Beware this £5m Spanish practice says AM

12.00.00am BST (GMT +0100) Tue 15th Jul 2008

The Welsh Liberal Democrat Assembly Member for South Wales West, Peter Black has called on holidaymakers to be wary of how they use cash machines in Spain after a national newspaper at the weekend revealed a practice which could cost them money.

Spanish banks are setting up their cash machines to ask UK customers if they want to pay for the money they take out in pounds or Euros. It asks them to 'press yes for GBP, no for EUR.' The natural reaction is to get a clearer idea of just how much is being withdrawn by pressing 'yes'. However, if someone does so, they run the risk of getting a poor exchange rate, with the profit going back to the Spanish bank concerned.

"Some Spanish retailers and hotels already do the same thing with staff having instructions to offer this 'service' to UK customers," said Mr. Black. "The Nationwide Building Society has calculated that the additional cost to Brits holidaying in Spain is as much as £5 million a month.

"The companies who sell the technology are quite clear that the purpose is to squeeze out more money for banks and retailers, not to help the customer. Welsh holidaymakers in Spain this summer should remember to 'just press (or say) no'."