Martin Lewis issues warning about using your bank cards abroad

Martin Lewis has issued more than a dozen tips on saving cash during your summer holidays. And one of them concerns simply using your debit or credit cards overseas.

The summer months are just around the corner and with that, millions of Brits heading abroad for a holiday in the sunshine, sipping cocktails on the beach.

Spain will be the destination of choice for most UK residents - although a warning has been issued ahead of expected blistering heat. There's also updated passport rules for Brits heading to Spain, as stated by the Foreign Office.

On the topic of saving cash when abroad in the likes of Spain, Lewis and his Money Saving Expert (MSE) team say you can 'save hundreds' if you follow their advice.

"It's time to STOP PAYING TO PAY when you go abroad," the MSE team writes in its email sent to subscribers last night (21 May).

"There are many hidden charges, so most people overpay every time they spend.

"Yet it only takes a few minutes to sort it - whether for the coming half term, or more likely the rapidly approaching summer holiday - and get peace of mind you're getting the max bucks (or baht) for your bang."

Martin Lewis using a cash machine in Spain (ITV)

Debit and credit cards abroad

On the topic of debit and credit cards, the warning is simple.

By using them overseas, you're spending extra than the amount you think you're paying.

Lewis' team say: "Spend in a foreign currency on plastic and most banks add a 3%-ish fee - technically the 'non-sterling exchange fee' - to the near-perfect exchange rates they get.

"So £100 worth of euros/dollars etc costs £103."

So, if you spend £2,000 with your bank cards while abroad, you're giving over an extra £60-ish. Not a whole lot in the grand scheme of things but 60 quid better off in your pocket, that's for sure.

Martin and his MSE team are urging you not to use your standard debit and credit cards overseas (ITV)

The way around it

The good news is it is pretty straightforward to make sure you don't spend the extra.

The answer is to get yourself a travel card. The MSE team says: "If you're planning an overseas trip, or regularly buy from overseas websites, a specialist travel credit or debit card is one of the cheapest way to spend as it gives near-perfect exchange rates worldwide."

You can actually end up saving money, given that some of the best deals on these come with cash back on spend.

Paying with your cards abroad is far more common than it used to be (Getty Stock Images)

Make money with the right deal

The MSE highlights the Chase Mastercard debit card, with has one per cent cash back on up to £15 every month.

There's also the Halifax Clarity Mastercard credit card, which will give you £20 back on your first overseas or UK purchase. And there's the Barclaycard Rewards Visa credit card, which has a 0.25% cash back feature on almost every overseas or UK purchase.

"Are there other near-perfect rate cards? Yes, but the ones above are our top picks, mainly due to the cash back," Lewis says.

"However, if you've a First Direct 1st Account, Monzo, Nationwide (FlexOne, FlexPlus, FlexStudent, FlexGraduate), Santander (Edge, Edge Up, Zero), Starling, and some NatWest and Virgin Money credit cards, then you're doing pretty well anyway, so there's no urgent need to switch."