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Home » TRAVEL NEWS » Morocco, Japan, China and India Highlight Urgent Travel Money Warning as International Visitors Risk Expensive Credit Card Pitfalls Overseas Friday, June 27, 2025Travellers heading to Morocco, Japan, China, and India are being urged to rethink how they access money abroad, as these destinations present unique challenges that could lead to costly mistakes. Financial experts have warned that using credit cards for cash withdrawals overseas can result in steep hidden charges, including high interest rates, ATM fees, and immediate cash advance penalties. In countries where cash is still king or where foreign cards face usage restrictions, tourists relying on credit cards risk overspending and financial stress. Understanding these risks is essential for global holidaymakers aiming to manage travel money wisely and avoid unnecessary financial setbacks.Credit Card Alert for UK Holidaymakers: Why Withdrawing Cash Abroad Could Be a Costly MistakeBritish travellers heading abroad this summer are being urged to think twice before using their credit cards to withdraw cash while overseas. A leading finance expert has issued a clear warning that using a credit card at foreign ATMs could end up costing far more than expected, leading to avoidable charges and unnecessary debt.Whether planning a city break in Europe, a tropical escape in Asia, or a cultural adventure in Africa, travellers often face one critical question: what’s the smartest way to access and spend money abroad? While some countries embrace digital transactions and contactless payments, others still rely heavily on cash, making pre-travel preparation vital.However, one mistake tourists are being warned to avoid is withdrawing cash using a credit card while overseas.Avoiding Credit Card Pitfalls AbroadMany travellers mistakenly believe that credit cards offer a flexible, reliable way to access cash abroad. But in reality, withdrawing money using a credit card is considered a cash advance—a type of transaction that often comes with high interest rates, transaction fees, and no grace period.In contrast to typical card purchases, cash withdrawals on credit cards usually start accruing interest immediately, with no interest-free period, even if you pay off the balance at the end of the month. Furthermore, many banks add a non-sterling transaction fee and an additional ATM usage charge, significantly increasing the overall cost.The bottom line? What may seem like a quick cash fix could become an expensive financial burden.Challenges of Currency Access in Popular DestinationsCertain destinations add further complexity when it comes to travel money. For instance:Morocco: Dirhams cannot be obtained in the UK in advance due to currency restrictions. Travellers must wait until arrival to exchange or withdraw money.Japan: Not all ATMs accept international cards, and travellers often need to locate specific machines—usually found in convenience stores like 7-Eleven—that support foreign transactions.China: While high-end hotels accept major international credit cards, many local businesses and street vendors rely heavily on Alipay and other domestic mobile payment platforms.India: Smaller shops, eateries, and local service providers may not accept foreign-issued cards, creating obstacles for tourists who rely exclusively on digital payments.Given these limitations, many travellers are tempted to withdraw cash directly from ATMs using a credit card. Yet, doing so could result in excessive charges and steep interest fees—especially over longer travel periods.Better Alternatives for Travel SpendingInstead of resorting to credit cards for cash withdrawals, there are more cost-effective ways to manage your travel money:Travel Debit Cards: Specialist travel debit cards offer competitive exchange rates with no foreign transaction fees. These are usually linked to app-based accounts that allow easy loading and management.Prepaid Travel Cards: These cards allow travellers to load money in advance, lock in exchange rates, and use them as they would a debit card. They help control spending and eliminate many typical foreign transaction fees.Cash in Local Currency: Where necessary, it’s still wise to carry some local cash—especially for small vendors, transportation, or tipping. Be sure to exchange money at reputable providers or use a trusted currency comparison tool to get the best rates.Fee-Free Credit Cards: Some credit cards are designed specifically for overseas spending, with no foreign exchange fees and interest-free periods on purchases (but not on cash withdrawals). These can be ideal for hotel bookings, car rentals, and secure large transactions.Think Before You WithdrawTravellers should also avoid using their credit card to purchase cash at exchange bureaus or to top up prepaid currency cards, as these transactions may also be treated as cash advances and subject to high interest.Being smart about spending abroad isn’t just about convenience—it’s about avoiding unnecessary fees, protecting your finances, and enjoying your trip with peace of mind.To make informed decisions before departure, holidaymakers are advised to consult online travel money comparison platforms to find the best exchange rates and card options tailored to their destination.Travellers visiting Morocco, Japan, China, and India face serious financial risks when using credit cards for cash withdrawals, as hidden fees, currency restrictions, and limited card acceptance can lead to costly mistakes. Experts urge global tourists to choose smarter, fee-free alternatives to avoid unnecessary charges abroad.Final ThoughtAs the holiday season kicks off, UK tourists should equip themselves with the right financial tools. Withdrawing cash using a credit card abroad may seem harmless, but the hidden costs can quickly stack up. By choosing smarter, fee-friendly alternatives and planning ahead, you can enjoy your getaway without coming home to an unexpected credit card bill.

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