Whether you’re buying something from overseas in a foreign currency or taking out cash on holiday abroad, you’re often charged when using your debit card for international transactions. You can save money by choosing a debit card that charges no or low foreign transaction fees to use for this purpose. We also have separate guides for credit cards to use overseas and prepaid travel cards that you can top-up before you go.
"Paying fees when you make foreign transactions with your debit card needn’t be a fact of life. There’s a good selection of cards that lets you save money on these. The Chase current account charges no fees for both overseas cash withdrawals as well as overseas card transactions, as does Starling Bank.
There’s also the Monese pre-paid multi-currency card, which has no foreign transaction fees on its Classic and Premium plans up to set limits for cash withdrawals. You’ll pay a monthly fee for these though.
App-based bank Revolut gives you fee-free foreign card transactions and cash withdrawals on weekdays up to a total of £1,000 a month on its free Standard plan. You can withdraw £200 a month from cash machines before you start paying fees. The big banks generally charge relatively high fees on at least their free accounts.
Alternatively, you can use credit cards that charge no foreign transaction fees to make overseas purchases. These include Santander’s All in One credit card and cards from the Royal Bank of Scotland and NatWest. It’s not generally a good idea to use a credit card to withdraw cash as you’ll usually pay a fee for this and there’s no interest-free period as with purchases. It can also affect your credit score. However, there are some that let you withdraw cash abroad cheaply."
| Bank | Best for | Expert score |
|---|---|---|
| Starling | Best for fee free spending & customer service | 4.7/5 |
| first direct | Best for fee free spending & added extras | 4.5/5 |
| Chase | Best for fee free spending & cashback | 4.4/5 |
| Kroo | Best for fee free spending & in-credit interest | 3.9/5 |
Best for fee free spending & cashback
Finder Score 4.0★★★★★
What's better than fee free spending abroad? Earning cashback on your fee free spending abroad. New customers with Chase can earn 1% cashback on their debit card spending for 12 months, up to £15 a month. This applies to groceries, meals out, entertainment, fashion, homeware, travel and holidays. So not only can you earn cashback when booking your holiday, but you can also earn 1% when using your card overseas.
Best for fee free spending & customer service
Finder Score 4.7★★★★★
Starling has zero fees for spending overseas and was also our winner in the Finder Customer Satisfaction Awards 2023, with 94% of its current account holders saying they would recommend it to a friend. Its app is one of the highest scoring apps in the Apple app store and Google Play Store. Meaning you'll not only benefit from being able to use your card fee free when travelling, but you'll also be able to easily manage your money on the go.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 15% EAR variable.
Best for fee free spending & added extras
Finder Score 4.5★★★★★
first direct has joined the small club of banks that don't charge fees for using a debit card abroad. You'll find that first direct often has a cash bonus in place if you switch your current account to the bank. Plus, as a first direct current account holder, you get access to its Regular Saver, which has one of the most competitive rates available on the market.
Best for fee free spending & in-credit interest
Finder Score 4.0★★★★★
| Minimum opening balance | £0 |
|---|---|
| Account fees | £0 |
| Interest (AER) | 3.85% AER |
While you may be focused on spending when looking for a debit card to use abroad, don't forget that you can also earn interest on the money you aren't spending. Kroo Bank has a competitive in-credit interest rate on current account balances up to £85,000, in addition to fee free spending overseas. Meaning you can save money when using your card on holiday and earn interest on whatever you don't spend.
| Minimum opening balance | £0 |
|---|---|
| Account fees | £0 |
| Interest (AER) | 3.85% AER |
"To choose the best card for each category shown above, our experts analysed app ratings, overseas fees, exchange rates, customer service, account access and extra features. In this particular case, these were selected from our list of debit cards that have no fees for being used abroad, not the whole market. If we show any ‘promoted’ picks, these are based on factors that include special features or offers and the commission we receive. If we show any ‘best’ picks, there are our banking editor’s top picks for different categories and are chosen based on factors that include cost, purpose, rewards and extras. What you need from a debit card is personal, so these picks are just a guide to help you with your decision."
Revolut Standard Account
Finder Score 4.3★★★★★
Revolut is ideal for keen travellers. For a start, you can use the Revolut card to spend and withdraw cash abroad and no fees will be charged, provided you stay within your monthly limit and carry out transactions on a weekday. Monthly limits will depend on the plan you have. You can also convert money in 36 currencies within the app, meaning you can convert some spending money into the local currency before you go on holiday. Certain plans also offer other benefits such as travel insurance, airport lounge access, car hire excess insurance and RevPoints on accommodation if you book through Revolut Stays. RevPoints are earned through everyday spending, turning card purchases into perks.
