Cheap travel money tips
The cheapest ways to get foreign currency & spend overseas
Holidays can be worry-free if you sort out the practicalities early. Yet many treat how to pay when they're abroad as an afterthought – even though doing it wrong can cost them £100s. This guide compares the four main options to get the most bang for your buck when overseas.
Travel money need-to-knows
Here are six points to help you maximise your holiday spending savings. Get this wrong and it can cost you large.
Get this wrong and you'll end up paying to pay.
Here's how much spending €1,000 can cost, in pounds, using each of the different methods (we've assumed five €100 cash withdrawals and 20 transactions of €25 each on the cards).
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Top specialist credit/debit card repaid in full: £818
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Cash, via cheapest bureau (must pick up in London): £821
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Cash from M&S on the high street: £829
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Using a debit card with a spending charge: £872
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Changing cash at airport (without ordering it): £949
The winners are clear – apply for a specialist overseas card, then use it every time you go.
Below, we've got the full lowdown on travel credit cards, travel debit cards and prepaid cards – plus cash, if that's your preference.
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 pants compared with letting your card do it – see the euro analysis from MSE founder Martin Lewis for how this worked for him.
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. In theory, you could pay in pounds if you know the merchant's exchange rate mark-up is lower than the fee your card provider will charge.
In practice, this comes with two problems:
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This is rarely the case. Even with the worst credit cards for spending abroad with the highest fees, it's far more likely that the merchant's exchange rate outweighs them.
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Making this calculation in a hurry at the point of sale is difficult at best.
So for safety and simplicity's sake, the golden rule is:
If using a card and you’re asked whether you want to pay in pounds or pay in local currency, ALWAYS say the local currency.
Never just spend abroad with ANY card – use our tool below to find out what it'd cost you to pay with your existing plastic before slipping it into your suitcase. Then compare that with our top-pick travel cards which don't charge, so you're armed with the cheapest way to spend before you set off.
Beware using any of these cards 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-£1.50 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 £6.60 with the fee and charges.
Note: the fees and charges in the table apply to the standard current accounts offered by the banks and building societies mentioned below. TSB, Bank of Scotland, Lloyds and Halifax 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) |
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TSB | 2.99% | 1.5% (min £2, max £4.50) | £1 |
Bank of Scotland | 2.99% | £1.50 | 50p |
Lloyds Bank | 2.99% | £1.50 | 50p |
Halifax | 2.99% | £1.50 | 50p |
(1) Except on payments in euros within the European Economic Area.
Use a credit card to buy currency at a bureau de change or online through our TravelMoneyMax comparison tool and you risk falling foul of a hidden charge.
That's because buying currency is counted as a cash withdrawal, so you could face a myriad of fees. These include cash withdrawal fees, interest or even a charge from the currency exchange for using a credit card.
Some card providers also treat loading a prepaid card using a credit card as a cash withdrawal.
So if you're buying currency or loading a prepaid card, ALWAYS use a debit card, which isn't allowed to charge this fee, or withdraw cash and pay with that instead.
Many car hire firms won't accept a debit or prepaid card when you come to pick up your car, and will instead need a credit card. As you'll usually be paying (or leaving the deposit) in the foreign currency, and this can be a substantial amount of money, a specialist overseas card is particularly good for this.
Are you part of the 'overseas wallet or purse' club? Martin's pioneered this, and it's a clever way to make sure you're prepared on holiday. His rationale is that there are some things you only need when abroad:
Specialist overseas plastic. These tend to be pretty poor for UK use, so leave it in your overseas wallet until you go away.
Free GHIC/EHIC for emergency medical issues in Europe. See our guide on how to get or renew your free GHIC/EHIC card.
Driving licence & international driving permit. Check out when and why you need to take these in our full driving licence renewal guide.
ESTA number for US travel. Check out our ESTA application guide.
Leftover currency. Left over from previous trips – good if you can't get to a cash machine right away.
