What is dynamic currency conversion (DCC)?

DCC is when you’re offered to pay in pounds instead of the local currency abroad. It usually gives you a worse exchange rate — always pay in the local currency.

How can I avoid ATM fees abroad?

Use a travel money card with free ATM withdrawals, take out larger amounts less often, and avoid ATMs that charge local surcharges.

Are airport exchange rates really that bad?

Yes. Airport kiosks are typically 5–10% worse than online rates because of high overheads and last-minute pricing.

The Hidden Fees That Can Ruin Your Holiday Spending Abroad

Updated 20 January 2026 • Read time: ~7 minutes

You’ve booked your flights, packed your bags, and found the perfect hotel — but hidden fees can quietly eat into your spending money abroad. From ATM charges to sneaky card conversions, here’s what to watch for and how to avoid them.

Quick take: Avoid dynamic currency conversion (DCC), use a low-fee travel card, and compare exchange rates before you buy. Small fees add up — sometimes costing more than 10% of your travel budget.

1. Dynamic currency conversion (DCC)

This is when a shop, hotel, or ATM offers to charge you in pounds instead of the local currency. It sounds helpful, but it’s rarely a good deal — the exchange rate used is almost always worse than your bank’s or card provider’s.

Always choose to pay in the local currency (EUR, USD, TRY, etc.) to get the fair rate.

2. ATM withdrawal fees

Some ATMs charge local fees (e.g., €3–€5 per withdrawal).
UK banks may also apply foreign transaction fees or cash advance interest.
Even travel cards can add weekend or reload costs — check your card’s small print.

Tip: Withdraw larger amounts less often and choose fee-free ATMs where possible.

3. Airport exchange mark-ups

Airport kiosks can charge 5–10% more than online or high-street providers. The convenience comes at a price, especially for last-minute travellers. Always compare and pre-order before you travel.

Compare live travel money rates
Live rates from trusted UK currency suppliers – updated every 15 minutes.

4. Credit card “foreign usage” fees

Many standard UK credit cards add a 2–3% foreign transaction fee, plus interest on cash withdrawals. Consider a dedicated fee-free travel credit card if you want Section 75 protection without the extra cost.

5. Poor bank exchange rates

Some high-street banks quietly build extra margin into their exchange rates. Independent currency providers often beat them by several percentage points. Comparing even once can save £20–£40 on £1,000 exchanged.

6. Rounding and tourist pricing

In some countries, small purchases are rounded up when paying by card or cash. It’s minor but can add up over a long trip — especially when paying for snacks, tolls, or tips.

Bottom line

Hidden travel money fees are everywhere — but easy to dodge once you know what to look for. Compare rates, decline DCC, use low-fee cards, and plan ahead.
Those few extra minutes of prep can keep £50–£100 in your pocket for better things — like another meal out on holiday.

Compare live travel money rates
Live rates from trusted UK currency suppliers – updated every 15 minutes.