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.
First, a quick overview of travel cards for spending abroad..
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.
New. Lloyds Ultra Visa Credit Card | - 1% cashback on most UK & overseas spend for a year (ongoing 0.25% thereafter) |
Barclaycard Rewards Visa Credit Card | -0.25% cashback on most UK & overseas spend |
Chase Mastercard Debit Card* | - 1% cashback on UK groceries, transport & fuel |
(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: £740
Top prepaid card: £740
Cash via cheapest bureau (pick up in London): £751
Cash from M&S on the high street (non-cardholders): £758
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
Try our free Credit Club
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.
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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).
Top travel cards – what we'd go for
Our top picks are all fee-free and interest-free when spending abroad – 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.
New. Overall best card. The Lloyds Ultra Visa credit card is a specialist overseas card, meaning it doesn’t add the usual 3% foreign exchange fee when you spend abroad – you’ll get the same near-perfect exchange rate as the bank does, wherever you travel. On top of that, it offers fee-free cash withdrawals overseas, though interest builds daily until repaid IN FULL, so it’s best used for spending rather than ATMs. Crucially, it also pays 1% cashback on almost all purchases worldwide for the first year (then 0.25% after), with no cap on how much you can earn. Combined, that makes it the new top pick for cheap overseas spending with generous cashback.
Good alternative. The Barclaycard Reward Visa credit card offers a decent 0.25% cashback on spending abroad and within the UK, meaning you're paid to pay. Plus there's fee-free and interest-free withdrawals abroad (provided you pay it off IN FULL each month, preferably by Direct Debit, to avoid any interest)
Easiest to get. The Chase Mastercard debit card* is the easiest to get – there's only a soft credit check, not a full one, and you needn't switch bank accounts; just open it alongside your existing bank. It no longer offers cashback on overseas spending (see Chase cuts cashback), though you do still get 1% back on groceries, transport & fuel in the UK. Newbies can also open its 4.5% easy-access saver.
Top card for overseas spending. Fee-free for overseas spending, you’ll get the bank’s near-perfect exchange rates wherever you travel. It allows fee-free cash withdrawals abroad (interest applies until cleared) and also pays 1% cashback on almost all purchases worldwide for the first year (then 0.25% after), with no cap on how much you can earn. It's open to both new and existing Lloyds customers.
Ongoing rewards:
1% cashback in first year on worldwide spending (0.25% after)
Other perks:
Fee-free ATM withdrawals and spending (if paid IN FULL each month)
Barclaycard Rewards Visa Credit Card
NO FEE
28.9% rep APR
Good alternative. Offers 0.25% cashback on spending abroad and within the UK, meaning you're paid to pay. Plus there's fee-free and interest-free withdrawals abroad (provided you pay it off IN FULL each month).
Ongoing rewards:
0.25% cashback on most UK & overseas spending
Other perks:
Fee & interest free ATM withdrawals abroad (if paid IN FULL each month)
Easiest to get. Only requires a soft credit check, not a full one, and you needn't switch bank accounts, just open it alongside your existing bank. It offers fee-free spending and ATM withdrawals abroad, but no longer offers cashback on overseas spending, though you do still get 1% back on groceries, transport & fuel in the UK (max £15/mth).
Ongoing rewards:
1% cashback on some UK spending (up to £15/mth)
Other perks:
Fee-free for overseas spending & ATM withdrawals & linked 4.5% easy access savings account
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.
Virgin Money Travel Credit Card
NO FEE
24.9% rep APR
A good alternative for spending (beware withdrawal fees). Fee-free for spending abroad, with 1% cashback (max £15/mth) on most purchases for the first three months (0.25% after). However, avoid this card if you plan on getting cash out, as there's a 5% fee on ATM withdrawals plus interest charge daily until fully repaid.
Ongoing rewards:
1% cashback in first 3mths on worldwde spending (0.25% after)
Other perks:
Fee-free spending (watch out for 5% withdrawal fee plus interest)
MBNA Travel Cashback credit card
NO FEE
12.9% rep APR
Decent cashback on spending but hefty withdrawal fees. This card offers 0.25% cashback on most spends at home and abroad for three years, plus it's fee-free during that time (if paid off IN FULL). Note: once the cashback period's over, you'll start being charged 2.95% on overseas spends. There's also a 5% fee on ATM withdrawals from day one, plus interest charged daily until fully paid off, so avoid using at ATMs.
Ongoing rewards:
0.25% cashback for 3yrs
Other perks:
Fee-free spending for 3yrs, then 2.95% (watch out for 5% withdrawal fee plus interest)
NatWest Travel Reward credit card
NO FEE
27.9% rep APR
Good for cashback on specific spends. On top of the fee-free overseas spending, you can also get 1% cashback on the card for certain travel spends (eg: planes, trains, car rentals etc.). There's also an ongoing 0.1% cashback elsewhere, though be mindful of the 3% overseas withdrawal fee (min £3), as well as interest charged daily until fully repaid (so avoid using at ATMs).
