Whether you travel abroad for the odd holiday or try to hop overseas as often as possible, using a travel money card means you’ll avoid paying additional fees on your spending.
Using a debit or credit card that isn’t designed for overseas spending can be really expensive. You’ll pay transaction fees of 2.75% to 2.99% every time you spend on your card, and there could be fees on top for withdrawing cash. Charges can rack up to hundreds of pounds if you’re not careful.
For example, you pay 2.95% in foreign transaction fees each time you use a Santander debit card abroad. So for every £100 you spend, you’ll pay £2.95 on top. If you withdraw cash using your credit card, there are further charges to pay. You’ll pay the £2.95 fee, and an additional £3 on top, or around £6 in total.
Fortunately, there are plenty of cards to pick from that offer fee-free spending and cash withdrawals abroad.
Best credit cards for travel
If you use a fee-free travel credit card, you also benefit from extra protection as you spend. Your purchases between £100 and £30,000 are protected under Section 75 of the Consumer Credit Act 1974 if, for example, the goods are damaged or a supplier goes bust.
Halifax Clarity Mastercard
Barclaycard Rewards Visa
Best prepaid cards for travel money
Revolut
Currensea
Travelex
Best debit cards for travel money
You can also get debit cards that don’t charge fees for using them abroad, or for overseas cash withdrawals. But, unlike a credit card, you will need to open a current account to get one of these cards.
Virgin Money
Starling
Monzo
Ultimately, which card you use for holiday spending may depend on which one you are accepted for. Even if you have a poor credit score, there will most likely be options for you, such as a prepaid card or debit card.
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