Martin Lewis reveals whether you should pay in pounds or euros on your credit card while on holiday
MARTIN LEWIS is urging holidaymakers to remember to pay in euros while abroad.
The founder of MoneySavingExpert.com shared the handy tip in his hugely popular weekly email.
Holidaymakers are often given the choice between paying in pounds or euros when using a debit or credit card in Europe, either for withdrawing cash or in shops and restaurants.
If you get it wrong it could add as much as £30 on a €200 transaction.
When you choose to pay in euros your bank or credit card company work out the currency conversion for you.
If you opt to pay in the pound then this calculation, known as the dynamic currency exchange, is left up to the foreign bank, shop or restaurants bank.
It means you could end up paying a much worse rate.
Martin Lewis, founder of MoneySavingExpert.com, said: “The reason is simple, if you pay in euros then your bank is doing the conversion into pounds.
“If you pay in pounds then it’s the overseas cash machine or shop doing the conversion and the rates there tend to be horrible.
“Pay in the local currency, that’s the key”.
Holidaymakers are suffering from an expensive summer, as the pound continues to suffer against most other currencies.
But today, Sterling hit a one-month high against the dollar after the Bank of England's governor Mark Carney hinted that there could be an interest rate rise in the near future.
The pound still remains around 12 per cent lower against the dollar since last June's referendum to leave the EU.
HOW TO GET THE BEST RATE FOR HOLIDAY MONEY
WHEN buying holiday money the best rates won't always come from your bank or even the Post Office or Marks & Spencer.
Use comparison tools like MoneySavingExpert's TravelMoneyMax to compare, pick-up and pre-order rates.
It's also worth checking local independent bureaus on the high street near you.
Some bureaus offer preferential rates if you pre-order or print out a voucher to secure the online rate, rather than walking through the door.
If you need to get money at the last minuite, order online or by phone and pick it up at the airport.
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