Best and worst cards for spending abroad in 2023 – and you could save £80
HOLIDAYMAKERS will want to watch out for expensive debit and credit cards when travelling abroad this summer.
Using your card in another country could see you paying foreign exchange fees and cash withdrawal charges.
Charges usually differ from provider to provider and card to card - but they can add up quickly.
Andrew Hagger, a personal finance expert at Moneycomms.co.uk said: “Using your existing standard bank issued debit card or credit card when you’re on holiday outside the UK can prove expensive due to extra charges.
"But there are cheaper alternatives worth packing with your passport. Don’t get stung by high-cost card charges."
Charges for using a card abroad tend to fall into two categories:
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- A non-sterling transaction fee - which is usually between 2.75% and 2.99%
- An ATM withdrawal fee
Stopping off on the way to the beach and spending £5 on a drink and a bite to eat could end up costing you an extra £1.15 in fees.
While it might not seem much at first, multiple small transactions throughout the day can quickly rack up sizeable costs.
Below, we look at the best and worst credit and debit cards to use abroad this summer - and you could save up to £79.
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Best debit cards
The best travel debit cards have no spending or ATM fees overseas, so you can use them as if you are popping to the shops at home.
It will mean opening a new bank account but you can do this alongside your main account and transfer money across if you do not want to switch.
Chase
Chase Bank charges no fees for spending or ATM withdrawals.
You can withdraw a maximum of £500 per day or £1,500 per month overseas.
Plus, you can also get 1% cashback on all your spending.
Starling
Starling also charges no fees for spending or ATM withdrawals.
You can withdraw up to £300 a day using this card.
Monzo
Monzo has no exchange rate markup but you can only withdraw £250 free at ATM over a period of days.
After this, you’ll get charged 3% on any withdrawals you make over that.
Worst debit cards
TSB
TSB customers who use their debit card abroad will be charged an additional 2.99% on top of their purchase, plus an additional £1 per.
This is a non-sterling transaction fee.
For example, if you spent £50 at a restaurant, you would actually pay £52.49.
And if you spent £100, you would be charged £103.99.
You'll also be whacked with an extra charge for using an ATM.
The 2.99% non-sterling transaction fee will be added to the withdrawal, as well as a 1.5% ATM charge.
This will be a minimum of £2 and a maximum of £4.50.
So if you wanted to get £100 out of the bank to spend on your holiday, you'd end up forking out an extra £4.99.
If you wanted to take out a bigger chunk of £1,000, you'd end up paying an extra £44.92.
HSBC
If you bank with HSBC, you might want to think twice about taking your card abroad with you.
A non-sterling transaction fee of 2.75% will be added to anything you buy.
So if splash out on a new pair of £250 sunglasses, you'll actually end up paying £256.88 - an additional £6.88.
As with HSBC, there is also an additional ATM charge if you want to withdraw some cash while you're away.
The 2.75% non-sterling transaction fee will be applied, plus a 2% ATM charge.
So if you took out £500 in cash, you'd pay an extra £23.76.
Lloyds Bank
Lloyds Bank also charges a 2.99% non-sterling transaction fee - the same as TSB.
But you won't have to pay the additional £1 charge.
This means if you bought something at a shop for £50, you'd pay an additional £1.49.
While this may not seem like much, if you did it over the course of your holiday, it could soon add up.
There are also additional costs if you choose to use an ATM.
The 2.99% non-sterling fee will be added, plus a charge of £1.50.
Taking £250 out of an ATM would see you pay an extra £8.98.
Best credit cards
As with debit cards, there are fees you need to be aware of when spending on a credit card abroad.
But if you splash out on any really expensive purchases when you are abroad, then it could be worthwhile.
This is because you're protected when any larger purchases (such as booking flights and hotels) with of the Consumer Credit Act.
Transactions costing between £100 and £30,000 are covered, and only valid with credit cards — not cash, debit cards, loans or buy now pay later services.
Alastair Douglas, chief executive of TotallyMoney, said you should also do your research before you think about taking out a new credit card.
He added: "It’s worth remembering that not everybody will have access to the best in market offers, so check the information on your credit report is correct, and use an eligibility checker before applying.
"That way you’ll know your chances of acceptance and avoid damaging your credit score."
Barclaycard Rewards
Unlike most credit cards, this particular Barclaycard doesn’t charge any fees or interest charges on purchases or overseas cash withdrawals.
But this only applies if you pay your credit card statement in full by the due date.
As a small added bonus, you also get 0.25% cashback on your spending.
Halifax Clarity
Andrew describes the Halifax Clarity credit card as a "long time travel favourite".
This is because there is no exchange rate markup for purchases or ATM cash transactions.
But it's important to note that you will pay interest on any cash withdrawals.
On a £100 ATM withdrawal, this works out at around £2.30 for 30 days, according to Andrew.
Worst Credit Cards
Virgin Money
If you have a Virgin Money credit card, you may want to make a note of these extra charges you could rack up for spending abroad.
An ATM withdrawal will come with a 5% fee plus a 2.99% non-sterling transaction fee.
So if you withdrew £250, you'd end up paying an extra £19.98.
And if you took out £1,000, you would pay a whopping £79.90 in additional fees.
If you're just wanting to use your card for spending in shops and restaurants, then you'll be charged a 2.99% non-sterling transaction fee.
So spending £100 in a shop would cost you an additional £2.99.
MBNA
MBNA also charges a 5% fee for customers using an ATM overseas plus a 2.95% non-sterling transaction fee.
So withdrawing £100 will see you charged an extra £7.95.
While purchases made with your debit card will all be subject to the 2.95% non-sterling transaction fee.
A £1,000 spend would see you charged £29.50 in fees alone.
Santander
An ATM withdrawal with your Santander credit card will come with a 3% fee of at least £3, plus a 2.95% non-sterling transaction fee.
So if you withdrew £500, you'd end up paying an extra £29.74.
If you use your card for spending, then you'll be charged a 2.95% non-sterling transaction fee.
So spending £100 in a shop would cost you an additional £2.95.
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Elsewhere on The Sun, we revealed the common credit card mistake that could be costing you thousands.
And an expert spoke about how to save £1,000s on kids this summer holidays.
Do you have a money problem that needs sorting? Get in touch by emailing [email protected]