Travellers could be losing a collective £845million in fees from using their bank card abroad.

A study of 2,000 holidaymakers found 45 per cent incurred charges for using their bank card outside of the UK in the last 12 months, with the average annual bill coming in at £21.79 each.

With ONS figures showing 86.2million visits abroad were made by UK residents last year, this means Brits collectively are throwing away hard earned cash for nothing.

The survey revealed the top three holiday experiences that Brits say they can’t usually afford.

With 1 in 10 missing out on whale or dolphin watching, 11 per cent unable to afford a sea-view room and 10 per cent not upgrading flights.

Avoiding unexpected card fees means travellers would have additional budget to put towards these experiences and enhance their holiday adventures.

However, 36 per cent of people have no idea what charges are associated with the debit or credit card they use when away.

The research also found 47 per cent weren’t aware they could be charged while spending on a credit card in local currency, signalling a need for the nation to become savvier about how to pay abroad.

Laura Plunkett, Head of Post Office Travel which commissioned the research to mark the launch of its Travel Money Card across all 11,500 branches nationwide, said: “Our research has not only shown a lack of awareness around bank card fees abroad, but that 21 per cent of people also go over their holiday budgets, which means it’s really important to be aware of any hidden charges that could be adding to that cost.

“While it is possible to pay with your bank card on holiday – lots of banks will charge a fee for every single transaction, which can really add up. Card fees can be avoided by using a pre-paid travel card.

“But it’s not just card fees to consider, exchange rates can also vary daily and also between banks, so if you pay as you go on a bank card, you can never be sure you’re getting the best deal for your holiday money.”

The study found that while 69 per cent of travellers know exchange rates can change daily, over half (54 per cent) didn’t know that different card providers use different rates.

Just one in 20 people know exactly how much their bank will charge them for spending on a debit or credit card while overseas.

It also found 54 per cent have avoided spending money when abroad on a particular card in case they got stung with a charge they weren’t expecting.

As a result, 66 per cent use cash wherever possible when away, with 47 per cent doing so to avoid fees from using a card. But 43 per cent of cash-in-hand spenders claim it helps them track their spend, and 25 per cent feel it’s more secure.

Laura Plunkett added: “Our data shows that despite the world going increasingly cashless, a lot of us are still relying on it to manage our holiday spending money.

“We advise our customers not to leave their holiday cash until the last minute. Exchanging cash at the airport or a ferry port can often mean getting the least competitive rates, and you can get charged if you need to convert any currency back to sterling.

“While some may feel cash is a good way to monitor their spend, a travel money card where you can add a set amount can also be beneficial, especially if you require multiple currencies for a trip – giving peace of mind you won’t incur additional charges or risk losing your main credit or debit card.”

For more information visit www.postoffice.co.uk/travel-money/card