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Martin Lewis Warns Travellers About Hidden 3% Foreign Card Fee

Lewis says switching to a specialist card can cut the 3% fee most banks add abroad.

Overview

  • His warning, shared in a This Morning TikTok and widely reported Monday, says many banks add a 2.75–3% non‑sterling fee to every overseas card purchase.
  • He advises choosing the local currency at checkout because letting the shop convert to pounds, known as dynamic currency conversion, usually gives a worse rate.
  • To avoid these costs, he highlights specialist cards such as Barclaycard Rewards, Chase, and First Direct, and he urges paying any credit‑card bill in full each month to dodge interest.
  • For cash, he suggests using a UK bureau de change comparison before travel or withdrawing from a local ATM with a specialist card, taking larger sums to dilute small machine fees.
  • He also notes that package holidays generally offer stronger refund protection than separate bookings if flights are cancelled under UK rules.