Nearly half of British holidaymakers are being hit by card fees when spending abroad, new research has revealed.
A survey by InsureandGo shows that 47 per cent of travellers are falling into expensive payment traps without realising it.
The losses add up to more than £26million every day in unnecessary charges.
Researchers say the money could be spent on meals out or activities rather than lining the pockets of payment processors.
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Despite people setting aside more than £100 a day for their trips, these hidden fees are eating into holiday budgets in ways many do not spot until it is too late.
The main issue is dynamic currency conversion.
When paying abroad and given the choice to pay in pounds or the local currency, many holidaymakers select pounds, thinking it is safer.
However, the option can add up to 18 per cent in hidden fees to purchases.
However, the option can add up to 18 per cent in hidden fees to purchases
|GETTY
That means a €50 meal can suddenly become significantly more expensive when converted into pounds at checkout.
The survey of 1,500 UK travellers found that 47 per cent regularly make this error, choosing pounds without realising they are paying extra for the convenience.
The financial impact goes well beyond individual purchases.
With 39 per cent of Britons relying on their regular bank cards rather than travel-friendly alternatives, 3 per cent foreign transaction fees quickly add up.
Around 35million UK adults travel abroad each year, spending about £100 daily and making most payments by card
| Getty ImagesAround 35million UK adults travel abroad each year, spending about £100 daily and making most payments by card.
Researchers say these small charges compound into a £26million loss every day.
Two in five holidaymakers run out of their planned spending money while abroad.
Many are budgeting carefully but are still caught out by fees they did not know existed.
More than a third of travellers have also experienced having their card declined overseas, forcing them to find alternative ways to pay.
Airport currency exchanges remain common, used by 36 per cent of people, despite typically offering the poorest rates.
Meanwhile, 37 per cent admit they do not compare exchange rates before converting cash.
Two in five travellers say they find exchange rates confusing.
Half of holidaymakers feel they are losing money whenever they exchange currency, and researchers say they are often correct.
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Security concerns add to the stress, with 54 per cent of Britons worried about using cards abroad
| GettySecurity concerns add to the stress, with 54 per cent of Britons worried about using cards abroad.
Letitia Smith, Head of Communications at InsureandGo, offered advice on avoiding the most expensive mistakes.
She said: "Our research shows that a huge percentage of travellers feel financially vulnerable when heading abroad."
Ms Smith suggests researching banks that offer cards designed for overseas spending, which often waive foreign transaction fees entirely.
She also recommended using holiday spending apps to track money more accurately whilst abroad, always choosing to pay in local currency, checking your card’s fees before travelling and considering a specialist travel card.
Experts say these steps could save hundreds of pounds during a single holiday.