Four ways to pay overseas — ranked by cost
Specialist travel credit or debit card (paid in full): near interbank exchange rates with zero or low FX fees — typically the best option for card spending and ATM withdrawals within fair-use limits. On a €1,000 holiday mix of shops and restaurants, the difference versus a standard debit card can exceed £50.
Specialist travel credit or debit card (paid in full): near interbank exchange rates with zero or low FX fees — typically the best option for card spending and ATM withdrawals within fair-use limits. On a €1,000 holiday mix of shops and restaurants, the difference versus a standard debit card can exceed £50.
Pre-ordered foreign cash from a competitive bureau or delivery service: reasonable for small cash needs at destination — taxis, markets, tips — but rarely beats top cards for main spending. Never buy currency at the airport without pre-ordering; walk-up rates can cost 10%+ more than pre-booked collection.
Standard UK debit or credit card: most charge roughly 2.75–2.99% non-sterling transaction fees plus ATM charges abroad. Fine in emergencies, not for a full holiday budget.
Dynamic currency conversion (pay in pounds at the till): almost always the worst option. The merchant sets the rate and markup. Always select euros, dollars, or local currency on the terminal and let your travel card convert.
Travel credit cards worth comparing
Halifax Clarity Mastercard: long-standing no-fee overseas spending and ATM withdrawals (interest applies to cash unless repaid immediately). No Avios earn but excellent for pure FX savings on any trip.
Halifax Clarity Mastercard: long-standing no-fee overseas spending and ATM withdrawals (interest applies to cash unless repaid immediately). No Avios earn but excellent for pure FX savings on any trip.
Barclaycard Rewards Visa: no non-sterling fees on purchases abroad; check current ATM rules before relying on it for cash.
Virgin Atlantic Reward and Reward+ Mastercard: no foreign transaction fees in the Eurozone on eligible cards — useful if you also collect Virgin Points. See /guides/best-uk-airline-credit-cards-2026 for current card comparison.
Avios-earning cards (BA Amex, Barclaycard Avios): most charge ~2.99% foreign transaction fees — strong for UK spend and Avios, poor for overseas purchases unless you hold a fee-free companion card for abroad. Use a no-FX card abroad and Avios cards at home.
Travel debit cards and prepaid options
Monzo and Starling Bank: competitive Mastercard exchange rates with no FX markup on card spending in most markets; ATM limits and fair-use policies apply — check current terms before long trips.
Monzo and Starling Bank: competitive Mastercard exchange rates with no FX markup on card spending in most markets; ATM limits and fair-use policies apply — check current terms before long trips.
Wise (formerly TransferWise) debit: mid-market rates with transparent fees on conversion and ATM — strong for multi-currency wallets and frequent travellers to several countries in one trip.
Prepaid travel cards: lock a rate when loaded — useful if you want budget certainty, but top debit cards often match or beat them on flexibility. Watch load fees and inactivity charges.
Cash, ATMs, and practical rules
ATM withdrawals abroad: even fee-free cards may charge interest on credit-card cash advances — use a debit-style travel card for ATMs when possible. Withdraw larger amounts less often to minimise fixed ATM fees levied by foreign banks.
ATM withdrawals abroad: even fee-free cards may charge interest on credit-card cash advances — use a debit-style travel card for ATMs when possible. Withdraw larger amounts less often to minimise fixed ATM fees levied by foreign banks.
Split your stack: one no-FX card for spending, a small cash buffer pre-ordered or withdrawn once on arrival, and your Avios card reserved for UK purchases and flight bookings. See /guides/how-to-book-flights-uk-2026 for paying flights on credit to preserve Section 75 on £100+ fares.
Travel insurance and GHIC: payment method does not affect medical cover — carry /guides/ghic-ehic-uk-travellers-guide card digitally for EU/EEA care. ETIAS from late 2026 for UK visitors to most of Europe — /guides/etias-uk-travellers-guide-2026.