Travel Money UK 2026 — Best Way to Get Currency, Exchange Rates and Holiday Budgets

Travel Money Guide UK 2026 — Best Ways to Spend Abroad

Complete guide to spending money abroad. Best travel cards, debit cards, credit cards, and how to get the best exchange rates.

· · Last reviewed: · 4 min read

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 TypeTypical CostHow to Avoid
Foreign transaction fee2.75-3%Use fee-free card
Poor exchange rate3-5%Use mid-market rate card
ATM fees£1-3 per withdrawalUse fee-free card
Dynamic currency conversion4-6%Always pay in local currency
Airport bureau8-12%Don’t use them

Example: £1,000 Holiday Spending

MethodEffective Rate LossYou Actually Get
Worst (high street bank card)6-8%£920-940 worth
Airport bureau cash8-12%£880-920 worth
Good travel card0-1%£990-1,000 worth

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

Best Ways to Spend Abroad

Ranking by Cost

MethodFeesExchange RateOverall
Specialist travel cardNoneMid-marketBest
Fee-free credit cardNoneNear mid-marketExcellent
Digital bank cardNone (with limits)Near mid-marketExcellent
Pre-paid travel cardVariesGoodGood
Order cash onlinePick-up feeReasonableAcceptable
High street bank card2.75-3%PoorBad
Airport/hotel bureauHidden in rateVery poorWorst

Best Travel Cards

Debit Cards

CardForeign FeesATM FeesNotes
Starling0%0%Mastercard rate
Monzo0%£200/month free, then 3%Excellent rates
Chase0%0%1% cashback too
Revolut0% (weekdays)£200/month freeWeekend markup

Credit Cards

CardForeign FeesBest For
Halifax Clarity0%Fee-free, cash advances (interest from day 1)
Barclaycard Rewards0%0.25% cashback
Amex (Premium)0-3% variesRewards (acceptance varies)

Prepaid Cards

CardForeign FeesLoad FeeNotes
Revolut0% weekdays0%Comprehensive app
Wise0.35-1%LowMulti-currency
Caxton0%0%Travel specialist

Card Strategy

CardUse For
Primary: Starling/Monzo/ChaseDay-to-day spending, ATM
Backup: Fee-free credit cardLarge purchases, emergencies
Small cash amountWhere cards not accepted

Why This Works

BenefitDetail
No feesFee-free cards throughout
Section 75 protectionCredit card for £100+ purchases
ATM accessWithdraw cash if needed
RedundancyIf one card lost/blocked

ATMs Abroad

Using ATMs Wisely

DoDon’t
Use bank ATMsUse standalone machines
Choose local currencyAccept conversion offer
Withdraw larger amounts less oftenMake many small withdrawals
Check card limitsForget to notify bank

ATM Fees Breakdown

Who ChargesTypical Amount
Your UK bank£1-3 + 2.75% (bad cards)
Foreign ATM operatorVaries (often €2-5)
Dynamic currency conversion4-6% hidden in rate

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

Cash: When and How

When You Need Cash

SituationCash Needed?
Market stallsOften
Small cafesSometimes
TipsUsually
Public transportSometimes
Card backupAlways have some

Getting the Best Rates

MethodRate QualityConvenience
ATM (fee-free card)ExcellentHigh
Order online, collect airportGoodMedium
Post OfficeFairMedium
Airport bureau (on day)PoorHigh
Hotel exchangeVery poorHigh

How Much Cash to Carry

Trip TypeCash Recommendation
European city break€100-200 + cards
Developing countryMore cash (cards less accepted)
All-inclusive resortMinimal (tips only)
Adventure travelMore cash backup

Dynamic Currency Conversion

What It Is

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

The Hidden Cost

Your Spend (local)Converted at ShopConverted 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

LocationHow It’s Presented
Card machines“Pay in GBP?”
ATMs“Dispense with/without conversion”
HotelsRate shown “for your convenience”
Rental carsAdded at checkout

Country-Specific Tips

Europe (Eurozone)

TipDetail
Cards widely acceptedContactless common
Carry some cashMarkets, small businesses
Watch for DCCCommon scam

USA

TipDetail
Chip + signature commonNot always PIN
Tips expected15-20%
Cash for tipsRestaurants, hotels

Asia

TipDetail
Cash more usedEspecially markets
ATMs plentifulBut check charges
Counterfeit riskGet cash from banks

Developing Countries

TipDetail
Cash often essentialCards not accepted
US dollars/euros usefulSometimes preferred
ATM availabilityMay be limited

Before You Travel

Checklist

TaskWhy
☐ Get fee-free cardIf you don’t have one
☐ Notify bank of travelPrevent card blocks
☐ Check daily limitsATM and spending
☐ Note emergency numbersIf card lost
☐ Save offline backupCard details separately
☐ Download appsWise/Revolut offline features

Card Limits

Limit TypeCheck
Daily ATM withdrawalUsually £300-500
Daily spendingMay apply
Contactless limitVaries by country
Monthly fee-free ATMSome cards have limits

If Things Go Wrong

Lost or Stolen Cards

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

Emergency Numbers

BankInternational Number
Keep savedNot starting with 0
Save in phoneUnder “Travel Emergency”
Write down separatelyIn 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 credit cards guides.

Sources

  1. MoneyHelper — Everyday money