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If you're heading abroad this year, it's worth checking what your debit card charges for overseas use. Many standard UK bank cards add fees every time you spend or withdraw cash in another country, and those charges accumulate over a trip.

Several accounts now offer fee-free overseas spending as standard, with no monthly fee.

What does a standard card typically charge abroad?

Charges vary between providers, but a typical standard debit card applies a non-sterling transaction fee of around 2.75% to 3% on all overseas spending. Some also add a fixed charge per transaction, and a further fixed fee on cash withdrawals abroad.

To put that in context: on a £100 overseas purchase, a 3% foreign transaction fee costs around £3 more than a fee-free card. Over a two-week trip with regular card use, those charges mount up.

Dynamic currency conversion: what to decline

At a card machine or ATM abroad, you may be asked whether you'd like to pay in pounds rather than the local currency. Choosing pounds triggers dynamic currency conversion (DCC), where the merchant or ATM operator sets the exchange rate (typically less favourable than the rate your card network would apply).

Paying in the local currency will usually avoid the merchant’s DCC rate and means the Mastercard or Visa rate applies instead.

What to look for in a travel debit card

Several UK current accounts charge no foreign transaction fees on debit card purchases abroad, with no monthly account fee. Providers in this space include Chase, Starling, Monzo, First Direct and Revolut.

Four things vary between them and are worth checking directly before travelling:

Fee-free ATM allowance. Some accounts cap fee-free overseas withdrawals by month (commonly a few hundred pounds), after which a percentage fee applies. Others have no monthly cap but set a daily limit. A few distinguish between UK/EEA withdrawals and the rest of the world.

Weekend and fair-usage markups. Some app-based providers apply a markup on currency exchanged at weekends, when global FX markets are closed, and a fee once a monthly exchange allowance is exceeded. These apply to some plan tiers and not others.

Credit check type. App-only accounts typically use a soft credit check, which doesn't leave a mark on your credit file. Some traditional providers run a hard check.

Cashback terms. Where an account pays cashback on debit spending, it often applies to selected UK categories only and may not extend to overseas purchases. Caps and introductory periods are common.

Some providers also run switching incentives from time to time. These change frequently, so it's worth checking current offers directly rather than relying on a figure quoted elsewhere.

FSCS protection of up to £120,000 per person applies to accounts held with UK-authorised banks. Where a provider operates as an e-money institution rather than a bank, funds are safeguarded rather than FSCS protected — a distinction worth confirming with any provider before holding a significant balance.

Travel debit cards vs travel credit cards

A travel credit card can offer similar overseas benefits without opening a new bank account: fee-free spending abroad and, on some cards, fee-free ATM withdrawals.

Credit cards also carry Section 75 protection under the Consumer Credit Act, which debit cards don't. Section 75 can apply where the cash price is over £100 and no more than £30,000 and there is a qualifying debtor-creditor-supplier link. Note that Section 75 doesn't cover cash withdrawn from an ATM.

The main thing to check: most credit cards charge interest on cash withdrawals from the withdrawal date, even if the balance is repaid in full. A small number treat foreign cash withdrawals differently, so it's worth confirming the specific card's terms. For more, see our article on the costs of withdrawing cash on a credit card.

Applying for a credit card involves a hard credit check, which is recorded on your credit file, unlike most of the app-based accounts above.

Always make sure you can afford repayments.