Travel money Best debit and credit cards for spending abroad
If you use plastic on holiday, make sure you choose the best debit or credit card for overseas spending
Paying for goods and services by debit or credit card is quick and convenient, and many people – especially those who don’t feel secure carrying a wallet full of foreign currency around – prefer to pay with plastic while on holiday.
However, your ‘flexible friend’ might turn out to be a fiend if you use it for foreign transactions. This is because many debit and credit cards apply hefty fees to payments and withdrawals made abroad – and if you’re a big spender, these could add a significant sum onto the cost of your holiday overall.
Here’s the lowdown on the cards you should – and shouldn’t – use if you want to avoid these charges and make sure your holiday money goes further.
Best credit cards for spending abroad
Credit card issuers tend to apply a host of hidden charges when you use your plastic abroad:
- A ‘load’ of up to 2.75% of the sum spent, each time the card is used;
- Interest charges from the moment cash is withdrawn on the card, often at rates of up to 30% APR – even if the card balance is paid off in full before the end of the month;
- A cash withdrawal fee of around 2.5% (or £3) when you take money out of a cashpoint using your credit card, in addition to the load and interest charges.
Which? experts recommend that you always avoid using your credit card at the hole in the wall, except in the most extreme circumstances – whether you’re abroad or at home.
When it comes to avoiding the other charges foreign credit card transactions incur, all you need to do is to choose a credit card that won’t charge you for making purchases overseas. If you’re a frequent traveller and prefer to pay with plastic, it certainly makes sense to get hold of one of our top picks – even if you only ever use it on holiday.
| Best for spending abroad Cards that offer the lowest fees for spending abroad | ||||||
|---|---|---|---|---|---|---|
| Product | Which? recommended provider | APR | Foreign exchange loading fee EU | Foreign exchange loading fee Worldwide | Customer score | Find out more |
| Average | 17.3% | 67% | ||||
| Saga Platinum Visa |  | 11.9% | 0% | 0% | 82% |  |
| This card offers a low standard APR, together with a good nine-month 0%-on-new-purchases deal. This card is only available to customers aged 50 or over. | ||||||
| Halifax Clarity MasterCard | No | 12.9% | 0% | 0% | 55% | Halifax |
| A good all-round credit card, charging 12.9% on purchases, balance transfers and cash withdrawals. | ||||||
| Post Office Platinum MasterCarda | | 16.9% | 0% | 0% | 68% | |
| This card also offers a 14-month 0% balance transfer deal (with a 2.98% handling fee). | ||||||
| Sainsbury's Finance Gold MasterCard | No | 9.94% | 0% | 0% | 67% | Sainsbury's Finance |
| This card has some good perks, including family travel insurance, but comes with a £5 a month fee. The representative APR, including the fee, is 20.1%. No interest is charged on purchases and cash withdrawals so long as you pay your balance in full and on time each month. | ||||||
| Nationwide BS Credit Card Visa | No | 15.9% | 0% - 2% | 0% - 2% | 66% | |
| For every £100 you spend on your credit card during the year you receive £20 worth of commission-free allowance to use on purchases in a foreign currency. Therefore if you spend £500 a month you could earn up to £1,200 a year overseas 'allowance' on which you won't be charged foreign transaction fees. All transactions made outside of the allowance will incur an overseas usage fee of 2%. | ||||||
Table notes
For all cards in the table exact rate depends on your credit score.
Wherever we display a “MORE INFO” button in the above table, that company pays us a small fee each time someone clicks on the button. These payments do not influence whether a product is in the table, where it appears, or whether it continues to do so. Our Best Rates tables are compiled by our independent researchers. All revenue raised from these tables is reinvested in our research and campaigning work on behalf of all UK consumers.
Be wary of using debit cards overseas
Using the wrong debit card on holiday could be just as costly as spending on some credit cards:
- Whether you withdraw money or spend it over the counter, you’ll be charged a ‘load’ of around 2.75% – just as you would be for spending on a credit card;
- If you take money out at a cashpoint, a cash withdrawal charge of around 2.5% (or £3) is likely to apply;
- Some debit card providers – such as Halifax, RBS, NatWest, Santander and Lloyds TSB – also add an extra ‘penalty fee’ every time you use your card abroad for purchases. This means making a succession of transactions in shops or at cashpoints, even for tiny amounts, could end up costing you a small fortune.
Before using your debit card abroad, check with your card provider what fees will apply to any transactions you make. You may find it’s cheaper to take out a large sum from a cashpoint at the start of your holiday than to use your debit card for repeated withdrawals and over the counter transactions.
Best debit cards for spending abroad
Some debit cards offer fee-free spending overseas, but the current accounts you must open in order to get them often come with small catches.
Norwich & Peterborough Building Society now offers two currents accounts, the Gold Classic and Gold Light accounts, that come with debit cards which are free to use overseas.
However, with the Gold Classic account you must pay £500 a month into your account or face a £5 monthly penalty fee. Meanwhile, holders of the Gold Light account will have to pay a £5 fee whenever they make fewer than five transactions within a month.
Alternatively, if you have investments, a mortgage or a large amount of savings with Santander (£10,000 or more), you'll be eligible to open one of its Zero current accounts. This comes with a fee-free debit card for overseas spending - but be aware that Santander's customer service record is poor, with Which? members consistently rating it well below average. Santander's other current accounts are not competitive for using your debit card overseas.
Nationwide’s FlexAccount Visa debit card used to offer customers free overseas spending in Europe, but fees of 2% now apply to spending in all foreign countries. A £1 charge for overseas cash withdrawals was also introduced on 1 November 2010. While this is disappointing for Nationwide customers, its fees are still cheaper than competitors except for Norwich & Peterborough BS and Santander Zero.
Use a credit or debit card overseas to get extra protection
There are certain situations where paying with plastic makes more sense than using cash – particularly if you have the best credit or debit card for spending abroad.
Using your credit card when you make big purchases – such as booking flights, activities or paying for your hotel – will mean you get extra protection should something go wrong. This is because purchases costing over £100 and up to £30,000 are covered under Section 75 of the Consumer Credit Act, which gives you the right to claim your money back from your card provider should you need to. For more information on Section 75 protection, read Your rights when paying by credit card.
Debit card transactions are covered by the Chargeback scheme, which - although not enshrined in law - works in a similar way. Visit our Chargeback page to find out more.
Two top tips for using credit and debit cards abroad
Finally, it’s probably a good idea to tell your debit or credit card provider you’re planning to use your card on holiday before jetting off. Providers sometimes block cards if ‘unusual transactions’ – such as overseas spending - are taking place. While this is a measure designed to guard against fraud, it can lead to inconvenience when holidaymakers try to spend on their cards legitimately.
Also, note that it’s increasingly common for overseas retailers to ask whether you’d prefer to pay in the local currency or sterling when you are settling a bill by credit or debit card.
Unless you can be sure the exchange rate you’d get for paying in pounds sterling is competitive, it’s best to steer clear of this option and pay in the local currency of whichever country you’re visiting.
- For any financial query, call our experts on the Which? Money Helpline
- Take a look at our travel insurance reviews to find the best deal for you
- Check out our guide to holiday protection
