Card network rates
Many UK cards use Mastercard or Visa exchange rates for overseas purchases.
Updated 28 June 2026 - Travel banking guide
Exchange Rates When Using Your Card AbroadWhat to check before travelling
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.
Quick answer
Check whether your card uses the Mastercard or Visa rate, whether your bank adds a markup, and whether the merchant offers dynamic currency conversion at the point of sale.
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.
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.
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.
Weekend markups and currency allowances
Some providers add a weekend markup or restrict fee-free currency exchange to a monthly allowance. This can matter if you travel often or spend in larger amounts.
A bank can still be useful for travel while having limits that are easy to miss. The key is to compare the account rules against your expected use.
What to check
- Check whether weekend exchange markups apply.
- Check monthly exchange allowances and what happens after they are used.
- Check whether paid plans change the allowance.
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.
What to check
- Choose local currency where appropriate.
- Check the terminal before confirming.
- Do not rely only on the displayed sterling amount.
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.
How this guide fits BankAdvisor
BankAdvisor explains banking differences so readers can compare options fairly. Read our editorial guidelines and review process to understand how we approach independent banking content.
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.
What is a weekend markup?
It is an extra currency conversion charge some providers apply outside normal foreign exchange market hours.
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
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Compare travel banking options carefully
Use the travel comparison guides to compare features, fees and limitations without assuming any single bank is best for everyone.