Millions of holidaymakers have been warned about rip-off credit card fees ahead of the Easter weekend.

Using your credit card to take out money at cash machines whilst abroad could prove expensive, with some cards charging £4.59 in fees on a £20 withdrawal.

Larger transactions could see the relative charge decrease, but can still prove costly, with some costing £7.99 to withdraw £100.

Andrew Hagger, a personal finance expert and founder of Moneycomms, said: “Although credit cards are useful in helping you manage your day-to-day cash flow and cope with unexpected expenses, using them to take cash out at ATMs overseas can be an extremely expensive way of funding your holiday spending.

“Consider a fee-free credit card or a low-cost debit card as an alternative if you don’t want to see a big chunk of your overseas holiday budget swallowed up by cash withdrawal and non-sterling charges.”

How to save money when on holiday

Alistair Douglas, CEO of TotallyMoney, also shared his top tips for making your travel money go further when you are on holiday.

Pack the right card

“Before you go away, double check how much your bank will charge you for using your card abroad. If you’re lucky, you might already have a fee-free option in your wallet — so make sure you stick to using that one. If not, and you’re planning on using credit, then consider applying for a Halifax Clarity or Barclaycard Rewards card —specifically for overseas use. Both offer fee-free purchase and cash withdrawal transactions abroad.”

Go large

“If you need to use your credit card for ATM withdrawals abroad, avoid using it for multiple, low value cash transactions — and instead consider taking out fewer but larger amounts. That way, you can avoid lots of withdrawal fees, which quickly adds up. Let’s say you take out £200 in one go, to cover you for four days, you might incur up to £15.98 in charges. On the other hand, if you take out £50 per day over the four day long weekend, you could end up paying the bank £31.96 — which is twice as much!”

Shop local

“Whenever you’re paying by card, or withdrawing cash, and you’re asked if you’d like to pay in the local currency, you should almost always pick the local currency. Choosing to pay in pounds sterling will lead to currency conversion fees set by the ATM operator or vendor — and worryingly, there’s no limit to how much they can charge.”