Top cards for travelling abroad
One of the cheapest ways to spend abroad
If you're planning an overseas trip, or regularly buy from overseas websites, a specialist travel credit or contactless debit card is one of the cheapest ways to spend as it gives near-perfect exchange rates worldwide. This guide includes the top-pick travel cards, the cards to avoid, and how to check what your card's charging you.
Travel cards are credit and debit cards that don't charge fees for overseas spending or ATM withdrawals (some ATMs will charge their own fees). The top ones use a near-perfect exchange rate and come with a variety of perks...
Travel credit cards: These give you powerful Section 75 protection, though require a full credit check to open so go via an eligibility calculator to check your acceptance odds. You get interest-free spending, but only if you repay IN FULL each month.
Travel debit cards: These offer the less powerful Chargeback protection, but can sometimes be opened with just an ID check instead of a full credit check.
Barclaycard Rewards Visa Credit Card | - 0.5% cashback on most UK & overseas spend till 30 Nov (0.25% after) |
MBNA Cashback Visa Credit Card | - 0.25% cashback on most UK & overseas spending for 3 years |
Virgin Money Everyday Cashback Mastercard Credit Card | - 1% cashback on most UK & overseas spending for 3mths |
(i) You won't be charged interest if you repay IN FULL each month.
If you do get a card, ALWAYS follow the Credit Card Golden Rules:
a) Repay your balance IN FULL every month, preferably by Direct Debit.
b) If you can't fully repay, never miss the minimum monthly repayment.
c) Always pay in the local currency, not pounds, if given the option.
How do travel credit and debit cards work?
Most credit and debit cards let you spend abroad, but will charge you for the privilege. Although your card provider gets near-perfect rates, it usually adds a foreign transaction fees (officially called 'non-sterling transaction fees') of about 3%– so £100 worth of foreign currency costs you £103.
On top of this, some debit cards charge a flat fee (typically 50p-£1.50) each and every time you spend overseas, regardless of the amount. Withdrawing cash usually attracts fees and unavoidable interest on credit cards. See for full details.
The good news? There are specialist travel cards that don't charge these fees, so you get the same near-perfect rate the bank does. When we say 'near-perfect', we're talking about the Mastercard and Visa exchange rates, which aren't quite as good as the perfect interbanking rate (though they're both usually very close – less than a pound worse per £100 exchanged).
Something to note is that when spending abroad on a credit or debit card, you'll get the exchange rate from the time your transaction was processed which may not be the same as the rate when the transaction was made. If you want to lock in a guaranteed, interbanking rate ahead of time, check out our Top pre-paid travel cards guide.
A specialist card can save you over £100 per holiday
Here's how much spending $1,000 can cost in pounds (we assumed five $100 cash withdrawals and 20 transactions of $25 each on the cards). This was done when the exchange rate was around $1.28 to £1 but – whatever the exchange rate is today – the point still stands about the cheapest ways to pay:
Top specialist credit/debit card repaid in full: £779
Top prepaid card: £779
Cash via cheapest bureau (pick up in London): £786
Cash from M&S on the high street (non-cardholders): £792
Using a debit card with a spending charge: £833
Changing cash at airport (not pre-ordered): £909
As you can see, the differences can be sizeable, yet the winners are simple. Apply for a specialist overseas card, then use it every time you go.
Check if your card charges foreign transaction fees
Never just blindly spend abroad with ANY card, use our tool to find out what it'd cost you to pay with your existing plastic before slipping it into your suitcase. Then compare that to our top-pick travel cards which don't charge, so you're armed with the cheapest way to spend.
Beware using any of the cards below overseas
Let's make this plain: don't use the cards in this section for spending overseas. Unless you're spending euros in the EU, Iceland, Liechtenstein or Norway, the cards below charge 50p to £1 for transactions on top of their normal exchange-rate charge.
Imagine you buy something for the equivalent of £5 in a shop in the USA. With the worst of these cards, it can end up costing £6.15 with the fee and charges.
Note: the fees and charges in the table apply to the bog-standard current accounts offered by the banks and building societies mentioned below. TSB, Bank of Scotland, Lloyds and Halifax all offer premium current accounts, which are fee-free to spend and withdraw from abroad but which charge a flat monthly fee instead.
Debit card | Exchange load (mark-up) | ATM charge (1) | Spending charge (1) |
|---|---|---|---|
TSB Spend & Save | 2.99% | 1.5% (min £2, max £4.50) | £1 |
Bank of Scotland Classic | 2.99% | £1.50 | 50p |
Lloyds Classic | 2.99% | £1.50 | 50p |
Halifax Current Account | 2.99% | £1.50 | 50p |
(1) Except on payments in euros within the European Economic Area (EEA).
Travel card need-to-knows
Before you go on holiday, there are some things you need to know about how credit and debit cards work overseas. Get this wrong and it can cost you large, so please read the following (even if you only have time to read and remember the headlines, it should help protect your pocket).
Specialist overseas credit cards can be the best way to spend when you're on holiday, but can turn into one of the worst ways if you're not disciplined enough to pay them off. Always follow the golden rule:
"Set up a direct debit to repay in full every month, or the interest charges dwarf the cheap-currency gains."
