Using your debit and credit cards abroad is convenient, but the fees, security and quirks differ from spending at home, and getting it wrong can cost you. Knowing how to use your cards abroad helps you spend cheaply and safely. This guide explains what to know about using your cards abroad. It is general information, not financial advice, so check your own cards' terms and fees and compare current options before you travel.
Debit and credit cards abroad
Both debit and credit cards can be used abroad to pay and withdraw cash, but they behave differently. Credit cards can offer purchase protection and are useful for larger payments, while debit cards draw straight from your account. The fees on both vary by card. Understanding the differences, and that a credit card offers protection a debit card does not while both can carry foreign fees, helps you choose which to use for what when spending abroad, rather than treating them the same.
Non-sterling transaction fees
Many cards charge a non-sterling transaction fee, a percentage added to every foreign-currency purchase, which quietly increases the cost of everything you buy abroad. Some specialist cards charge nothing. Our guide on avoiding hidden fees abroad covers this. Knowing whether your card adds a non-sterling fee, and using a fee-free card for foreign spending if it does, is one of the most important things to check, as this fee applies to every single transaction and adds up over a holiday.
ATM withdrawals
Withdrawing cash abroad with your card can attract fees, both a withdrawal or non-sterling fee from your card and sometimes a charge from the ATM operator. These make frequent small withdrawals expensive. Using a fee-free card and making fewer, larger withdrawals reduces the cost. Being aware of withdrawal fees, choosing a card that does not charge them for cash abroad, and limiting how often you withdraw helps you avoid paying a premium each time you take out cash on your card.
Avoid cash on credit cards
Withdrawing cash on a credit card is particularly expensive, usually attracting a cash advance fee and interest from the day of withdrawal even if you clear your balance, on top of any foreign fee. This makes it one of the costliest ways to get cash. Using a debit or prepaid card for cash instead, and keeping your credit card for purchases, helps you avoid these heavy charges that catch out travellers who use a credit card at an ATM abroad.
Contactless and mobile payments
Contactless and mobile payments increasingly work abroad as they do at home, letting you tap your card or phone in many countries for convenience and security. The same fees as the underlying card apply, so a fee-free card stays fee-free via your phone. Taking advantage of contactless and mobile payments where accepted, with a low-fee card, adds convenience without extra cost, though it is worth checking that your destination widely accepts them, as some places still rely more on cash or chip and pin.
Tell your bank or check first
Foreign transactions can sometimes trigger a security block, so it can be worth telling your bank you are travelling, or checking whether they need to know, as some no longer require notice. Knowing your providers' overseas contact numbers is wise too. Making sure your cards will work where you are going, and having a way to contact your bank if a card is blocked, helps prevent the frustration of a frozen card abroad and ensures you keep access to your money throughout the trip.
Always pay in local currency
When a card machine or ATM offers to charge you in pounds rather than the local currency, always choose local currency, as paying in pounds uses a poor conversion rate that costs you more. Our guide on whether to pay in pounds or local currency explains. Consistently declining the pay-in-pounds offer and choosing local currency lets your own card convert at a better rate, avoiding one of the most common and easily avoided extra costs of using your cards abroad.
Fraud and security
Stay alert to card fraud and security abroad: keep your card in sight where possible, cover your PIN, use trusted ATMs such as those at banks, and monitor your transactions. Report anything suspicious promptly. Our guide on what to do if your card is lost or stolen abroad covers problems. Taking sensible precautions to protect your card and PIN, and watching your account for unfamiliar transactions, helps you avoid and quickly address fraud, which can otherwise be a serious problem when you are far from home.
Chip and PIN, signatures and acceptance
Card acceptance and methods vary by country, with some places preferring chip and PIN, others using signatures or contactless, and a few still favouring cash. Certain card networks are more widely accepted than others in some destinations. Being aware that acceptance and payment methods differ, and that not everywhere takes every card, helps you prepare, perhaps carrying a widely accepted card and some cash. Checking how card-friendly your destination is means you are not caught out by a card that is not accepted.
Carry a backup
Always carry a backup card, kept separately from your main one, so that a lost, blocked or unaccepted card does not leave you stuck. A second card on a different network, plus some cash, provides resilience. Our guide on the best way to take money abroad covers building a mix. Having a backup means a problem with one card is an inconvenience rather than a crisis, ensuring you can still access your money abroad whatever happens to your primary card.
Set up your apps before you go
Before travelling, make sure your banking and card apps are installed, working and accessible on your phone, as they let you check balances, freeze a lost card, and track spending while away. Sorting this in advance is far easier than at home in a hurry abroad. Our guide on what to do if your card is lost or stolen abroad shows why app access matters. Having your apps ready before you leave means you can manage and protect your money easily throughout the trip.
Know your limits
Be aware of your cards' spending and withdrawal limits, as daily ATM limits or transaction caps could catch you out when you need a larger amount abroad. You can sometimes adjust limits in advance through your provider. Knowing your limits, and arranging any temporary increase you might need before you travel, avoids the frustration of a card declining a legitimate larger payment or withdrawal while away, ensuring you can access the money you need when you need it without an unexpected cap getting in the way.
In short
Using your cards abroad is convenient, but check the fees first: many charge non-sterling transaction and ATM withdrawal fees, and withdrawing cash on a credit card is especially costly. Always pay in local currency, use contactless where accepted, and consider telling your bank you are travelling. Stay alert to fraud, note that acceptance varies by country, and always carry a backup card and some cash. This is general information, not financial advice, so check your own cards' fees.
Find more in our Travel Money guides.