Travel Money Guide UK 2026 — Best Ways to Spend Abroad

Getting the best rates when spending abroad can save you hundreds. Here’s how to avoid fees and get the most for your money.

The Basics

How You Lose Money Abroad

Fee Type	Typical Cost	How to Avoid
Foreign transaction fee	2.75-3%	Use fee-free card
Poor exchange rate	3-5%	Use mid-market rate card
ATM fees	£1-3 per withdrawal	Use fee-free card
Dynamic currency conversion	4-6%	Always pay in local currency
Airport bureau	8-12%	Don’t use them

Example: £1,000 Holiday Spending

Method	Effective Rate Loss	You Actually Get
Worst (high street bank card)	6-8%	£920-940 worth
Airport bureau cash	8-12%	£880-920 worth
Good travel card	0-1%	£990-1,000 worth

Best vs worst = £80-120 difference on £1,000.

Best Ways to Spend Abroad

Ranking by Cost

Method	Fees	Exchange Rate	Overall
Specialist travel card	None	Mid-market	Best
Fee-free credit card	None	Near mid-market	Excellent
Digital bank card	None (with limits)	Near mid-market	Excellent
Pre-paid travel card	Varies	Good	Good
Order cash online	Pick-up fee	Reasonable	Acceptable
High street bank card	2.75-3%	Poor	Bad
Airport/hotel bureau	Hidden in rate	Very poor	Worst

Best Travel Cards

Debit Cards

Card	Foreign Fees	ATM Fees	Notes
Starling	0%	0%	Mastercard rate
Monzo	0%	£200/month free, then 3%	Excellent rates
Chase	0%	0%	1% cashback too
Revolut	0% (weekdays)	£200/month free	Weekend markup

Credit Cards

Card	Foreign Fees	Best For
Halifax Clarity	0%	Fee-free, cash advances (interest from day 1)
Barclaycard Rewards	0%	0.25% cashback
Amex (Premium)	0-3% varies	Rewards (acceptance varies)

Prepaid Cards

Card	Foreign Fees	Load Fee	Notes
Revolut	0% weekdays	0%	Comprehensive app
Wise	0.35-1%	Low	Multi-currency
Caxton	0%	0%	Travel specialist

Card Strategy

Recommended Setup

Card	Use For
Primary: Starling/Monzo/Chase	Day-to-day spending, ATM
Backup: Fee-free credit card	Large purchases, emergencies
Small cash amount	Where cards not accepted

Why This Works

Benefit	Detail
No fees	Fee-free cards throughout
Section 75 protection	Credit card for £100+ purchases
ATM access	Withdraw cash if needed
Redundancy	If one card lost/blocked

ATMs Abroad

Using ATMs Wisely

Do	Don’t
Use bank ATMs	Use standalone machines
Choose local currency	Accept conversion offer
Withdraw larger amounts less often	Make many small withdrawals
Check card limits	Forget to notify bank

ATM Fees Breakdown

Who Charges	Typical Amount
Your UK bank	£1-3 + 2.75% (bad cards)
Foreign ATM operator	Varies (often €2-5)
Dynamic currency conversion	4-6% hidden in rate

Fee-free UK cards still face local ATM operator fees in some countries.

Cash: When and How

When You Need Cash

Situation	Cash Needed?
Market stalls	Often
Small cafes	Sometimes
Tips	Usually
Public transport	Sometimes
Card backup	Always have some

Getting the Best Rates

Method	Rate Quality	Convenience
ATM (fee-free card)	Excellent	High
Order online, collect airport	Good	Medium
Post Office	Fair	Medium
Airport bureau (on day)	Poor	High
Hotel exchange	Very poor	High

How Much Cash to Carry

Trip Type	Cash Recommendation
European city break	€100-200 + cards
Developing country	More cash (cards less accepted)
All-inclusive resort	Minimal (tips only)
Adventure travel	More cash backup

Dynamic Currency Conversion

What It Is

Scenario	What Happens
At checkout	“Pay in £ or local currency?”
You choose £	Shop converts at bad rate
You choose local	Your card converts at good rate

The Hidden Cost

Your Spend (local)	Converted at Shop	Converted by Good Card
€100	£92	£86
€500	£460	£430
€1,000	£920	£860

Always say NO to conversion — “I’ll pay in [local currency].”

Where You’ll See It

Location	How It’s Presented
Card machines	“Pay in GBP?”
ATMs	“Dispense with/without conversion”
Hotels	Rate shown “for your convenience”
Rental cars	Added at checkout

Country-Specific Tips

Europe (Eurozone)

Tip	Detail
Cards widely accepted	Contactless common
Carry some cash	Markets, small businesses
Watch for DCC	Common scam

USA

Tip	Detail
Chip + signature common	Not always PIN
Tips expected	15-20%
Cash for tips	Restaurants, hotels

Asia

Tip	Detail
Cash more used	Especially markets
ATMs plentiful	But check charges
Counterfeit risk	Get cash from banks

Developing Countries

Tip	Detail
Cash often essential	Cards not accepted
US dollars/euros useful	Sometimes preferred
ATM availability	May be limited

Before You Travel

Checklist

Task	Why
☐ Get fee-free card	If you don’t have one
☐ Notify bank of travel	Prevent card blocks
☐ Check daily limits	ATM and spending
☐ Note emergency numbers	If card lost
☐ Save offline backup	Card details separately
☐ Download apps	Wise/Revolut offline features

Card Limits

Limit Type	Check
Daily ATM withdrawal	Usually £300-500
Daily spending	May apply
Contactless limit	Varies by country
Monthly fee-free ATM	Some cards have limits

If Things Go Wrong

Lost or Stolen Cards

Step	Action
1	Block card immediately (app)
2	Contact bank emergency line
3	Report to police (for insurance)
4	Use backup card
5	Emergency cash (Western Union, etc.)

Emergency Numbers

Bank	International Number
Keep saved	Not starting with 0
Save in phone	Under “Travel Emergency”
Write down separately	In case phone lost

Key Takeaways

1. Get a fee-free card — saves 5-10% vs bank cards
2. Never accept DCC — always pay in local currency
3. Use ATMs wisely — bank ATMs, local currency
4. Carry backup card — in case of loss
5. Minimal cash — from good sources
6. Avoid airport bureaux — worst rates

For related content, see our best money transfer services, best current accounts, and best credit cards.