Spending the wrong way can mean your holiday costs more than it should
If asked if you'd like to pay in pounds or the local currency, always pick the local currency
Never blindly use your existing cards overseas – check what they charge before you go (and find a cheaper alternative)
Don't buy travel cash or load a prepaid card using a credit card – you'll be charged interest
Hiring a car abroad? You'll likely need a credit card
Make sure your 'overseas wallet' is fully stocked – here's what to take
The best travel money options
Which type of travel money you should use mainly depends on your preferences as each has advantages and disadvantages. There are five main forms of payment to choose from:
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Travel credit cards – near-perfect exchange rates and purchase protection
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Travel debit cards – near-perfect exchange rates and no 'hard' credit check
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Prepaid travel cards – lock in a rate before you go
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Cash – good as a backup where card is not accepted
Option 1: Travel credit cards
Spend on a credit card abroad and normally your card provider gets near-perfect rates, but then adds a 3%-ish 'non-sterling exchange fee'. This means that every £100 worth of euros or dollars costs you £103, and some add even more fees on top.
Specialist credit cards don't add this, so you get the same rate the bank does. Yet ONLY use one if you set up a direct debit to repay IN FULL each month or the interest dwarfs the exchange rate gain. As with any credit card, you'll need to pass a credit check to get a travel credit card.
Travel credit cards are good if... | Travel credit cards may not be right if... |
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✔️ You want near-perfect exchange rates | ⚠️ You've a poor credit score |
✔️ You want Section 75 protection | ⚠️You won't repay IN FULL every month |
We list our two top picks below, though for more options, see our Top cards for travelling abroad guide.
Do also bear in mind that a travel debit card could be cheaper. If you're happy opening a new app-only current account and loading funds before you go, you can get near-perfect exchange rates and up to 1% cashback on most spending worldwide with a top travel debit card.
| Bear in mind that a travel debit card could be cheaper. If you're happy opening a new app-only current account and loading funds before you go, you can get near-perfect exchange rates and up to 1% cashback on most spending worldwide with a top travel debit card. | ||||||
Barclaycard Rewards Visa |
A solid alternative as it charges no fees or interest on spending AND overseas cash withdrawals, provided you repay in full. Plus you get an ongoing 0.25% cashback on almost all spending. |
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- No fees on spending or ATM withdrawals overseas |
CHECK ELIGIBILITY Apply * | |||||
Halifax Clarity Visa |
The Halifax Clarity card has no fees on overseas spending and low ATM interest. You don't get charged interest on spending abroad as long as you repay IN FULL, but you will if you make cash withdrawals (about 5p per £100 per day) – so try to minimise these. |
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- No fees on spending or ATM withdrawals overseas |
Apply | |||||
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The Halifax Clarity credit card is not currently in our eligibility calculator – but you can check your odds of acceptance using Halifax's own elegibility calculator on its website. | See all official APR examples. |
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Warning. Withdraw cash on a credit card and it's marked on your credit file
Withdrawing cash on some of the top specialist overseas credit cards is usually a cheap option. However, it can have unintended consequences as it's recorded on your credit report. This isn't necessarily bad, but if you apply for a loan or other credit soon after, the new lender might see it as a sign that you've no cash and you're so desperate for it, you're willing to pay high interest to get it.
In isolation, the negative effect of withdrawing cash is minor and shouldn't be the root cause of a lender rejecting you. But if it's combined with other negatives on your credit report, it doesn't look good. To be safe, if you've an important credit application to make, such as a mortgage, it's probably worth avoiding withdrawing cash on your credit card for the few months before the application.
See Withdrawing cash on a credit card for full information.
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.
Option 2: Travel debit cards
You can also get debit cards that don't charge 'non-sterling transaction fees'. Here, you usually need to apply for a new bank account. But, unlike with the credit cards above, our top picks only do a 'soft' credit check, which means the application for the card itself won't affect your ability to get credit in the future.
If accepted, you can just use these as a secondary bank account without switching bank, but unlike with a credit card, you will need to pay cash into the account before using it, which some may find a pain.
Travel debit cards are good if... | Travel debit cards may not be right if... |
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✔️ You're happy to open a (new) bank account to get one | ⚠️ You switch from a better account to get one |
✔️ You frequently withdraw cash, as there are no charges | ⚠️You want Section 75 protection (though they do allow chargebacks) |
For more debit card options, see Top cards for travelling abroad. Our top picks are...
