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Using a UK Credit Card Abroad: Exchange Rates, Fees and Paying in Pounds

By PointsExplainedLast reviewed

Check your card's non-sterling fee before you travel

Your pre-contract information and card terms set out the charges, including any non-sterling fee. If it is high and you travel often, consider a card without one.

Pay in the local currency unless you have compared

When a terminal offers pounds, check the exchange rate and mark-up it shows against your card's own rate and fee before accepting.

Keep cash off the credit card

Withdrawing cash or buying travel money on a credit card usually triggers a cash fee, and some issuers charge interest from the same day.

Save your issuer's overseas number

Report a lost or stolen card straight away; you are not liable for misuse after you have reported it, unless you acted fraudulently.

Where this comes from

Sources

The documents this guide relies on. If one has changed since we read it, the document is right and this guide is out of date.

  1. Barclaycard: Using your Barclaycard when travelling abroad

    Conversion at the payment scheme's daily exchange rate plus non-sterling fee, combined rate on statement; cash transaction fee on foreign currency withdrawals; some cards have no non-sterling fees; no need to tell Barclaycard about travel.

    barclaycard.co.uk · Accessed
  2. American Express UK: Cashback credit cards

    American Express sets its exchange rate daily; US dollar spending converted directly to sterling; other currencies converted to US dollars then sterling.

    americanexpress.com · Accessed
  3. Visa UK: Dynamic Currency Conversion explained

    DCC is an option to pay in your home currency, which includes an exchange rate and additional fees; Visa requires merchants and ATMs to display amounts in both currencies, both currency symbols, the exchange rate and any fees or mark-up on screen and receipt; merchants should give a choice and must not choose for you; no steering by language or procedures such as font size or colour; decline and report if pressured; declining does not affect ability to pay or withdraw cash.

    visa.co.uk · Accessed
  4. NatWest: What are credit card interest rates?

    Interest charged straight away from the day cash is taken out.

    natwest.com · Accessed
  5. Barclaycard: Cash interest rates and fees

    No interest on cash if main balance paid in full by due date; buying foreign currency, travellers' cheques and prepaid currency cards treated as cash-like transactions.

    barclaycard.co.uk · Accessed
  6. HSBC UK: What is a credit card interest-free period?

    Buying foreign currency and withdrawing cash can carry higher fees.

    hsbc.co.uk · Accessed
  7. Consumer Rights (Payment Surcharges) Regulations 2012, regulation 6B (legislation.gov.uk)

    Surcharge ban (reg 6A(1)) applies only where both payment service providers are in the UK; where only one is, only reg 6A(2) (fee not to exceed cost) applies.

    legislation.gov.uk · Accessed
  8. Consumer Rights (Payment Surcharges) Regulations 2012, regulation 6A (legislation.gov.uk)

    Ban on fees for consumer card payments; fee must not exceed the cost of the payment instrument (6A(2)).

    legislation.gov.uk · Accessed
  9. FCA: Fraudulent payments

    Credit card unauthorised payment refund rules; 13-month reporting window; up to £35 liability for unreported lost/stolen cards.

    fca.org.uk · Accessed
  10. Payment Services Regulations 2017, regulation 77 (legislation.gov.uk)

    No liability for losses after notification of a lost or stolen instrument, except where the payer acted fraudulently.

    legislation.gov.uk · Accessed
  11. Financial Ombudsman Service: Problems with goods and services (Section 75 and chargeback)

    Travel company failure: ATOL/ABTA cover and the option of a section 75 or chargeback claim.

    financial-ombudsman.org.uk · Accessed
  12. Consumer Credit (Disclosure of Information) Regulations 2010, regulation 3 (legislation.gov.uk)

    Pre-contract credit information includes charges for using a payment method and other charges under the agreement.

    legislation.gov.uk · Accessed
Questions

About this guide

Should I pay in pounds or in the local currency?

It is your choice. Visa requires a DCC offer to show the exchange rate and any fees or mark-up so you can compare. If you pay in the local currency, the amount is converted using the exchange rate your card applies (Barclaycard, for example, uses the payment scheme's rate) and your issuer adds its non-sterling fee, if it charges one.

Do I need to tell my card provider I'm going abroad?

It depends on the issuer. Barclaycard says it is not necessary for its cards; check with your own provider.

Can a shop abroad charge me a fee for paying by card?

The full UK ban applies only where both the business's payment provider and yours are in the UK. Where only one of them is, the regulations say only that a fee must not exceed the business's cost of accepting that payment method.
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