Credit cards are easy to use abroad, which can mean the fees involved go unnoticed - until a statement full of extra charges arrives after the holiday. Here is a list of facts to check and steps to take before you set off on holiday to learn how your card will work and how much it will cost to use abroad. With that information, you can decide which card in your wallet will be cheapest to use when travelling. Keep in mind one card may be best for cash withdrawals and another cheapest for purchases.

1. Check for Foreign Non-Sterling Transaction Fees

Most credit cards charge a fee of around 2.75% to 3% on each foreign currency purchase, with no minimum charge — unlike cash withdrawal fees, which typically do have a minimum charge (see below). Despite this fee, it is almost always preferable to pay in the local currency and let the credit card issuer manage the currency exchange. Paying in pounds while overseas means the retailer sets the exchange rate, which is typically less favourable than the rate set by Visa, Mastercard, or Amex.

There are three ways to determine the foreign transaction fee on your credit card:

• Call your credit card's customer service line to ask

• Check your paperwork for the terms and conditions

• For a quick and quite reliable check, the Summary Box for a credit card is usually available online

The Summary Box should be a visible link on the credit card's web page. Alternatively, Google the name of your card and "summary box" or "terms and conditions" to find it - for instance, "Halifax Clarity terms and conditions". There you'll be able to find the foreign transaction fees.

For anyone with multiple cards, foreign transaction fees can vary between them, sometimes in surprising ways. While most standard high-street cards still charge a non-sterling fee of around 2.99%, the market in 2026 offers significantly more fee-free travel credit cards than in previous years. Beyond credit cards, newer 'challenger' debit cards - such as Chase and Starling Bank - now frequently offer 0% FX fees, making them vital alternatives to check alongside your traditional credit cards.

2. Check for Cash Withdrawal Fees

Most credit cards charge for cash withdrawals, usually at a rate of 3%, with a minimum £3 charge per transaction. This cash withdrawal fee is charged in addition to the foreign transaction fee if you take out cash in the local currency from an ATM while abroad. That means cash withdrawals can be subject to double fees (and they're typically charged at higher interest rates that start racking up immediately, with no grace period).

You can also find the cash withdrawal fee in the Summary Box for your card online.

3. Find out if Cash Withdrawals have a Grace Period

In addition to a cash withdrawal fee, in most cases a cash withdrawal will start accruing interest from the day the ATM is used - that is, there is no grace period on interest for getting cash from an ATM. And oftentimes a card's cash interest rate is higher than the purchase interest rate.

With no grace period, even if you pay back the full balance on time by the next due date, you'll still pay interest on any cash withdrawals you made during the statement period. A few travel-specific cards offer a grace period on cash withdrawals, but you'll only get the grace period if you pay the full balance by the next due date. Again, you can find more information in our article on No Foreign Transaction Fees Credit Cards.

Again, you can find any grace period information in the Summary Box on your credit card's web page.

4. Check Foreign Usage Fees and Cash Withdrawal Fees on your Debit Card

Debit cards carry their own foreign exchange and cash withdrawal fees, which are worth checking alongside credit cards - the cheapest option for a given trip may turn out to be either.

As of 2026, specific debit cards from Chase Bank, Starling Bank, and Virgin Money have become the gold standard for travel, often proving cheaper than credit cards for cash. These providers typically charge no foreign transaction fees and no cash withdrawal fees (though some limits may apply), helping you avoid the immediate interest charges that most credit cards apply to cash withdrawals.

Since debit cards withdraw directly from your current account, you won't incur interest charges on cash from an ATM, regardless of currency - so long as you have sufficient money in your account to fund the withdrawal.

5. Let your Bank Know You'll be Abroad

In the interest of fraud prevention, a credit card provider may freeze an account when it detects overseas use. Letting the provider know about travel plans in advance can help avoid this. We should point out that this doesn't always work - we've read many customer reviews in which consumers complain that their credit card was frozen while they were abroad - despite notifying their company ahead of time.

Summary of 5 Money-Saving Credit Card Tips

FAQs

Can I use my credit card abroad?

Most credit cards can be used abroad, but you might be charged a non-sterling transaction fee on foreign currency spending. Before you travel overseas, you might want to call your credit card company to let them know you'll be travelling so they don't lock your card when you try to use it abroad.

What's the best credit card to use abroad?

Some credit cards charge no non-sterling transaction fees. Choices for 2026 include the Barclaycard Rewards Credit Card, the Halifax Clarity Credit Card, and more, which offer fee-free spending abroad. Interest, eligibility and features vary by card and reader circumstances; compare your own card’s Summary Box.

Do you get charged for using credit card abroad?

Your credit card might charge a non-sterling transaction fee if you use it abroad. When there is an FX fee, it is typically 2.75% to 3% of the transaction.