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Travelling internationally often means navigating unfamiliar payment systems, fees and security considerations. In this article, we’re exploring how credit cards, debit cards and cash work abroad. Discover how careful planning can limit disruptions and make everyday spending more predictable while overseas.
Travelling internationally often means navigating unfamiliar payment systems, fees and security considerations. In this article, we’re exploring how credit cards, debit cards and cash work abroad. Discover how careful planning can limit disruptions and make everyday spending more predictable while overseas.
Contactless payments are widely accepted in many regions, but availability can vary significantly depending on location and merchant. Knowing how transactions are authorised can help explain why some payments succeed while others are declined or why a PIN may be required in certain situations.
Most cards issued in the UK use chip-and-PIN technology. The embedded chip stores encrypted information and communicates with the payment terminal to authorise transactions. In many countries, especially across Europe, chip-and-PIN is the default. Travellers are usually asked to enter their PIN rather than sign a receipt.
Contactless payments are widely accepted in many regions, particularly in Europe, Australia and parts of Asia. Transport systems, cafés, supermarkets and hotels often support contactless limits similar to those in the UK. However, acceptance can vary by country, merchant type and transaction amount.
Visa and Mastercard's global networks facilitate these international transactions, converting local currency into sterling at the point of sale. These networks convert the local currency into sterling using their exchange rates and pass the transaction to the card issuer for approval. This process usually takes seconds, but additional checks may apply when transactions occur in unfamiliar locations.
Some payment terminals, such as ticket machines or fuel pumps, may require a PIN even for credit cards. Automated kiosks often cannot process signature-based verification. This can occasionally cause issues if a card doesn’t support PIN entry or if the PIN is forgotten.
For example, a traveller attempting to buy train tickets from a self-service machine in France may find that the machine accepts chip-and-PIN cards only. In this situation, a card without PIN capability could be declined even though it works in staffed shops or restaurants.
Debit cards follow a similar process but draw funds directly from the linked bank account. Authorisation checks ensure sufficient balance is available before the transaction is approved. This can sometimes lead to declines if daily limits are reached or if the bank flags the transaction as unusual.
Fees can vary depending on the card issuer, payment network and in some cases the ATM or merchant involved. Knowing what to look for helps travellers avoid unnecessary costs.
Foreign transaction fees are among the most common charges. Many card issuers apply a fee, commonly around 1% to 3%, although this varies by provider and some cards may not charge a foreign transaction fee. Fees are typically added after the transaction is converted into sterling.
Dynamic currency conversion, often referred to as DCC, is another cost to be aware of. This happens when a merchant or ATM offers to charge the transaction in pounds instead of the local currency. Although this may seem convenient, the exchange rate used is typically less favourable than the rate applied by card networks.
DCC often appears as a prompt on card terminals or ATMs asking whether to pay in local currency or pounds. Selecting the local currency usually allows the card network to apply its exchange rate instead of the merchant’s rate.
ATM withdrawals can involve multiple layers of fees. These may include a charge from the ATM operator, a fee from the card issuer and in some cases an unfavourable exchange rate. Debit cards are commonly used for cash access, but costs can still apply.
The table below illustrates how fees can affect spending abroad.
Scenario for £1,000 spent abroad | Total cost |
No foreign transaction fee | £1,000 |
2.99% foreign transaction fee | £1,029.90 |
Dynamic currency conversion applied at an unfavourable rate | £1,050+ |
Over the course of a longer trip, these differences can add up. Travellers who spend several thousand pounds abroad may see noticeably higher costs when fees are applied consistently.
Some cards are structured to reduce or remove foreign transaction fees in certain situations, particularly for international spending. These cards may help simplify budgeting and reduce uncertainty when making purchases in multiple currencies.
The Crypto.com Prepaid Visa Card is accepted globally wherever Visa is supported and is marketed as having zero foreign exchange fees depending on the card tier, with detailed fees varying based on currency and transaction location according to the official fee schedule.
Foreign transaction fee schedule:
Midnight tier: All non-GBP and EUR purchases and ATM withdrawals will be charged as follows.
Non-GBP and EUR purchases and ATM withdrawals | Foreign transactions |
Within the UK and the EU | 0.2% |
Outside the UK and the EU | 2.0% |
Other card tiers: No fee
Fees correct as of January 2026.
