Holidaymakers travelling to the
Canary Islands and other popular destinations have been advised to avoid using their debit cards.
According to foreign exchange provider Caxton FX, one of the cheapest options for travellers is to use a prepaid currency card.
"It looks and acts like a credit or debit card but is preloaded with cash (similar to a pay-as-you-go mobile phone.) It charges no application fees, no monthly fees, no transaction fees and no ATM fees overseas," the company noted.
Those using a debit card to make transactions when abroad may find that they incur a fee, with some providers levying a penalty charge of £1.50, according to Caxton FX.
A recent study by the Post Office found that British holidaymakers are wasting millions of pounds every year because they are unable to convert the cost of goods into sterling and do not know how much they are spending when abroad.
Written by Claire Manning
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