Why you should NEVER hand over the chip-and-pin machine until after a payment has gone through – it could cost could almost £50
Card machines allow businesses to rip off customers by switching the currency after they've entered their PIN
HOLIDAYMAKERS paying by card when abroad risk being ripped-off by shops and restaurants that manipulate chip-and-pin machines to hit them with hidden charges.
An investigation byt, found that card machines allow businesses to rip off customers by switching the currency after they've entered their PIN.
This means some travellers could end up paying more in pounds, despite explicitly asking to pay in the local currency.
One traveller told MSE that he ended up losing nearly £50 in the transaction as a result.
He said: “My 50 per cent of the bill was €889 and euros showed on the PIN machine. On the way back to the airport I noticed we'd both been charged in pounds.
“This cost us each £45 more than it should have done – €889 was converted to £826 rather than the real exchange rate of £781."
MoneySavingExpert.com managing editor Guy Anker, who was himself twice charged in the wrong currency on a recent holiday to Greece, told the Sun Online that the key point to be careful using your card abroad.
Mr Anker advised travellers to hang on to the payment terminal or keep an eye on it after entering their PIN until the transaction has gone through.
How to make sure you aren't caught out
Here're a few tips from MSE on how to ensure you pay in the local currency
- Hold on to the terminal: Keep hold of it after you've entered your PIN. If you can't, at least keep an eye on it till the transaction goes through
- Always check the receipt: Check your receipt to make sure you were charged in the right currency
- If you find you've been charged in pounds, complain immediately: It will be easier to sort it straight away. According to the UK Cards Association, you should ask for the transaction to be voided, not refunded. You can then start the transaction again.
- If the retailer refuses, or you only discover you've been wrongly charged later, contact your bank or card issuer
Customers should also check their receipt straightaway, so they can complain immediately if they’ve been overcharged.
“It's outrageous that customers who've done their bit in making sure they pay the cheapest way can simply have their currency choice overruled – and there's a real risk this hidden charge is catching out thousands of holidaymakers without them ever realising it,” Mr Anker said.
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Euros can be bought at supermarkets, the Post Office and currency specialists - but rates vary massively.
The best rates can often be found at specialist online outlets, such as Travelex, which will deliver your cash directly to your home.
Travellers can use comparison sites, such as MoneySavingExpert's TravelMoneyMax, to find the best rate.
How to get the best holiday money rate
WE spoke with Hannah Maundrell, editor-in-chief at money.co.uk to find out how you can guarantee the best rate when you go on holiday
- Don’t buy cash at the airport – you’ll always be able to beat the rate with a bit of forward planning
- Compare travel money companies online – Factor in delivery costs and choose the option that gives you the most cash to spend on holiday. If you’ve left it until the last minute order online for airport collection so you get the best of both worlds.
- Use comparison tools – MoneySavingExpert’s TravelMoneyMax enables you to compare pick-up and pre-order rates.
- Don’t pay for travel money with a credit card – it’s likely you’ll be charged a cash withdrawal fee which adds to the cost.
- Top up a prepaid card to lock in your rate now – Choose your card and read the T&Cs carefully as some apply hefty fees. WeSwap, FairFX and Caxton FX are all worth checking out.
- Always choose to pay in the local currency rather than sterling – This will help you avoid sneaky exchange fees
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