It’s also worth noting that cash withdrawals using credit cards are usually treated as cash advances. These often incur immediate interest and additional fees. Debit cards can be used for cash access, though limits and fees still apply.
Credit cards are widely used for international travel due to their acceptance and protection. However, they aren’t without limitations, particularly when fees and holds are involved.
One key feature of credit cards is fraud protection. Disputed transactions are usually investigated without funds leaving the traveller’s bank account immediately. This separation between spending and personal funds can be reassuring during international travel.
Credit cards are also commonly accepted for hotels and car rentals. These merchants often place temporary holds on cards to cover deposits or incidentals. Credit cards can usually accommodate these holds without affecting day-to-day cash flow.
Some credit cards offer additional protections such as purchase protection or extended warranties. These features vary by card and issuer but may be relevant for higher-value purchases made abroad.
Rewards are another consideration. Some credit cards provide rewards on overseas spending, although these may be offset by foreign transaction fees unless the card is designed for international use.
However, there are also disadvantages. Interest charges can apply if balances are not paid off in full. Using a credit card to withdraw cash usually triggers higher fees and interest from the date of withdrawal.
Holds placed by hotels or car hire companies can reduce available credit temporarily. This may affect spending capacity during the trip, especially on cards with lower limits.
Strengths | Weaknesses |
Fraud protection | Foreign transaction fees |
Hotel and car hire acceptance | Interest on carried balances |
Rewards on spending | Cash advance fees |
Purchase protections | Temporary credit holds |
Credit cards may be suitable for accommodation, transport bookings and larger purchases, provided you understand the fees and interest.
Debit cards are often used for everyday spending and cash withdrawals while travelling. They carry different risks compared to credit cards.
One feature of debit cards is direct access to your own money. Spending is deducted immediately from the linked account, which can help travellers keep track of their budget in real time and avoid accumulating balances. Debit cards are also commonly accepted for cash withdrawals at overseas ATMs, although fees may apply.
In many European countries, debit cards are widely accepted for everyday purchases, including supermarkets, cafés and public transport. Chip-and-PIN compatibility aligns well with local payment infrastructure.
Debit cards are also commonly used for ATM withdrawals. This can be useful in destinations where cash is still widely used or where card acceptance is inconsistent.
However, debit cards generally offer weaker protections compared to credit cards. If a card is compromised, money may leave the account immediately, which can create short-term cash flow challenges while the issue is resolved.
Daily spending and withdrawal limits can also be restrictive. These limits vary by issuer and may be lower for international use. Some merchants, such as hotels, may not accept debit cards for deposits.
Advantages | Disadvantages |
Direct access to local cash | Weaker fraud protections |
Widespread European acceptance | Daily withdrawal limits |
Immediate balance visibility | Funds leave account immediately |
No interest charges | ATM and issuer fees |
Many travellers prefer to combine their debit card with a credit card for added flexibility while travelling.
Whether it is cheaper to use cards or cash abroad depends on exchange rates, fees and spending habits. In some cases, card payments can be more cost-effective than exchanging cash.
Card networks typically use wholesale exchange rates, which are often more favourable than those offered by bureaux de change. When foreign transaction fees are low or absent, paying by card may result in better overall value.
Cash exchange services may apply wide margins, especially at airports or tourist areas. These margins can significantly reduce the amount of local currency received for each pound exchanged. Carrying large amounts of cash also introduces risks such as loss or theft.
Consider a trip involving €1,000 in expenses. Paying by card with no foreign transaction fee would use the network exchange rate. Exchanging cash at a bureau de change with a less favourable rate could increase the effective cost.
Cash does have a role in certain situations. Some regions and smaller businesses still prefer cash, particularly in parts of Asia or rural areas. Markets, taxis and small restaurants may not always accept cards.
A balanced approach is often the most practical. Using cards for most spending while keeping a modest amount of local currency can help manage costs and ensure flexibility.
