When you’ve worked hard to save up for a holiday abroad, thoughts about spending money while you’re away might not cross your mind.
The reality is that for every day you’ll be on holiday you will need (and likely want to) spend money on things such as food or entertainment. There may also be potential unexpected costs that may leave you out of pocket.
Unfortunately, it’s often not possible to use your debit or credit card as normal abroad without being charged extra. This can include conversion fees for foreign currencies or charges for using a cash machine.
So before you hit the beach, we’ve put together some hacks on how to spend money abroad without facing high charges.
Bank Accounts for Using Abroad
When it comes to choosing a bank account you can use abroad, you can either opt for a familiar high street bank or choose an online-only bank.
Tip: Check if your existing bank offers 0% fees for international purchases, as this may be the best bank card to use abroad since you won’t need to open any new accounts elsewhere.
Chase - The Chase Current Account is a debit card you can use abroad without any fees. There is a withdrawal limit of £500 per day or £1,500 per calendar month in the UK or abroad. However, an advantage of this card is that you’ll get 1% cashback on all purchases.
Monzo - Monzo is a Mastercard debit card, which doesn’t charge any fees for using your card abroad if you stay within the limits. If you move your main bank account over to Monzo, you can make free cash withdrawals in the European Economic Area (EEA). Outside of the EEA, you can withdraw up to £200 a day without being charged extra fees.
Revolut - Revolut has several cards available, although zero international fees are only available on the Ultra card at £45 per month. However, the Standard card is free and allows for up to £200 of withdrawals abroad for free. You can also get up to £1,000 worth of free currency exchange on the Standard plan.
Starling Bank - Starling Bank has a current account that doesn’t charge any fees for using your card abroad. It also has lots of useful add-ons to manage your money, such as the ability to block transactions relating to gambling.
Wise - Wise charges between £1.03 and £1.90 for every €250 you send, spend or withdraw abroad. Although this isn’t free, comparable rates for other major banks are far higher according to a comparison table found on the Wise website. There are also other benefits that may make a Wise account more suitable for your needs. For instance, the ability to connect to Apple Pay.
Travel Credit Cards & Debit Cards
Many high street banks offer credit and debit cards that they market as ‘travel cards’. This means the card has specific features that make it ideal for using abroad, such as zero transaction fees.
If you have a good credit score, a travel credit card can sometimes offer more advantages. For instance, some credit card providers throw in free travel insurance, and you’ll usually get better buyer protection for any purchases made on a credit card.
Barclays - Barclays offers a feature called ‘Travel Wallet’ where you can use your Barclays debit card as normal abroad without any fees. You will need to purchase any travel money and manage your account through the Barclays app to use this feature. You can also convert and sell back any travel money through the app.
Halifax - The Halifax Clarity credit card won’t charge you any fees for using your credit card abroad or for withdrawing cash. As it’s a Mastercard, it is a widely-accepted card. Your credit limit is subject to status and you must be employed with a regular income to apply.
NatWest - NatWest have several cards that can be used abroad without being charged, although fees can apply for making cash withdrawals. The Natwest Credit Card is one such option and doesn’t charge any annual fees.
Santander - The All in One Credit Card from Santander does not charge any foreign transaction fees so long as any purchases are made in the local currency. This card does have a £3 monthly fee, although offers up to £10 a month cashback on all purchases.
Prepaid Cards
Travel credit cards aren’t going to be the right fit for everyone, especially if you aren’t comfortable owning a credit card, or don’t qualify for one due to a poor credit score.
Don’t worry, as another option to consider is a prepaid travel card.
As the name suggests, prepaid travel cards allow you to preload an amount onto a card. Usually, the card is connected to an app so that you can make top-ups. You can also cancel the card if it gets stolen, which you can’t do if you take the same amount on holiday in cash.
Because you aren’t borrowing money with a prepaid travel card, you don’t need to do a credit check and your credit score also won’t be harmed.
Lots of retailers offer prepaid travel cards, including:
- Asda
- Easy FX
- Eurochange
- Mastercard
- Post Office
- Sainsbury's
- Travel FX
As with any type of card, you do need to read the small print to find which card would work best for you. For instance, look out for charges or fees that may apply depending on how you plan on using the card.
Top Tips for Spending Money Abroad
Making cash withdrawals: It’s generally a bad idea to withdraw cash on your debit or credit card abroad, as you’ll be charged extra fees. Some prepaid cards will also charge a fee for a cash withdrawal unless otherwise stated.
Using a credit card: Never allow the amount you spend to go over what you can afford to pay back in full. Set up an auto-repayment so that the money will automatically be paid with zero interest.
Most credit cards also have an app so that you can carefully track the balance as you spend. But, be aware that there can sometimes be a delay in showing your outgoings when you spend money abroad or during the holidays, so you should also keep a mental note of anything you’ve spent.
Pay in the local currency: If you’re outside of the UK and you are given the option to pay in GDP (£) or the local currency, always opt for the local currency. This is to avoid being charged conversion fees. For instance, if you are in Spain then pay in Euros, or if you are in America pay in US Dollars.
Travel Cards FAQs
Which Banks Don't Charge for Using a Debit Card Abroad?
Barclays, Chase and Starling Bank all offer debit cards that can be used abroad in terms of making purchases without fees. There can be charges for making cash withdrawals, so you need to check with the applicable bank. However, these three banks also give you the option of avoiding a credit card when travelling if you currently aren’t eligible for more credit.
What is the Best Bank Card to Use Abroad?
The best bank card to use abroad is any that doesn’t charge you fees for spending internationally. Ideally, it should also offer free cash withdrawals in case you need to pay in cash while on holiday. The card should not have any hidden fees and also provide free customer support that you can access while abroad.
What Can I Use Instead of a Credit Card for Travel?
If you don't qualify for a credit card or aren't comfortable owning one, there are a couple of options to consider. The main thing is to avoid fees from using your debit card abroad. Not taking large amounts of cash on holiday is also preferable in case the money gets stolen. You could consider a debit card that has travel perks (i.e. no transaction fees for foreign purchases) or a prepaid travel card instead.
Credit Card With No Transaction Fee Abroad - What to Look Out For?
The easiest way of finding a ‘no transaction fee abroad credit card’ is to search specifically for travel credit cards. Then, check the details of the card to ensure that no transaction fees are charged when you use the card internationally.
Please note; the information is accurate at the time of writing (September 2024) but is subject to the banks changing their rates.
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