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People planning trips abroad have been warned about fees that are often charged by credit card companies for overseas use.

Martyn Hocking, the editor of Which? Money said that charges for using a credit card abroad can often be as much as 3% of the purchase.

Speaking to BBC Two's Working Lunch programme, Mr Hocking said: 'The vast majority of credit cards, every time you make a purchase abroad, will add on a foreign exchange loading fee. That is typically 2% to 3%. So every time you spend £100, £2 to £3 is automatically added on by the credit card company.

'There are ways you can avoid it, principally choosing a different credit card.'

There are 'noticeable exceptions' to the rule, Mr Hocking said, including cards provided by Nationwide and the Post Office.

It is not only overseas purchases that can incur charges, holidaymakers were warned, as withdrawing money from cash machines can also carry an additional fee.

One way for travellers to ensure that they do not need to rely on their credit card is to create a holiday budget so they know how much money to take on their trip.

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