Money-saving guru has updated his warning for any Brits visiting Spain this year, as many get caught out by sneaky cash machine fees – even when they think they’re getting a good deal
Don’t get stung by sneaky cash machine fees when abroad – even if you think you’re getting a bargain, Martin Lewis has warned.
Back in the day, your holiday officially started as soon as you headed over to your local travel agent to buy all of your Euros. It was an easy way to know exactly how much cash you had to spend on holiday, and meant you were ready to sit back and relax as soon as you touched down in sunny Spain. However, with a slew of new banks opening in recent years – using ATM machines abroad to withdraw cash is becoming increasingly common.
Providers like Chase, Monzo, and Starling don’t charge fees for using your card abroad (although there may be limits of daily or monthly withdrawals) and have spearheaded a generation comfortable rocking up to the airport without a penny in physical cash. But, just because you’ve got a fancy new bank card – you may still get rinsed by hidden charges…
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In a blog post written in 2013, and updated in April 2025, Martin Lewis issued a clear four-word warning: “Always pay in Euros.” The money-saving guru made the statement after witnessing how people are lured in by misleading promises of ‘0 per cent commission’.
“I couldn’t believe my ears,” Martin wrote. “While filming in southern Spain for the new series of my show, the producer told me he’d found a cash machine offering 0 per cent commission if you chose to withdraw in pounds. In theory, that’d mean PERFECT exchange rates. I checked, and indeed the screen said just that. Yet I smelt a rat.”
The money expert went on to explain that when you use a debit card or credit card to withdraw cash from an ATM or purchase something from a shop while you’re abroad, you’re often given two choices: Pay in Pounds, or pay in Euros. “As you’re charged in euros, your home bank or credit card company does the conversion for you,” Martin explained.
“Typically this is at the Visa/Mastercard exchange rate (which is, basically, perfect) plus a three per cent load – so £100 worth of euros costs you £103. However, if you have one of the specialist cheap travel credit cards, which are load-free worldwide, £100 of euros costs £100.”
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Alternatively, you can pay in pounds – which is also known as ‘dynamic currency exchange’. This means your home bank, or the foreign bank, or the store’s bank if you’re purchasing something from a store – does the currency conversion for you.
Therefore, the ‘0 per cent commission’ does not derive from the Visa/Mastercard wholesale rate, and is actually set by the bank’s own wholesale rate. “Frankly,’ that’s a pile of pants,” Martin added.
The pro gave an example back in 2013 on how an ATM in Spain was charging £91.50 for 100 euros. “But if you’d actually got it at the perfect rate on the day, it would’ve been £86.50 – a huge difference, even on a relatively small withdrawal,” he added.
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