A Scots holidaymaker has warned people of a trick to save money while withdrawing cash from international ATMs on holiday.
James, who posts as @jamesycottar TikTok, posted a clip titled “avoid foreign currency bank scam”.
In the video, he explains how bank machines will offer a lower conversion rate on currency than you should be getting, Glasgow Live reports.
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He explained: “If you have ever used your bank card on holiday to take out cash, then there’s a fair chance, like me, you’re doing it wrong.
“Someone much smarter than me - aka my girlfriend - told that any time you use your bank card to take money out abroad, the bank will offer you a conversion rate for that currency.
“Never accept it because they are getting commission off this and it’s always going to be a higher rate.”
James adds that people are then offered a mysterious ‘second rate’ when holidaymakers hit decline on the bank machine - but the bank will not tell you how much that is.
He goes onto claim that the second option will be ‘guaranteed’ to be lower.
“Do this and you will save money, and that’s a fact”, he said.
The Scots tourist isn't the only one to share the trick with Money Saving Expert's Martin Lewis also telling people to keep their eyes peeled when using an ATM.
Martin Lewis warned travellers that some cash machines will charge additional fees - even if you’re using a special overseas card - adding they can carry a 4.5% mark-up fee resulting in you being charged on top of the exchange rate plus a fee for using the machine.
Martin explained: “Even the worst card, never mind my specialist card that gives perfect rates, only adds a 3% conversion [fee].”
The financial guru tested several ATMs all of which had conversion mark-ups of up to 4.5%.
Martin continued: "So, you do not want this machine to do the conversion for you, you want your card company at home to do the conversion because even if it's not a good card, it's at a better rate."
He then warned that cash machines may use "psychological scare tactics" to persuade someone to use their conversion rates by using an onscreen prompt which states “if you do not accept this option, we cannot guarantee the exchange rate offered”.
Martin also did the maths to show that withdrawing money without allowing the ATM to do a conversion cost £169.20, excluding the ATM fee, but using the machine’s rates would have cost him up to £191.
Martin advised: "Do not pay to pay.
“When you got into a shop, when you go to a cash machine and it says 'do you want us to do the conversion for you' - no, no, no - pay in the local currency.”
Taking to the comments many people thanked him, and his partner, for the handy tip with many totally unaware whilst others had first heard the tip through the MSE guru himself.
One said: "100% keep selecting no bank will ask for covert, select no, then the bank will either offer a 2nd offer or ask if you are sure. Decline both offers."
Another added: "Omggg...then you get me accepting it without reading the whole thing."
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