Money Travel Guide – Save More on Holiday Money
Spanish Money Travel Guide – Best Exchange Rates & Travel Tips - Most of us only get to go away once a year, so it’s crucial to get the best deal when exchanging your money into foreign currency. Spending wisely on exchange means you have more left for holiday treats and experiences.
Whether you’re taking a prepaid currency card, cash, credit card, or traveller’s cheques, here are the essential tips to make the most of your hard-earned money abroad.
Should I Pay in Sterling or Local Currency?
✅ Always pay in the local currency.
When shopping or withdrawing cash abroad, you may be asked if you want to pay in pounds (GBP) or the local currency (e.g. euros). Always choose the local currency.
Why?
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Paying in pounds uses dynamic currency conversion, where the foreign bank or store sets the conversion rate – usually at a poor rate with hidden fees.
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Paying in euros lets your home bank or card provider do the conversion, often at a better exchange rate.
🔔 Tip: Check the payment screen or receipt before entering your PIN to ensure you’re charged in the local currency.
Spanish Money Travel Guide
💳 Watch Out for Dynamic Currency Conversion Fees
While dynamic currency conversion seems convenient because it shows prices in GBP, it costs more due to poor exchange rates. Retailers may default to this option unless you ask to pay in local currency.
✔️ Always confirm before paying
✔️ Say no to GBP billing abroad
✔️ Demand payment in local currency
🪙 Paying with Coins Abroad
Did you know there’s a limit on how many coins you can use in a payment?
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Under EC Order 2169/2005, payment is limited to 50 coins maximum per transaction.
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For example, the largest payment with coins is €100 (50 x €2 coins) and the smallest is €0.50 (50 x 1 cent coins).
📝 Only the Bank of Spain and the European Central Bank must accept unlimited coins.
📈 Keep an Eye on Exchange Rates
Exchange rates fluctuate daily. Check rates regularly to understand what a good value exchange rate looks like.
👉 See today’s exchange rate in Benidorm here.
🚨 ATM Scams and Using Credit Cards Abroad
Credit cards are widely accepted for purchases and cash withdrawals abroad. However, be aware of:
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Currency conversion fees
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Cash advance fees for withdrawals
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Interest charges on cash withdrawals
💡 Tip: Some card providers allow you to pre-load money to avoid cash advance interest – check with your bank before you travel.
💼 Prepaid Travel Money Cards
Prepaid cards are offered by major banks and companies.. You load money onto the card before travel and use it like a debit or credit card.
✅ Benefits:
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Lock in exchange rates when loading the card
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Replaceable if lost or stolen
❌ Fees to check:
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Exchange rate margins (often hidden)
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Loading fees (percentage or flat fee)
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ATM withdrawal fees
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Fees for using currencies not loaded on the card
🔍 Always read the terms and conditions carefully to avoid unexpected charges.
Spanish Money Travel Guide
🏧 Using ATM and Debit Cards Abroad
Most UK banks offer debit cards for international use. Withdrawals are directly deducted from your account with no interest unless you overdraw.
Things to note:
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ATMs in Spain are called “cajero automático” or “cajero.”
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Daily withdrawal limits set by your UK bank still apply abroad.
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Typical ATM withdrawal caps in Spain range from €300–€1,000 per day.
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Notify your bank before travelling to avoid your card being blocked for suspected fraud.
💰 ATM fees in Spain:
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Usually €0.50 to €0.80 per transaction, but some machines can charge up to €6.
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Use ATMs at main bank branches rather than standalone ATMs to save on fees.
🔒 Traveller’s Cheques
While less common today, traveller’s cheques are a secure backup. They can be replaced if lost or stolen and some foreign exchange providers refund unused cheques without charge.
✔️ Keep a record of cheque serial numbers (stored separately).
✔️ Check fees – both purchase and encashment fees abroad can apply.
🌐 Ordering Currency Online
Ordering online is convenient and can secure better rates. However:
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Check delivery times and charges.
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Some companies waive delivery fees if you exchange over a certain amount (e.g. £500).
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Picking up from a local branch can avoid delivery fees entirely.
🔔 Tip: Some banks offer special rates for existing customers – check before ordering.
🛡️ Travel Insurance Cash Limits
Avoid taking too much cash abroad, as there’s a limit on how much your travel insurance will cover. For example, if your policy covers £250 and you lose £500, you only receive £250 minus any excess.
💷 Leftover Currency
If you return with leftover currency:
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Check if the company charges commission to buy it back.
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Compare buy-back rates to avoid losing out on conversion differences.
✅ Final Money Travel Tips
✔️ Always pay in local currency
✔️ Watch out for dynamic currency conversion fees
✔️ Choose cards with low foreign fees
✔️ Check exchange rates before buying
✔️ Limit cash for safety and insurance coverage