Travel question of the day: Simon Calder on how to pay for hotels abroad

Have a travel question that needs answering? Ask our expert Simon Calder

Pay for hotels in Hong Kong dollars and check your card's foreign transaction fees

Q In November I will be staying in a hotel in Hong Kong. Is it better to pay my bill by debit card or credit card?

Richard Hine

A If you have one of the very rare debit cards that has no charges for use abroad, then by all means use it – but assuming it is like the vast majority of cards, you will be paying dearly for the privilege. Santander, for example, says: “You will be charged a non-sterling transaction fee of 2.75 per cent of the value plus a non-sterling purchase fee of £1.25 for each transaction.”

Credit cards don’t usually have a transaction fee, but a “foreign exchange loading fee” of up to 3 per cent is often applied. I have a Halifax Clarity card for use abroad – it has no such fee. Metro Bank also offers this facility, as do some other providers. You can’t tell the rate that will be applied – but it will certainly be better than that offered through “Dynamic Currency Conversion”. So if you are offered the chance to pay in sterling rather than Hong Kong dollars, politely decline.

Every day, our travel correspondent, Simon Calder, tackles a reader’s question. Just email yours to s@hols.tv or tweet @simoncalder