Why you shouldn't pay in sterling on holiday
Brits are being warned against paying in pounds while abroad, it has been reported.
It's thought that those opting to be charged in pounds sterling when paying for meals and hotels while on holiday are facing more charges than they believe.
According to Mail Online consumers are being forced to pay as much as 4% more when using their bank cards abroad.
These Dynamic Currency Conversion (DCC) rates are said to benefit both the bank and sellers.
However it's not all bad news as there is a way to combat this problem. When you withdraw money from an ATM while away, make sure to choose the local currency.
In doing this tourists won't be charged the extortionate DCC rates that are racking up our spending.
ETN warns that Brits are being 'routinely ripped-off' as a result of these little-known charges.
James Hickman, managing director of currency specialist firm Caxton FX, told Mail Online: "When your bill arrives at a restaurant for example, you may be offered the facility to pay in pounds rather than the local currency. This could incur a service fee of up to four per cent of the value of the transaction which can legally be charged."
Pound Sterling Live has reported today (Monday) that the euro-sterling exchange rate has dropped below 1.40 and is expected to reach 1.36 while the euro-dollar rate has moved past 1.14.
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