Money expert Martin Lewis reveals the one button travelers should NEVER use while abroad

Money expert Martin Lewis has warned Britons that there is one button they should never press while on holiday abroad.

When travelers abroad withdraw money from an ATM or pay with their debit or credit card, they are usually asked whether they want to pay in the local currency or in British pounds.

Martin explained that people should never hit the ‘convert to GBP’ button as there will likely be added storage costs to do the conversion.

On an episode of ITV’s Martin Lewis Money Show, the 51-year-old traveled to Malaga, Spain, and demonstrated how ATMs charge you for making a conversion, noting: ‘[The ATM] says “4.5 percent markup,” so they add a 4.5 percent tax on top of the exchange rate.

“You don’t want this machine to do the conversion for you.

“You want your card company to do the conversion at home because even though it’s not a good card, it’s a better rate. Continue conversion? No way, it’s going to cost me £20 more than it should.’

He added that the machine’s offer to make a conversion is a “psychological scare tactic” that travelers could fall victim to, adding: “Don’t pay to pay.

“If you go into a store, if you go to an ATM, and it says ‘do you want us to do the conversion for you’, no, no, no. Pay in the local currency.’

The TV personality, who founded the website MoneySavingExpert.comalso recommends that travelers acquire a specialized foreign debit or credit card to take advantage of the “near-perfect” exchange rates they offer.

Mr Lewis explained: ‘What normally happens when you spend on plastic abroad is that when you spend on the card the bank or card provider gets a near perfect rate and they add a 3 per cent non-sterling exchange rate surcharge .

“This means you get £100 worth of euros, dollars or dong, which is the Vietnamese currency…but it will cost you £103 because of the extra 3 percent.”

“Continue to repent? No way, it’s going to cost me £20 more than it should,” says Lewis as he withdraws money from an ATM abroad (stock image)

“But the specialty cards don’t add that 3 percent and you get the near-perfect rates that they do.”

According to Mr. Lewis, the specialty cards that are currently worth opting for are the Barclaycard Rewards credit card, the Chase debit card and the Halifax Clarity credit card.

Another way travelers can save vacation money is by choosing a destination where their pound is guaranteed to stretch further in the first place.

Earlier this year, Post Office Travel Money revealed that Cape Town in South Africa will be the cheapest holiday hotspot in the world for Britons by 2023.

It is followed by Marmaris in Turkey in second place and Sunny Beach in Bulgaria in third place. Meanwhile, it was revealed that Reykjavik in Iceland is the most economical holiday destination for UK holidaymakers.

Viewers can catch up on episodes of The Martin Lewis Money Show on the ITVX player.