Travelling abroad from the UK and using a card to withdraw money from an ATM or for shopping can be a costly experience due to ‘foreign transaction fees’.
These are charges applied by your bank for using a card issued from your home country and can be around 3% (Lloyds Classic or Halifax Current Account) as well as any additional charges by the card machine or retailer. So spending £100 could cost you at least £103. Some debit cards can charge fixed flat fees of 50p to £1.50 each and every time you use your card overseas.
Depending on the type of account you have and what bank will depend on whether there are any charges, how they’re applied, when and how much so be sure to check with your bank if you are considering using their cards.
There are however a number of no fee cards that are perfect for travelling with easy to use apps, quick transfer of money from your bank account and, you can set up accounts for your kids so they have their own spending money that you can track whilst on holiday.
Before we get into our favourite no fee card provider one option that often comes up when abroad is whether to pay in the local foreign currency or pay in pounds sterling, euro, dollar etc (depending on where you are from).
Paying in a foreign currency
If you have a Visa card and choose to pay in a foreign currency Visa will convert your payment into your currency ie pounds sterling using their standard exchange rate. Then they’ll deduct the amount in pounds sterling from your account.
Paying in your own currency ie pounds sterling
If you choose to pay in pounds sterling the retailer or cash machine owner will convert your payment. They may also add on additional charges. This will often cost more than paying in the local currency.
Top Debit and travel Credit Cards to use overseas
The best debit card to use overseas is the Starling Bank card with no fees or interest on overseas spending and withdrawals. This is based on a maximum of six transactions per day and a maximum withdrawal of £300 per day.
The best credit card for travel and to use overseas is currently the Halifax Clarity Card. It has 0% fees in EU countries and worldwide and offers up to 15% cashback at certain retailers. This can be very rewarding for cash returns on booking flights and accommodation. Like most rewards and benefits credit cards there will be annual fee to pay and its imperative the monthly balance is paid otherwise a variable interest rate of a least 25% may apply.
The best travel card
In our opinion the best travel card to use, that we have for all our overseas trips, is Revolut. There are a range of card options available, with an easy ‘no paperwork’ application, user friendly and easy to navigate App interface, digital wallets for Apple and Android, easy transfer of money from your own accounts and; you can set up kids cards so they have their own money to spend which you can track and control.
Below provides a brief summary of the types of Revolut cards available and their benefits and restrictions. Like all cards always check the details on which will suit you and your personal circumstances.
There is currently a £20 welcome payment if you open a Revolut account and spend £20 within the first month. Check out Welcome Bonus Revolut for more information.
This information does not constitute financial advice, please do your own research to ensure it’s right for your specific circumstances and requirements.