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British holiday- makers are heading abroad with a spring in their step thanks to attractive exchange rates and more choice than ever when it comes to how they carry currency around – cash, prepaid cards and credit and debit cards. 

But there is one choice they will be offered abroad that could end up costing them, if they aren’t educated to choose wisely.

Dynamic Currency Conversion (DCC) is a little-known charge on foreign transactions that is still catching holidaymakers out but luckily there is a rule of thumb that is easy to go by. For agents keen to always go that extra mile for their customers, passing on a handy tip could go a long way in terms of return custom, positive sentiment and good word of mouth.

When a consumer pays a bill abroad using a credit, debit or prepaid card, they may be given the option to pay in the local currency or in their own currency.

If they choose their own currency they could be hit with hidden charges because the retailer or ATM will apply their own conversion rate – and this can be vastly different from that of their card issuer.

By opting to pay in the local currency, the holidaymaker’s card issuer will convert the money at a rate that many will publish in advance. For those customers who have already loaded a prepaid card in the local currency opting to pay in that currency saves them from a second conversion fee. By always opting to pay in local currency, holidaymakers could save themselves money at every transaction.

For most consumers, it can be tough navigating the FX landscape and making sure they get the most for their money while abroad – and this is one example where choosing is not always straightforward.

For agents and travel industry professionals now, the line of service to holidaymakers doesn’t just stop with the booking of a holiday. Agents are also proving great service on everything from where to go when they arrive at their destination, the ways to get the most out of their trip depending on their interests and hobbies and most importantly, how to get the most for their money.

By passing this piece of advice on to holiday-makers at the time of booking a holiday, buying currency or even just making an enquiry, agents and TMCs will be offering their customers a handy tip that will stay with them during the course of their trip and future ones to come.


Robert Darby - Head of Partnerships - Travel

For information on the Escape Travel Money Prepaid MasterCard Card programme from Tuxedo, visit, call 020-3219 3103 or e-mail