Ongoing rewards:
1% cashback on certain travel spend (0.1% elsewhere)
Other perks:
Fee-free spending (watch out for 3% withdrawal fee, min £3, plus interest)
Yonder Credit Card
NO FEE
32% rep APR
Earn points to spend on dining, travel and days out etc. The Yonder credit card gives you fee-free spending and overseas ATM withdrawals (if repaid IN FULL each month), plus you get one point per £1 spent. Points can be used for a variety of 'lifestyle-oriented rewards' such as dining, travel, theatre & shopping. You also get £10 cashback on your first spend, plus 1,000 bonus points on £1,000+ spend within first 30 days.
Ongoing rewards:
1pt. per £1 spent (for 'lifestyle-oriented rewards')
Other perks:
£10 cashback on first spend, plus 1,000 bonus points on £1,000+ spend within first 30 days. (fee-free overseas spending and ATM witdrawals)
Santander Edge credit card
£4/mth
37.8% rep APR
1% cashback for £4 a month. This card offers 1% cashback on almost all spends in the UK and abroad (max £10/mth), which are also fee-free and interest free as long as you pay off IN FULL each month. Do note that the card comes with a £4/mth fee, so you'd need to spend £400+ to break even. There's also 3% interest (min £3) charged on overseas ATM withdrawals, so don't use it at cash machines.
Ongoing rewards:
1% cashback (max £10/mth)
Other perks:
Fee-free spending (watch out for 3%, min £3, withdrawal fee plus interest)
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 above, 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.
Ongoing rewards:
None (full credit check)
Other perks:
No fees on spending or at ATMs plus TOP service
Yonder Debit Card
Mastercard
Earn points to spend on dining, travel and days out etc. The Yonder debit card gives you fee-free spending and overseas ATM withdrawals (max 5/week, max £150/day), plus you get one point per £1 spent. Points can be used for a variety of 'lifestyle-oriented rewards' such as dining, travel, theatre & shopping. You also get £10 cashback on your first spend, plus 1,000 bonus points on £1,000+ spend within first 30 days.
Ongoing rewards:
1pt. per £1 spent (for 'lifestyle-oriented rewards')
Other perks:
£10 cashback on first spend, plus 1,000 bonus points on £1,000+ spend within first 30 days. (fee-free overseas spending and ATM witdrawals)
Starling
Mastercard
Decent option from top service digital bank. Fee-free spending and withdrawals overseas (six/day max, £300/day max) from this app-based bank account, which also offers numerous features such as dedicated savings pots, virtual cards and round-ups (automatically saving your spare change with each purchase). Plus it regular scores highly on our banking service poll (91% 'great' in our July poll)
Ongoing rewards:
None (soft credit check)
Oter perks:
Fee-free spending and cash withdrawals (max six/day, max £300/day)
Currensea*
Read how it works plus how to get £10 cashback
Avoid overseas fees through Open Banking. Link your existing current account to Currensea via Open Banking, which then charges your linked current account via Direct Debit – bypassing any foreign spending or ATM fees. Though note, there's a flat 0.5% charge on top of the interbank/Mastercard exchange rate, so you might be better off with some of the other cards in the table.
Ongoing Rewards:
£10 cashback on £100+ spend in first 6mths
Other perks:
fee-free spending and withdrawals (but watch out for conversion rate charge of 0.5%)
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.
Travel card FAQs
Opening a travel credit card will involve a hard credit check, which can temporarily lower your score. Using it responsibly (repaying in full, keeping utilisation low) should actually help long term. Debit cards and prepaid cards don’t impact your credit score at all.
Yes, but some companies place a ‘hold’ on your card for hundreds of pounds. A credit card is safer here – with debit cards or prepaid cards, that money is ring-fenced in your account and you won’t be able to touch it until the hold’s released.
Most banks say you don’t need to, but it’s still wise to register your trip in-app or online if the option exists. Unusual overseas transactions can sometimes trigger fraud blocks.
All providers have 24/7 hotlines to freeze cards, but not all will courier emergency replacements internationally. Some debit card providers (eg, app-only banks) may only post a new card to your UK address, leaving you stuck unless you’ve got a backup. Always take at least two cards from different providers.
Yes. Many “fee-free” debit cards cap cash withdrawals (eg, £300 a day or £1,500 a month). Credit cards usually let you withdraw more, but interest starts instantly unless you’ve got one of the rare cards that gives interest-free cash withdrawals. That's why you should ALWAYS avoid withdrawing cash off your credit card.
Will using a travel card affect my credit score?
Can I use my travel card for car hire and hotel deposits?
Do I need to tell my bank I’m going abroad?
What happens if I lose my travel card abroad?
Are there limits on how much I can withdraw abroad?
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