Monzo Free Account
Finder Score 4.6★★★★★
If you open a Monzo bank account, you'll also receive a debit card that can be used for fee-free spending abroad. Whenever you use your card to make a purchase overseas, Monzo uses the Mastercard exchange rate without adding any extra fees to the transaction. What's more, if Monzo is used as your main bank account, you'll also benefit from unlimited fee-free cash withdrawals in EEA countries and up to £200 fee-free every 30 days in countries outside the EEA. Different limits apply to different plans. Some plans also include additional benefits such as worldwide travel insurance and mobile phone insurance.
Representative example: If you use an arranged overdraft of £1,200, you'll be charged interest at 39% EAR variable.
Monese Free Account
Finder Score 3.8★★★★★
| Minimum opening balance | £0 |
|---|---|
| Account fees | £0 |
| Interest (AER) | 0% AER |
The Monese prepaid multi-currency card enables you to access your money at all times. You can withdraw funds wherever you are in the world at the wholesale currency exchange rate. The card can be topped up with cash at more than 84,000 payment points across the UK and Europe, and if you choose the Premium plan (which charges a monthly fee), you can spend on your card and withdraw cash up to a set limit without paying a fee. Should you prefer the free Starter plan, a fee of 2% will apply to foreign transactions.
| Minimum opening balance | £0 |
|---|---|
| Account fees | £0 |
| Interest (AER) | 0% AER |
A foreign transaction fee is a charge that’s applied by your bank whenever a currency conversion is required. For example, if you make a payment online using your UK debit card on a US website, your bank needs to exchange pounds sterling to US dollars to process the payment, and it might charge you a fee for this.
The foreign transaction fee is usually around 3% of the transaction value. This can end up being costly if you’re making a large purchase, or if you’re spending abroad on a regular basis. For example, if you bought something on a US website for £300 and the bank applied a 3% foreign transaction fee, you’d be hit with a £9 fee. This may not seem like much, but if you’re making payments like these every month, it can quickly add up.
You usually receive a debit card when you open a current account. You can use this card to access the money in your account to make everyday purchases in-store or online and withdraw cash from an ATM. Depending on the provider, some debit cards won’t charge a foreign transaction fee when you spend on them abroad or make a purchase on an overseas website. Using one of these cards could save you a considerable amount of money in the long run.
Here are some of the benefits you can expect from using a debit card with no foreign transaction fees:
Although using your debit card when overseas gives you quick and easy access to money, it pays to find out just how much you’ll end up paying in other fees and costs. Some cards might charge the following:
"I chose Starling because I was attracted by the monthly interest rate on any balances held in a current account. Also the lack of fees that are normally charged on any foreign transactions or cash withdrawals abroad.
If there’s one thing you’d tell a friend who’s thinking of getting this, what would it be?
It would be the fact that I would not be charged interest on foreign transactions like restaurant bills, holiday shopping and cash withdrawals whilst on holiday."
There are multiple options to consider when it comes to spending money overseas. Here’s how debit cards compare to popular alternatives like prepaid travel money cards and credit cards:
Although it can be easy and convenient to stick with your existing bank account and use your existing debit card for purchases and cash withdrawals on holiday abroad, doing so could work out to be very expensive. Some debit cards charge a foreign transaction fee of around 2.99% on all overseas purchases. So, if you were to pay for a meal costing £100, this would add an extra £2.99 to your bill that your bank would pocket. It might not sound like a huge sum, but it can quickly add up each time you spend over the course of your holiday.
What’s more, if you withdrew £100 cash on your card abroad, you’d be charged the 2.99% foreign transaction fee (£2.99), plus a cash advance fee on top. This cash advance fee is also often around 2.99%, so that’s another £2.99 to pay. In total, your £100 cash withdrawal would cost you £5.98.
Learn more about the disadvtanges of using a debit card abroad.
There’s no need to pay foreign transaction fees when you’re using your debit card abroad or buying something from an overseas website. There are a number of fee-free options to choose from that will save you money. Otherwise, you could end up paying fees of up to 3% of the value of the transaction, which will add to your costs significantly, especially if you’re on holiday abroad for days or weeks.
Finder scores, in blue, are based on our expert analysis. We also show reviews from users, where we've received more than 10, with a score in yellow. We gather more reviews from customers every year in Finder's customer satisfaction survey.
To find out more, read our full methodology.
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