Brits are being urged to keep an eye on their bank balance when abroad, as one thing could see a spike in their costs. Payment planning should be as important as packing your passport, according to an industry expert who has flagged the leading cash problem when travelling abroad.

Alex Dyer, managing director at Ski Vertigo, explained that the 3% charge fee for using certain debit cards abroad could make all the difference. He said: “Current consumer guidance says debit-card use overseas can carry a currency exchange fee of around 3%, plus a spending or cash fee on each transaction.

“Check purchase charges, withdrawal charges, ATM limits and credit-card cash interest before departure. Repeated small withdrawals can multiply fixed fees.

Experts say carrying cash is still crucial, not just because some countries still rely on it but because it will help ease bills and charges incurred by using your card abroad.

One issue Brits may not be aware of is that smaller towns and taxi rides may not accept card payments. Even if they do, the service and signal in those areas may be so poor that the card cannot connect.

Mr Dyer said: “Payment planning should sit alongside passports, insurance and airport transfers. Check your card terms before leaving, learn how people normally pay at your destination and keep a backup option separate from your main wallet.

“A modest amount of usable local cash can prevent problems with tips, taxis or small businesses, while the right card for your circumstances can be useful for larger spending. This is general preparation rather than personal financial advice, so travellers should compare current terms and decide what suits their own trip.”

The team went on to note that arranging local currency before travel is crucial. They said: “For currencies that are readily and legally available in the UK, compare the total amount you will receive and order a modest sum ahead.

“Under its stated assumptions, one current consumer comparison put the sterling cost of $1,000 at £751 through the cheapest bureau it found, compared with £909 for an unpreordered airport exchange. For restricted currencies, make a lawful plan to exchange or withdraw after arrival.”