First Direct Mastercard |
Fee-free spending and cash withdrawals worldwide, TOP service, 7% regular saver and £250 0% overdraft for many. First Direct has been top or near top of every customer service poll we've ever done, and comes with a linked 7% regular saver which you can put up to £300/month in, and gives many an ongoing £250 0% overdraft. Unlike with Chase below, here there's a full credit check. Plus, you can currently get £175 FREE cash if you switch. Full info, including crucial eligibility criteria, in our First Direct review. |
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- No fees on spending or at ATMs |
Apply | |||||
Chase Mastercard |
Fee-free spending and cash withdrawals worldwide, plus 1% UK supermarket, transport & fuel cashback for at least a year. Unlike the credit cards above, Chase only runs a 'soft' credit check when you apply – so there's no permanent mark on your credit report. To use Chase, you'll need a device with at least iOS 14.1 or Android 8.1. You get 1% cashback on most supermarket, transport and fuel spending for at least a year (max £15/month), though there are some exclusions. There's no minimum pay-in required in the first year, but you'll have to pay in £1,500+/month after that to continue getting cashback. Note: this only applies to UK spending – there's no cashback for purchases made abroad. If you're thinking of switching to Chase, or using it as your main bank account, read our Chase review. |
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- No fees on spending or at ATMs |
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Top alternative debit cards
We've more choices below if neither of the above suit – all are decent picks in their own right and are fee-free to spend on abroad, though some charge interest or have ATM fees/limits.
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Via our link, newbies get £10 cashback when spending £100+ in any foreign currency within the first six months.
The Currensea card works a little differently to the other credit and debit cards featured here, as you link it to your existing bank account via Open Banking. Then, when you spend or withdraw on the Currensea card, it charges your linked current account in pounds (via direct debit), neatly avoiding the non-sterling transaction fees and ATM fees that most banks charge.
Rates for popular currencies such as euros and US dollars can be slightly worse than the above cards, though there's not much in it. And if you prefer the idea of something that's linked to an existing account, the cashback is a bonus. Full info in our . -
With Starling's Mastercard debit card, all overseas spending and ATM withdrawals are fee-free and interest-free (max six withdrawals/day, max £300/day), and like Chase above it only requires an ID check instead of a full credit-check. Full info in our Starling review.
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New app-only bank Kroo's Visa debit card is entirely fee-free for overseas spending. However, overseas ATM withdrawals are only fee-free up £200/month (there's a 3% fee on anything withdrawn over this limit), and its website indicates that there will be ATM withdrawal fees from 30 April 2025. It also pays 3.4% AER savings interest on up to £500,000, and only requires an ID check to open. Read our full Kroo review.
Option 3: Prepaid travel cards
Here, you load with cash before you travel, then use it like a debit card. If you lose it, you can call the provider to block the card and protect your cash.
Prepaid cards' big advantage is that you can choose to exchange cash in advance, locking in a rate, rather than getting the exchange rate when you spend as you would with a credit or debit card. This means you'll know exactly how much you have to spend in the foreign currency during your trip, but will also mean you're subject to currency fluctuations – for better or worse.
However, there are a few places that don't accept them – car hire firms and pay-at-pump petrol stations are the major ones, but there are a few others to watch out for.
Prepaid travel cards are good if... | Prepaid travel cards may not be right if... |
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✔️ You want to lock in a rate | ⚠️ You want the absolute best rates |
✔️ You want to stick to a budget | ⚠️You need to pay by credit card (for example, you need to hire a car) |
✔️ You lose it/it's stolen (unlike cash, your balance is protected if you report it immediately) | ⚠️ You want Section 75 protection (though they do allow chargebacks) |
Our top picks are below, though see our full review and more options in Prepaid travel cards.
Revolut (standard plan) |
Perfect interbank rates during the week, though watch out at weekends. You can spend up to £1,000 per 30-day period with no charges on weekdays (UK time) – it charges 1% above this and at weekends. You can lock in a rate with 29 currencies by exchanging in advance, just make sure to do this on a weekday. The card usually costs £4.99, plus you pay ATM fees on more than £200/month. Note: Recent news stories have come to light of people finding fraud protection at Revolut inadequate. Revolut denies this. But we’re talking about using it as a prepaid card, so you’ll not be loading substantial amounts of money on it if you use it that way. Therefore we’re not doing a full risk assessment. |
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- £4.99 card delivery fee |
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Wise |
Perfect interbank rates, though there's a small exchange fee. What you'll pay depends on the currency and is comprised of a flat fee plus a percentage of the amount being exchanged – for example, exchanging pounds to euros costs 59p plus 0.33% of the amount you're exchanging. This means the more you exchange, the lower your fee will be as a percentage of what you exchange, and you can see what that percentage will be when you use its currency conversion calculator. It could beat Revolut at weekends if you'd prefer not to exchange a set amount in advance. It also has two fee-free cash withdrawals up to £200 each month, above that there's a charge of 1.75% + 50p. |
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- £7 card delivey fee |
Apply * | |||||
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(i) If you spend at weekends (UK time) it adds a 1% fee to its rates, unless you've locked in a rate on a weekday. There's an additional anytime 1% fee on amounts more than £1,000 in a single month. |
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Option 4: Foreign currency
We asked MoneySavingExpert.com founder Martin Lewis how he gets the best rate on foreign currencies using bureaux de change.
