Whether you’re on a two-week beach break or short city streets, small fees abroad can quietly drain your budget. Even with one of our “top choice” travel cards, there are a few simple tricks that can stretch your holiday money further.
Having visited over 40 countries on six continents, I’ve learned how to sidestep poor exchange rates, dynamic currency conversion, and ATM surcharges and how to choose the right payment method for every situation.
This guide complements our “Best Cards to Spend Abroad” comparison by showing you exactly how to use your cards and cash most effectively once you arrive.
How to maximise your spending power abroad
Getting Cash
Pre-order physical currency – The credit, debit, and pre-paid cards in our list are absolute cheapest way to spend money abroad. If however, you feel the need for physical currency, then always order it in advance to get the cheapest rate, even if you need it in a hurry. Many bureau de change allow pre-ordering as little as 2 hours before collection. See our guide on getting euros from the Post Office for more information.
Never change money at the airport – Sometimes you just need/want to carry cash. If so be sure not to change it at the airport. You’ve left it too late, they’ve got you over a barrel and they know it. You’ll be lumbered with the worst rate, and that’s no way to start a holiday.
If you absolutely must change money at the airport, ferry terminal, or train station, always pre-order. You can usually do this up to four hours in advance and you’ll enjoy a better rate. Instead try to leave yourself plenty of time to change money. That way you shop around for the best rate.
Don’t ‘buy’ cash on a credit card – Almost all credit cards charge a fee for withdrawing cash (Barclaycard Rewards excluded), even if you repay in full. Buying foreign currency from a bureaux de change, even if it’s online, will count as a cash withdrawal. Use one of our top recommended debit cards instead, or a smart card such as Currensea.
Paying by card
Always pay in the local currency – Many overseas ATMs, restaurants, and shops will ask you if you’d like to pay (or withdraw) in pounds, when using your credit/debit card. If you pay in pounds, what happens is that the retailer does the currency conversion for you.
Rates are almost always worse than letting your own lender do the conversion. ALWAYS always pay in the local currency. This trick is used extensively in Spain and can be a nice little earner the banks/retailer.
Get the right credit card and enjoy the cheapest rates – most credit card providers add roughly 3% to the exchange rate they get when changing money themselves, this is called loading. None of the we list load so any of those listed above are a safe bet.
Highstreet Debit cards are the worst offenders – While many credit cards load, nearly all debit cards load and charge a £1.50 per transaction. The worst offenders are: Barclays, Lloyds TSB, Halifax, RBS, Co-op, Santander etc…
Avoid using these cards abroad. If you want to use your Highstreet bank current account, consider getting a Currensea Card to avoid charges from your bank.
Find fee-free ATMs – The cards in this list might not charge for ATM withdrawals but unlike in the UK, many ATM operators abroad do charge. Before you travel make a mental note of fee-free ATMs in the country you’re going to travel.
Spain and Portugal – In some countries ATMs charge for withdrawals. This is nothing to do with your bank, but solely down the owner of the ATM. Machines in Spain and Portugal are terrible for this. In Spain always look for a ING or Deutsche Bank machines these are free. In Portugal, use the MB ATMs outside Post Offices. Never use Euro ATM, or Santander. These have some of the highest charges around.
Frequently asked questions
What are the best debit and credit cards for spending abroad?
The Trading 212 debit card is currently the best debit card to spend aboard. While Halifax Clarity is best credit card for travel.
For those that only have a high street bank account, Currensea is the best card to use.
Debit card vs credit card for foreign spending which is better?
Debit cards are better for day to day spending when you travel, while credit cards are better for larger one-off purchases.
Typically the best time to use credit cards when travelling abroad is when buying single items over £100. This could be anything from train or airline tickets to events, or hotels.
This is because when buying items of over £100 and up to £30,000 you have additional protection under Section 75 of the consumer credit act, meaning the credit card provider is jointly liable for the goods/services in the event something goes wrong. That’s not all though, credit cards often carry additional benefits such as cashback, or airmiles.
Debit cards are best used on items below £100 where Section 75 wouldn’t come into play anyway, so are great for day to day spending abroad, and ATM withdrawals.
Ideally you’d have both a specialist credit card and a debit card, that way you’re covered for most eventualities and can be sure you’re getting the most for your money.
Is the visa or Mastercard exchange rate better?
There’s a common misconception that Mastercard offers better foreign exchange rates than VISA, but that isn’t necessarily true. Both companies set their exchange rates daily, and on any given day one may be better than the other, but there’s no hard and fast rules or underlying trend.
Even if there were, it doesn’t mean it would be better during the period you are actually spending.
If you really want to maximise your spending power abroad, then look for a card such as Trading 212 which uses the interbank exchange rate rather than the card scheme rate.
Is the Visa/Mastercard rate better than the Interbank exchange rate?
No. Visa and Mastercard add markup on the interbank rate to protect themselves against current fluctuations. For popular currencies, this might be as little as 0.12% over the interbank rate, but for more exotic currencies it could be as much as 1.5%.
Is it safe to pre‑order cash online?
Yes, choose a reputable provider (Post Office, or established bureau de change). Pay attention to pick‑up deadlines and verify you’re not charged hidden commissions.
How much cash should I carry?
Typically €50–€100 for small vendors or emergencies. Ideally in small bills, so be wary of ATMs spitting out €50, €100 notes. Some countries such as Germany, and Montenegro are still very cash orientated, so you may need to carry more.