What fees do UK credit cards charge when I spend abroad?

Full answer

When you pay in a foreign currency on a UK credit card, the network (Visa or Mastercard) converts the amount at its wholesale rate, and your card issuer typically adds a non-sterling transaction fee - commonly around 3% on a standard card. So GBP 1,000 of holiday spending could cost roughly GBP 30 in fees on a non-travel card. Withdrawing cash abroad is worse: you usually pay a cash-advance fee (often a percentage with a minimum) and interest starts accruing immediately, even if you clear the balance in full. This affects anyone using a UK card overseas or for online purchases priced in another currency. Specialist travel credit cards and some fee-free providers waive the FX loading entirely, giving you close to the interbank rate. Two extra traps to watch. First, Dynamic Currency Conversion (DCC): an overseas terminal or website may offer to charge you in GBP instead of the local currency. Always decline and pay in the local currency, because DCC uses a poor merchant rate on top of any card fee. Second, even fee-free travel cards still charge standard purchase interest if you do not clear the statement in full, so treat them like any other credit card and pay off the balance. There is no single statutory fee here - each issuer sets its own non-sterling charge, so check your specific card's summary box before you travel rather than assuming 3%. The exact rate, any cash fees and the interest rate are all in your card's terms. For a single trip, the cheapest combination is usually a fee-free travel credit card for spending plus a separate plan for cash, paying in local currency every time and clearing the balance on time to avoid interest. Compare the headline FX fee, cash fees and the APR together rather than in isolation.