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:

• 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.

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.