Direct debits may be marked 'inactive' if a card hasn't been used in a 13 month period – so if your hols have more than a year between them, check the direct debit is still in place.
And if you no longer need your card, see how to cancel credit cards.
Many overseas hotels, shops and ATMs ask this when you pay by card. If you choose pounds, the retailer does the currency conversion – but rates can often be poor compared with letting your card do it – see Martin's euro analysis for how this worked for him on a European trip.
If you've got a top overseas card, ALWAYS choose the local currency, as your card does the exchange and it's unbeatable.
If you're using a bog-standard credit or debit card, it's touch and go. Sometimes the card machine will show you the 'non-sterling cash fee'. If this is under 2.5%, go with pounds. If it's over, pick the local currency.
If you've a top overseas credit card, spending is almost always cheaper. Even on cards with no cash withdrawal fees, you'll usually still pay interest on the withdrawal until you pay it off.
This goes double for non-specialist credit cards. You'll pay the non-sterling transaction fee on all transactions overseas, but you'll also pay a fee and interest on cash withdrawals.
On debit cards, spending is still cheaper as while there's no interest on a cash withdrawal, there's often still a fee (as well as the non-sterling transaction fee) when you use a cash machine.
Since Brexit, more and more overseas ATMs have started to charge (higher) fees, so do keep an eye out.
Should I withdraw my travel currency in the UK or overseas?
If you're going to get the cash out on a specialist overseas card, then it's better to wait until you're there.
However, if you're just planning to use a normal card or convert pounds when you're out there, there's no guarantee you'll get a better rate – and certainly changing in most hotels is normally a bad idea as they give poor rates. Overall it's safer to use TravelMoneyMax and get the cheapest rate while you're here. Also see How to buy euros.
Does withdrawing cash on a credit card affect my credit score?
Any cash withdrawals you make on a credit card will be recorded at the credit reference agencies. On their own, they shouldn't matter too much, but if you have a history of poor credit, or you're looking to make an important credit application soon, they're best avoided. Sign up for MSE's Credit Club to see how the financial world views you.
Because it's usually quite expensive to withdraw cash on a credit card, lenders may see it as you being desperate for cash, and will count it against you if you apply to them.
For more information on the pros and cons, read our Withdrawing cash on a credit card guide.
When you spend abroad, your bank gets an almost perfect rate when it does the exchange for you. It exchanges at Mastercard's, Visa's or American Express' wholesale rate, all of which are pretty close to the spot rate that the currency markets suggest (the perfect rate).
When we compared rates across a couple of months, Visa had a slightly better exchange rate on 91 occasions, with Mastercard winning 72 times. The differences were also very small, often a few pence per £100 of currency – so there's little to separate them.
Most banks then charge you for having them make the exchange for you, and this is where the up-to-3% non-sterling exchange fee comes in. That's why you should always get one of the specialist cards in this guide, which don't add fees on top.
If you're using a credit card, ALWAYS pay it off IN FULL every month
If asked if you'd like to pay in pounds or the local currency, always pick the local currency
Spending is almost always cheaper than withdrawing cash when you're on holiday
Not all cards are equal – Visa's exchange rates tend to be a tad better than Mastercard, but there's very little in it
Sign up to MSE's Credit Club to boost your credit power – access our free tools to see how the financial world views you, including:
An Eligibility Rating that combines your credit score, affordability, and market trends.
View your full credit report – your financial CV.
Get personalised acceptance odds for credit cards and loans.
Top travel credit and debit cards
These are the best cards to use abroad – all have no exchange fee when you spend, and the very top picks also have fee-free and interest-free overseas cash withdrawals.
We've marked whether each card's a Mastercard or a Visa as it does make a slight difference to their exchange rates (Visa tends to be a touch better – see Mastercard vs Visa rates).
Our top picks are all credit cards which give fee-free & interest-free spending abroad (provided you repay IN FULL each month). You'll need to pass a full credit check to get them, yet our eligibility calculator will show your chances of acceptance before you apply, without marking your credit file. Each card has different perks, so which wins will depend on what you value the most.
It's worth noting that, should things go wrong with something you buy overseas, credit cards offer stronger protection than debit cards – credit cards give Section 75 protection, whereas debit cards give the lesser, but still useful, chargeback protection.
The Barclaycard Reward Visa credit card currently offers a boosted 0.5% cashback till 30 Nov on most spending both in the UK and overseas (it's the usual 0.25% after), plus it's the only one of our picks which doesn't charge fees or interest on overseas ATM withdrawals (provided you repay IN FULL each month). So, it's a clear winner if you plan to withdraw cash while abroad, and even if you don't, it's a strong choice due to its consistent ongoing cashback (though it can be beaten).
The advantage of MBNA's Cashback Visa credit card is that it guarantees 0.25% cashback with no fees on both UK & overseas spending for three years – useful if you want security over the longer term (for example, there's always a risk other cards could scrap their perks). However, unlike Barclaycard above, here there are fees & interest on overseas ATM withdrawals, so avoid using this card at cash machines.
