In bad news for UK holidaymakers, Barclaycard has announced its Platinum Cashback Plus credit card will no longer offer fee-free spending and cash withdrawals abroad.
Instead, cardholders will face a non-sterling transaction fee of 2.99% for all overseas purchases and cash withdrawals, which could make a big difference to your credit card bill.
The changes currently only apply to new applicants. Existing customers won't be affected, and can continue enjoying fee-free foreign spending until 31 August 2023.
Which? explains how the changes could affect you, and where to find the best credit cards for spending abroad.
Provided you paid off your balance in full each month, you also wouldn't be charged any interest on these cash withdrawals - as long as you opted to pay in the local currency and not convert at the ATM.
A statement from Barclaycard said: 'We have been trialling different versions of the Barclaycard Platinum Cashback card since November 2018.
'For the most recent stage of our trial, we are testing a version which offers 0.25% cash back on everyday spend.'
It's worth getting a specialist travel credit card before you go abroad, as you'll dodge the fees other credit card providers issue.
These fees include:
The table below shows the cheapest cards for fee-free overseas spending that don't require you to hold an existing product with the provider.
They are placed in order of lowest representative APR.
|Credit card and issuer||Non-sterling transaction fee||Non-sterling cash withdrawal fee||Cash withdrawal APR||Representative APR|
|Metro Bank Credit Card (Mastercard)||0%*||0%*||14.9%||14.9%|
|Santander Zero Credit Card (Mastercard)||0%||0%||18.9%||18.9%|
|Tandem Cashback Credit Card (Mastercard)||0%||0%||18.9%||18.9%|
|Halifax Clarity Credit Card (Mastercard)||0%||0%||18.9%||19.9%|
*0% fee only applies in Europe. Non-sterling transaction fee outside the EU is 2.99%, and there's also non-sterling cash withdrawal fees. Source: Which? Money Compare. Correct 4 July 2019.
Before making your decision, make sure you check for any caveats.
The Santander card requires the transaction fees to be made in the local currency, and - like the Halifax card - has no cash withdrawal fees anywhere in the world. The Metro Bank card, by comparison, only has free transactions in Europe.
Tandem's card charges interest from day one, but also offers a cashback feature where you'll earn 0.5% on every purchase above £1 bought in the UK and abroad.
Regardless of how great your travel credit card is, you should still be vigilant when spending abroad, as it's all too easy to spend more than you need to.
These handy tips should help on your next trip:
Another option might be a , which allows you to load money onto it before you travel. These are a safer alternative to cash and allow you to limit your spending on holiday. Just keep in mind that there's no borrowing facility - so you might want to take a credit card as well to cover any emergencies.
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