Feature | Credit cards | Debit cards | Cash |
Strengths | Fraud protection, widely accepted for hotels/car rentals (better for temporary holds), rewards, purchase protections. | Direct access to funds (immediate balance visibility), widespread European acceptance for everyday use, useful for ATM withdrawals, no interest charges. | Accepted everywhere (markets, taxis, small restaurants), no foreign transaction fees or card acceptance issues. |
Weaknesses | Foreign transaction fees (1%-3% common), interest on carried balances, high fees and immediate interest for cash withdrawals (cash advances), temporary credit holds reduce available limit. | Weaker fraud protections (funds leave account immediately), daily spending/withdrawal limits can be restrictive, ATM/issuer fees, may not be accepted for hotel deposits. | Risk of loss or theft, less favorable exchange rates (wide margins) compared to card networks, carrying large amounts isn’t advised. |
Fees | Foreign transaction fees, Dynamic Currency Conversion (DCC), cash advance fees. | Foreign transaction fees (if applicable), Dynamic Currency Conversion (DCC), ATM operator fees, card issuer fees. | Unfavourable exchange rates/wide margins at bureaux de change, especially in tourist areas. |
Safety | Best for security; fraud investigation happens without personal funds immediately leaving the bank account. | Funds can leave the account immediately if compromised, creating short-term cash flow issues. | High risk of total loss if stolen or misplaced. |
Preparation can make using cards abroad more predictable. The following tips focus on reducing payment issues, managing fees and maintaining security while travelling.
Many card issuers now rely on real-time fraud detection rather than requiring travellers to notify them before a trip. Even so, it may be helpful to review card settings in advance. Ensuring contact details are up to date allows issuers to send alerts quickly if unusual activity is detected. Prompt responses can help avoid declined transactions while abroad.
Relying on a single card can be risky when travelling internationally. Cards may be lost, blocked or declined without warning. Carrying at least one backup card can provide an alternative payment option if issues arise. Keeping cards in separate locations, such as a wallet and a hotel safe, may reduce the impact of loss or theft.
When paying by card, overseas terminals and ATMs often offer the choice to pay in pounds or the local currency. In many cases this may result in a more favourable rate, although outcomes can vary depending on the provider and transaction. Paying in local currency can help keep costs more predictable.
Hotels and car hire companies commonly place temporary holds for deposits or incidentals. Credit cards are often better suited to these situations because holds reduce available credit rather than withdrawing funds. Debit cards may be more practical for withdrawing local cash or making smaller everyday purchases where holds are less likely.
Mobile wallets can provide an additional layer of security when travelling. Transactions use tokenisation, which means card details aren’t shared directly with merchants. This may reduce exposure if a terminal is compromised. Mobile wallets can also be convenient in busy environments where contactless payments are widely accepted.
Travel smarter with Crypto.com Prepaid Visa Card.
In most cases, credit cards are widely accepted across Europe, particularly those on major networks. Chip-and-PIN compatibility is important, especially for unattended terminals.
Some cards apply foreign transaction fees and other charges. The specific fees depend on the card issuer and card type.
Both can be useful. Credit cards may offer protections and are often preferred for accommodation, while debit cards can be used for cash access.
Debit cards are commonly used abroad, especially in Europe. However, weaker protections and direct access to funds mean some travellers limit their use for added security.
Suitability depends on fees, acceptance and personal preferences. Cards with global acceptance and no foreign transaction fees may suit frequent travellers.
Important Information:
This is informational content sponsored by Crypto.com and should not be considered investment advice. Trading cryptocurrencies carries risks, including price volatility and market risks. Past performance does not guarantee future results. There is no assurance of profitability. Consider your risk tolerance before trading cryptocurrencies.
Third-party information subject to change.
Services, features and other benefits referenced in this article may be subject to eligibility requirements, token holdings, and may change at the discretion of Crypto.com.
The Crypto.com Visa Card is provided by ForisGFS UK Limited, a company incorporated in the United Kingdom with company registration number 12586871 and registered office at Suite 5, 7th Floor, 50 Broadway, London SW1H 0DB, United Kingdom, an electronic money institution authorised by the UK Financial Conduct Authority under the Electronic Money Regulations 2011 (Firm Reference Number 988571). The Crypto.com Visa Card is an electronic money product and is not covered by the Financial Services Compensation Scheme. Any funds received by you are held in a segregated account so that in the unlikely event that ForisGFS UK Limited becomes insolvent your funds will be protected against claims made by creditors.
The Crypto.com Visa Card is an electronic money product and is not covered by the Financial Services Compensation Scheme (FSCS). Any funds received by you are held in a segregated account so that in the unlikely event that ForisGFS UK Limited becomes insolvent your funds will be protected against claims made by creditors.