Foreign transaction fees
Some banks charge a percentage fee when you spend in a currency other than sterling.
Travel banking guide
Overseas Card Fees Explained
Using a UK bank card overseas can be convenient, but the cost depends on your bank, account type, card network and how the transaction is processed.
Last updated: 2 September 2026
At a glance
7 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
Before travelling, check whether your bank charges a foreign transaction fee (commonly around 2.75%-2.99% of the transaction on standard accounts, though many packaged, student and digital-first accounts waive it), whether fee-free spending is capped, and whether better travel features require a paid account tier.
Key checks
Start with the practical details that can change the real cost or convenience of travelling with a UK card.
Account-tier limits
Fee-free spending can depend on account type, monthly allowance or fair-use rules.
Local currency matters
Paying in sterling abroad can add conversion costs through dynamic currency conversion.
Card type affects protection
Credit cards carry legal purchase protection abroad that debit cards do not.
What are overseas card fees?
Overseas card fees are charges that may apply when you use a UK debit or credit card outside the UK, or when you buy something online in a non-sterling currency.
The most common charge is a foreign transaction fee, sometimes called a non-sterling transaction fee. This is usually a percentage of the converted purchase amount.
Rates on standard current accounts commonly sit around 2.75%-2.99% of the transaction, though this varies by provider and account tier, and many packaged, student or digital-first accounts waive it entirely. On £800 of holiday spending, a 2.75% fee works out at roughly £22 - easy to miss if you only check the exchange rate and not the fee sitting on top of it.
What to check
- Check the percentage fee for non-sterling purchases.
- Check whether the account has a monthly fee-free allowance.
- Check whether the rule differs for debit cards, credit cards and cash withdrawals.
- Work out roughly what the fee would cost in pounds for your likely spending, not just the percentage.
Card spending abroad
Some UK current accounts are designed to be inexpensive for overseas card spending. Others may charge a standard foreign transaction fee every time you pay by card abroad.
Digital banks often promote travel-friendly card spending, but the detail can still vary by plan, currency, weekend, fair-use rule or withdrawal type.
Cash withdrawals are often charged separately from card purchases, and can end up costing more. Credit card cash withdrawals typically carry their own fee (commonly around 2.5% with a minimum charge of a few pounds) and start accruing interest immediately, with none of the interest-free period that applies to purchases. Add an ATM operator's own charge on top, and a cash withdrawal abroad can cost noticeably more than a card purchase of the same amount.
What to check
- Check whether fee-free card spending applies worldwide or only in certain currencies.
- Check whether weekend markups or fair-use limits apply.
- Carry a backup card in case one card is blocked, lost or declined.
- Check whether cash withdrawal fees are charged at a different rate to card purchases.
Contactless, chip and mobile wallet payments abroad
Apple Pay, Google Pay and other mobile wallets use the same underlying debit or credit card and the same fee structure as the physical card, so paying by phone or watch does not usually add or remove a foreign transaction fee.
Chip and PIN, contactless and mobile wallet payments are all processed the same way by the card network. The fee (or fee-free status) attached to the underlying card is what determines the cost - not which of these methods you tap or insert at the terminal.
What to check
- Do not assume paying by phone avoids foreign transaction fees.
- Check the card's own fee structure rather than the payment method used.
- Keep a physical backup card in case a terminal does not accept contactless or mobile payments.
Paying in pounds at the terminal
When a card machine or ATM abroad asks whether you want to pay in pounds or the local currency, paying in pounds usually means the merchant or ATM provider chooses the conversion rate.
This is known as dynamic currency conversion. It can make the cost look clear at the time, but the exchange rate may be less favourable than letting your card provider convert the transaction.
UK regulation is moving toward clearer pricing here: the Financial Conduct Authority has set out expectations under the Consumer Duty for how clearly firms must disclose international payment costs, including any markup built into the exchange rate. A 'no fixed fee' claim does not necessarily mean a transaction is free of cost if the exchange rate itself includes a markup, so it is worth checking the actual rate applied rather than relying on headline marketing.
What to check
- Usually choose the local currency when offered a choice.
- Check the receipt before confirming the payment.
- Do not assume a sterling price means the cheapest conversion.
- Treat 'no fee' marketing with caution if the exchange rate itself may include a markup.
Credit card protection for purchases abroad
In the UK, Section 75 of the Consumer Credit Act gives extra legal protection when you pay for something priced between £100 and £30,000 on a credit card, and this protection extends to overseas purchases and to online purchases from overseas retailers delivered to the UK.
Under Section 75, the credit card provider can be held jointly liable with the seller if goods are faulty, not delivered, or the company goes out of business - even if you only paid part of the cost, such as a deposit, on the card. This protection does not apply to debit cards, though many debit card providers offer a separate, non-legal chargeback process instead.
What to check
- Consider paying for higher-value purchases abroad on a credit card rather than a debit card.
- Remember Section 75 needs the purchase price to be over £100 and no more than £30,000.
- Ask your debit card provider about chargeback options if Section 75 does not apply.
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
What is a non-sterling transaction fee?
It is a fee some banks charge when your card transaction is made in a currency other than pounds sterling.
Are overseas card fees the same as ATM fees?
Not always. Card purchase fees, cash withdrawal fees and ATM operator fees can be separate, so check each one before travelling.
Should I pay in pounds or local currency abroad?
Paying in the local currency is usually worth checking first because sterling conversion at the terminal can include an unfavourable exchange rate.
Do Apple Pay and Google Pay have different fees abroad?
No. Mobile wallets use the same card and fee structure as the physical card, so the same foreign transaction fee, or fee-free status, applies whichever way you pay.
Does Section 75 protect me when I pay for something abroad?
It can. Section 75 of the Consumer Credit Act applies to overseas and online purchases made on a credit card, for purchases priced between £100 and £30,000. It does not apply to debit cards.
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Cash withdrawals abroadUnderstand ATM limits, bank charges and operator fees.Read guideExchange rates when using your card abroadCompare card network rates, markups and currency conversion choices.Read guideDigital banks for travelCompare digital bank travel features without treating the list as a universal ranking.Read guideHigh street banks for travelCompare high street accounts, packaged benefits and overseas-use fees.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.