Card network rates
Many UK cards use Mastercard or Visa exchange rates for overseas purchases.
Travel banking guide
Exchange Rates When Using Your Card Abroad
The exchange rate used on an overseas card transaction can affect the final sterling cost, even when your bank advertises low or no card fees.
Last updated: 2 September 2026
At a glance
8 min read · 4 key checks covered
Jump straight to the practical checks, or read the full guide below for the detail behind each one.
See the key checksQuick answer
Check whether your card uses the Mastercard or Visa rate, whether your bank adds a markup on top, and whether the merchant or ATM offers dynamic currency conversion at the point of sale - a markup that can run into double digits if you accept it.
Key checks
Start with the practical details that can change the real cost or convenience of travelling with a UK card.
Provider markups
Some accounts add fees or weekend markups on top of the network rate.
Currency choice
Choosing local currency usually avoids merchant-led conversion at the terminal.
Rates update daily, not live
Card networks set their reference rate once per business day, not continuously.
How card exchange rates work
When you pay by card abroad, the transaction usually needs to be converted from the local currency into pounds sterling.
Many debit and credit cards use rates set by the card network, such as Mastercard or Visa. Your bank or card provider may then add its own fee or markup depending on the account terms.
Both networks publish an online reference calculator - Mastercard's currency converter and Visa's exchange rate calculator - though both describe the figures as indicative only, since your own bank decides whether and how closely it follows the network's rate when billing you.
What to check
- Check whether the card uses Mastercard, Visa or another conversion method.
- Check whether the bank adds a foreign transaction fee.
- Check when the rate is applied, because the final cost can differ from the amount shown immediately.
- Use the network's own reference calculator ahead of a trip as a rough guide, but treat it as indicative rather than exact.
Does it matter whether you have Mastercard or Visa?
Mastercard and Visa do not use identical exchange rates, and independent comparisons have found small but fairly consistent differences between the two. One widely cited comparison by MoneySavingExpert, checking dozens of currency conversions, found Mastercard's rate came out marginally better than Visa's in the large majority of cases - though the gap typically worked out to only a few pounds on a purchase of around £100.
This kind of comparison can shift over time and isn't something most people can act on day-to-day, since your card's network is fixed once you've chosen an account. In practice, the fee or markup your own bank adds on top is usually a bigger factor in the final cost than the small difference between the two networks' underlying rates.
What to check
- Do not assume switching card network alone will meaningfully change your costs abroad.
- Focus on your bank's own fee or markup first - it typically outweighs the difference between networks.
Why weekend spending can look different
Mastercard and Visa update their reference exchange rates once per business day, not continuously. A transaction made over a weekend or on a public holiday is typically priced using the rate from the last business day, rather than a live rate.
This is a different thing from a specific 'weekend fee' - it's simply that the underlying reference rate can be a day or more old by the time it's applied, so the sterling cost can look slightly different from what an online currency converter shows at the exact moment you paid.
Separately, some travel money and prepaid card providers apply their own fee structures that can vary by how the account is funded or topped up. That's provider-specific rather than a rule that applies to card payments generally, so it's worth checking your own provider's terms rather than assuming a universal rule.
What to check
- Do not expect the exact live rate shown by an online converter to match your statement precisely.
- Remember weekend and holiday transactions are typically priced off the last business day's rate.
- Check whether your own provider publishes any day-specific or funding-specific fees, rather than assuming a universal rule.
Dynamic currency conversion
Dynamic currency conversion is when a shop, restaurant, hotel or ATM offers to convert the transaction into pounds for you.
It may feel reassuring because the sterling amount is shown immediately, but the exchange rate can be less favourable. Paying in the local currency usually lets your card provider handle the conversion instead.
The markup built into a dynamic currency conversion rate can be substantial - some analyses put it at 10% or more above the underlying wholesale rate at merchant terminals, and occasionally higher depending on the merchant and location. It's rarely as small as it can appear on the screen.
What to check
- Choose local currency where appropriate.
- Check the terminal before confirming.
- Do not rely only on the displayed sterling amount.
- Look at the amount shown in local currency on the terminal, not just the sterling total on offer.
Checking the rate you actually paid
There is no dedicated UK rule requiring card providers to display the exact exchange rate applied to every overseas card transaction in real time - separate transparency guidance from the Financial Conduct Authority is aimed at international money transfers, not everyday card purchases or ATM withdrawals abroad.
In practice, your provider's app or statement will usually show at least the sterling amount charged, and sometimes the original local-currency amount and rate used. Comparing this against the card network's published reference rate for that date is the most practical way to sense-check what you were actually charged.
What to check
- Check your provider's app or statement for the local-currency amount and rate applied, if shown.
- Compare that rate against Mastercard's or Visa's published reference rate for the same date as a rough sense check.
- Query the transaction with your provider if the rate looks significantly out of line.
Check before you travel
Fees, limits, exchange-rate rules and account terms can change. This guide is general information, not regulated financial advice. Check your bank's latest terms before travelling or relying on a card overseas.
FAQs
Common questions
Do Mastercard and Visa use the same exchange rate?
No. Their rates can differ slightly, and your bank may add its own charges or markups on top.
Is Mastercard or Visa cheaper to use abroad?
Independent comparisons have found small, fairly consistent differences between the two networks' rates, but the gap is usually smaller than your own bank's fee or markup, which tends to matter more overall.
What is a weekend markup?
It is an extra currency conversion charge some providers apply outside normal foreign exchange market hours.
Why doesn't the exchange rate on my statement match what I saw online?
Card networks update their reference rate once per business day, so the rate applied to your transaction reflects the date it was processed, not the exact moment you paid.
Why is paying in local currency usually important?
It usually avoids dynamic currency conversion, where the merchant or ATM provider sets the sterling conversion rate.
Continue researching
Related travel guides
Overseas card fees explainedUnderstand the fees that can sit alongside exchange rates.Read guideCash withdrawals abroadCheck ATM fees, limits and cash-specific conversion issues.Read guideDigital banks for travelCompare travel-focused digital bank features.Read guideHigh street banks for travelCompare high street account fees and packaged benefits.Read guide
Compare travel banking options carefully
Overseas card fees, exchange rates and withdrawal limits vary widely between providers. Compare the options against how you actually travel.