If you’re about to head off for a holiday abroad, it’s a good idea to compare available payment methods in order to avoid hidden charges.
This guide looks at how MBNA credit cards work abroad and tells you which fees you should be prepared for.
The potential fees when travelling
Non-sterling transaction fees MBNA’s credit cards are on either the Mastercard or Visa network, which means that you shouldn’t have any problem using your card abroad. Mastercard’s and Visa’s conversion rates differ slightly from one another, with Mastercard often being a little more competitive. You can check the rates online on the Mastercard and the Visa websites. Aside from the exchange rate, you also need to consider the fees you’ll be charged by MBNA for every non-sterling transaction, which amounts to a percentage of the transaction value (see table below).
Merchant currency conversion fees (DCC) While shopping abroad, you may sometimes be asked whether you want the card payment to be made in pounds rather than in the local currency. The right answer to that is a polite “no, thanks”. Being charged in pounds means that the merchant is handling the currency conversion, often at a worse rate and with more fees than your credit card company.
Cash advance fees No matter if at home or abroad, withdrawing cash with your credit card should be your last resort. Lenders usually charge an extra fee on cash advances and interest-free billing cycles often don’t apply. This means you’ll be charged interest from the day of the transaction. When you withdraw cash overseas with one of its credit cards, MBNA charges the cash advance fee (5%) on top of the non-sterling transaction fee (2.95%). If you consider that many ATM providers also add their own charge, it’s probably worth considering alternative ways of getting hold of cash while travelling.
Hidden merchant fees Despite being less common than they used to be, you can still run into these in some non-EU countries. Sometimes merchants simply charge an extra percentage for credit card payments. Just like merchant currency conversion fees, these have nothing to do with your lender or credit card company, who won’t take responsibility for them. If in doubt, a quick question asked to the cashier before choosing the payment method will only take a few seconds and could save you a few pounds in fees.
Paying a fee of around 2.95% every time you spend on your card abroad might not sound a huge amount, but it can quickly add up. If you spent £100 a day, you’d pay an extra £2.95 each time, which would cost more than £20 over the course of a 7-day holiday.”
MBNA foreign transaction fees
Table: sorted by representative APR, promoted deals first
To make comparing even easier we came up with the Finder Score. Costs, perks and suitability across 120+ cards are all weighted and scaled to produce a score out of 10. The higher the score the better the card – simple.
Table: sorted by representative APR, promoted deals first
If the MBNA card you have (or are considering) isn’t great for overseas use, it could be worth switching to an alternative credit card. Or you could even take out a second card that won’t charge you for overseas use and only use it when you’re out of the country.
Some credit cards, known as travel credit cards, won’t charge a foreign transaction fee when you spend on your card abroad. Some will waive cash advance fees too, but interest will still apply. Read more about travel credit cards in our guide.
Some digital banks including Curve and Revolut also offer alternative ways to get around fees when paying with plastic abroad.
With Curve, for example, you can control multiple cards from your Curve card and app, and even if your card issuer charges exchange fees, Curve will convert the currency for you at the standard Mastercard exchange rate. Just be aware that restrictions and limitations do apply – you can read our full guide to find out more.
To make comparing even easier we came up with the Finder Score. Costs, perks and suitability across 120+ cards are all weighted and scaled to produce a score out of 10. The higher the score the better the card – simple.
Overall, MBNA doesn’t offer the most competitive credit cards for overseas use, due to the high fees it charges. This means that if you want to apply for a MBNA credit card for any other purpose, such transferring a balance, but you also want to use your card abroad, it’s worth taking out a second card with an alternative provider to use when spending overseas.
Approval for any credit card depends on your status. The representative APRs shown represent the interest rate offered to most successful applicants. Depending on your personal circumstances, the APR you're offered may be higher, or you may not be offered credit at all. Fees and rates are subject to change without notice. It's always wise to check the terms of any deal before you borrow. Most of the data in Finder's comparison tables is provided by Moneyfacts.
We show offers we can track - that's not every product on the market...yet. Unless we've said otherwise, products are in no particular order. The terms "best", "top", "cheap" (and variations of these) aren't ratings, though we always explain what's great about a product when we highlight it. This is subject to our terms of use. When you make major financial decisions, consider getting independent financial advice. Always consider your own circumstances when you compare products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.
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To make sure you get accurate and helpful information, this guide has been reviewed by Rachel Wait, a member of Finder's Editorial Review Board.
Chris Lilly is Head of publishing at finder.com. He's a specialist in personal finance, from day-to-day banking to investing to borrowing, and is passionate about helping UK consumers make informed decisions about their money. In his spare time Chris likes forcing his kids to exercise more. See full bio
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