He said: "While personally if I need cash, I use my specialist card and tend to withdraw it from an ATM at the airport as soon as I arrive. Yet if we focus only on bureaux de change...
"In general it's a better bet to get cash before you go, as you can research the cheapest rates (use TravelMoneyMax). Otherwise travel abroad and you're blind to what's out there and especially in tourist resorts you can find poor rates and limited competition.
"I'm not saying overseas bureaux can't undercut UK ones, it's just they have to be very cheap to beat the UK's cheapest, and it's unlikely you'll stumble on that randomly. The exception is if you know of a specific bureau that may give very good rates, for example, you go to the same place every year. Then absolutely if you know what you're doing, wait."
Our TravelMoneyMax tool compares foreign exchange rates at about 16 online bureaux and orders them by how much currency you'll actually get after all fees and charges.
Though beware, pay a UK bureau by credit (not debit) card and it counts as a cash withdrawal, so there's a fee and interest even if you fully repay – best to always use a debit card or cash to buy.
Getting cash is good if... | Getting cash is bad if... |
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✔️ You want to lock in a rate | ⚠️ You want the absolute best rates |
✔️ You want to stick to a budget | ⚠️You need to pay by credit card and/or want Section 75 protection |
✔️ You have a secure place to keep it | ⚠️ It's stolen |
What should I do if I have leftover currency after a trip?
You have a few options if you've a few leftover coins or notes after your trip...
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Save it for your next trip. If it's a common currency from a country you'll go back to, then just store it safely at home ready for your next trip.
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Find a friend (or a friend of a friend) who needs that currency. If you won't go back, but your currency's for a common holiday destination, see if you've friends, or contacts on social media groups, planning a trip there. If so, look up the 'spot rate' (perfect rate, for instance on XE.com) and agree to sell at that price, then you both win.
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Sell it back to a bureau de change. Sometimes if you bought currency from a particular place, it'll give you a buyback promise at a preferential rate. Yet, if this is what you're doing, always check the Buyback tab on MSE's TravelMoneyMax currency tool, to make sure it's a good deal.
This won't be the case if you just returned from a trip, but if you have other currency from previous trips, and it's old, or even defunct (for example, French francs), check out former MSE Rhiannon's leftover currency blog, where she has tips of companies that may buy it from you - though don't expect to get paid what it's 'worth' at face value.
Quick questions on buying currency
Martin recorded the video below in 2017, and while the info about Article 50 is no longer relevant, the rest still applies today. You can turn on subtitles by clicking on the closed captions icon at the bottom right of the video.
In summary...
Without a crystal ball, no one knows if the pound will be stronger or weaker in the future. Anyone who tells you otherwise is merely speculating.
If you're concerned about currency volatility before you head away, you could choose to buy half now and half later. Do this and you'll be less affected by currency swings.
Whether you buy now or later, the key is to get the best possible rate at the time.
Using an airport bureau is the easy option, but it's such a waste. Airport and ferry port rates are usually dismal, as they know they're the last port of call and you're a captive customer.
Far better that you use TravelMoneyMax before you go or, if you've left it too late, at least order in advance online to pick up at the airport to get better rates.
In general you don't get a better rate changing your pounds to euros, dollars, lire or dong once you're in that country than you do here. Yet that doesn't mean there aren't a few local bureaux overseas that may give tip-top rates.
The problem is there's no way of knowing until you're there, and as rates vary every day, once you're there, comparing with what was available back home is tough.
Therefore we suggest for safety you sort it before you go (if you can – some currencies, such as the Lao kip, aren't available outside the country). The big advantage of that is you can use TravelMoneyMax to find the best rate from about 16 bureaux.
And getting a top rate here should usually beat relying on an unknown rate from a one-off local bureau once you're there.
Should I buy holiday currency in advance?
Can't I just change cash at the airport?
Won't I get a better deal if I change cash at a local bureau de change on my trip?
Sorting your currency is just one way to cut travel costs. For more, see 60+ overseas travel tips.
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.
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