The Virgin Money Everyday Cashback Mastercard credit card pays 1% cashback (max £15/month) on worldwide spending for three months. This makes it the most lucrative in the short-term, so it's a strong choice if you'll use it abroad this summer. After that you get 0.25% cashback – while that's the same as the two cards above, here there are fees & interest for using it at ATMs and no longer-term security, so the above cards beat it once the cashback falls.
KEY FEATURES | |||
|---|---|---|---|
Cashback on spending abroad? | ✓ Yes, 0.5% cashback on most UK & overseas spending till 30 Nov (0.25% after, no max cashback cap). | ✓ Yes, 0.25% cashback on most UK & overseas spending for 3 years (no max cashback cap). | ✓ Yes, 1% cashback on most UK & overseas spending for 3mths (0.25% after, max cashback £15/mth). |
Can you get it without a hard credit check? | No, there's a hard credit check, though our eligibility calc shows your odds of acceptance. | No, there's a hard credit check, though our eligibility calc shows your odds of acceptance. | No, there's a hard credit check, though our eligibility calc shows your odds of acceptance. |
Fee-free SPENDING? | ✓ Yes | ✓ Yes, for 3yrs (2.95% fee after) | ✓ Yes |
Interest-free SPENDING? | ✓ Yes, if paid IN FULL each month (avoid if not, as it charges 28.9% rep APR interest). | ✓ Yes, if paid IN FULL each month (avoid if not, as it charges 12.9% rep APR interest). | ✓ Yes, if paid IN FULL each month (avoid if not, as it charges 24.9% rep APR interest). |
Fee-free ATM CASH? (Individual ATMs may charge) | ✓ Yes, up to £500/DAY. | No, 5% fee, so avoid. | No, 5% fee, so avoid. |
Interest-free ATM CASH? | ✓ Yes, if paid IN FULL each month (avoid if not, as it charges 28.9% rep APR interest). | No, 12.9% rep APR interest charged daily until balance is fully repaid | No, 24.9% rep APR interest charged daily until balance is fully repaid |
Does it have Section 75 protection? | ✓ Yes, full Section 75 protection. | ✓ Yes, full Section 75 protection. | ✓ Yes, full Section 75 protection. |
How to get the card? |
See all official APR examples.
Top alternative credit & debit travel cards
We've more choices below if none of the above suit – all are decent picks and are fee-free to spend on abroad, though some charge interest or have ATM fees/limits.
| Top travel debit cards | ||||||
|
Chase Mastercard Debit Card* |
- No fees or interest on overseas spending or withdrawals |
Apply * | ||||
|
First Direct* |
- No fees or interest on overseas spending or withdrawals (max £500/day) |
Apply * | ||||
|
Starling |
- No fees or interest on overseas spending or withdrawals (max six/day, max £300/day) |
Apply | ||||
|
Currensea* Read plus how to get £10 cashback |
- Links to existing bank account via Open Banking |
Apply * | ||||
| Top travel credit cards – best of the rest | ||||||
|
NatWest Travel Reward credit card 27.9% rep APR |
- No fees or interest on overseas spending (if repaid IN FULL each month) |
CHECK ELIGIBILITY | ||||
|
Santander Edge credit card* 29.8% rep APR (not in our eligibility calculator – check eligibility on Santander's website) |
- No fees or interest on overseas spending (if repaid IN FULL each month) |
Apply * | ||||
|
Halifax Clarity credit card 23.9% rep APR |
- No fees or interest on overseas spending (if repaid IN FULL each month) |
CHECK ELIGIBILITY | ||||
Looking for a card that children can use abroad?
Our top-pick cards for under-18s offer near perfect exchange rates, plus most let you set spending limits and monitor via apps.
What are the alternatives to travel credit and debit cards?
If you don't want a new credit or debit card, but you still want to be able to maximise the bang for your buck (or euro, or dong) there are a couple of other ways to spend that you can look at...
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Prepaid travel cards. These let you load them up and lock in a rate in advance. Some charge huge fees or take a cut of the exchange rate, but cards such as Revolut and Wise tend to offer a decent deal, often rivalling the cards above. See full information and our current top picks in prepaid travel cards.
They don't expire, but you can be charged fees if you don't use them within a set period of time (usually one or two years of inactivity). And many do have ongoing monthly fees and/or card delivery fees, though the ones in our guide don't have ongoing monthly fees or inactivity fees, but some do have card delivery fees. -
Prefer cash? Useful if card isn't accepted, our TravelMoneyMax travel money comparison tool helps you find the best exchange rates for your holiday money.
Want to complain about your card provider?
If your card company has charged you the wrong amount, charged interest when it shouldn't have or its service has been atrocious, then you don't have to suffer in silence.
It's always worth trying to call the provider first to see if it can help, but if not, you can use free complaints tool Resolver. The tool helps you manage your complaint, and if the company doesn't play ball, it also helps you escalate your complaint to the free Financial Ombudsman Service.
Sorting travel insurance once you've chosen a top card for travelling abroad? Read our guide to Cheap travel insurance which has all the need-to-knows, including how to claim if you need to.
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