing cash. But you will be charged interest if you don't repay your balance in full at a rate of 19.9 per cent. And you will be charged interest on cash withdrawals until your balance is paid off too, at a rate of between 19.9 and 27.95 per cent depending on your credit score. In other words, just because you are using plastic abroad doesn't mean you don't have to pay these credit cards off like you normally would. Always pay off your balance before the end of the month with these cards to make sure that any money you saved isn't wiped away by paying interest. For more on travel credit cards you can read our guide here. Pre-paid cards: An alternative to carrying cash around is to get a pre-paid card. These cards allow you to put a set amount of cash on the card at a fixed exchange rate. So if the rate is good at the moment, you can put money on your card and it will stay that rate when you are on holiday. Just keep in mind that these cards can sometimes have hidden costs and charges so be sure to read the small print.
