Can I use my credit card abroad?
Written by
Emily Tye
Reviewed by
Amy LancashireYes, you can use a credit card abroad anywhere the Visa, Mastercard or American Express logo is displayed. Most UK credit cards will work overseas, but some cards charge fees for foreign spending, and a few easily avoidable mistakes can make a trip significantly more expensive. This guide covers the charges to be aware of, how to protect yourself from poor exchange rates, and when a debit card may be the better option.
Will I be charged for using my credit card abroad?
It depends on your card provider. Some credit cards apply a non-sterling transaction fee whenever you spend in a foreign currency, charged as a percentage of the transaction value. Rates vary by provider; Barclaycard, for example, charges 2.99% and Capital One charges 2.75% (correct as of 18/06/2026). On a £1,000 holiday spend, a fee in that range adds up to roughly £28–£30.
Before you travel, check your card's terms so you know whether a fee applies, and if it does, it may be worth comparing cards that offer fee-free overseas spending.
Discover more about credit cards for use abroad.
What is dynamic currency conversion, and how do I avoid it?
Dynamic currency conversion (DCC) is one of the most common ways travellers overpay abroad, and one of the most avoidable.
When you pay by card at a foreign terminal, the machine may ask whether you want to be charged in the local currency or in pounds. It can look like a helpful offer. It is not. When you choose pounds, the exchange rate is set by the merchant rather than your card network, and it will almost always be less favourable.
The rule is straightforward: always pay in the local currency. This applies at card terminals and ATMs alike. If a cash machine asks whether to convert the amount to pounds before it dispenses cash, decline and choose the local currency instead.
Should I use a credit card or debit card abroad?
The practical approach for most people: use a credit card for everyday spending and bookings, and a debit card if you need to withdraw cash at an ATM.
However, the most important factor isn't the card type – it's whether your card charges foreign transaction fees. A fee-free debit card will be cheaper than a credit card that applies a surcharge on every purchase. Beyond that, a credit card can work better for spending because:
If your card details are compromised, your own money is not immediately at risk.
Hotel and car hire deposits sit against your credit limit rather than freezing your actual cash.
Purchases over £100 are covered by Section 75 of the Consumer Credit Act – if an airline or hotel fails, you can claim directly from your card provider.
Why a debit card is better at ATMs:
Credit cards treat cash withdrawals as a cash advance – fees and immediate interest apply from day one, with no interest-free period.
A debit card pulls directly from your account without those charges.
For a broader overview of how the two card types differ, see our guide to the difference between a credit and debit card.
Can I use a credit card at an ATM abroad?
You technically can, but it’s worth treating it as a last resort. Credit card providers class ATM withdrawals as a cash advance, which triggers two costs that do not apply to regular purchases:
A cash advance fee, typically charged as a percentage of the amount withdrawn, subject to a minimum charge
Interest charged from the day of the withdrawal, sometimes at a higher APR (depending on the provider)
If you need local currency, a debit card connected to a current account is almost always the cheaper option. Our guide on withdrawing cash on a credit card covers cash advances in more detail.
Do I need to tell my bank before I travel?
Many UK card providers no longer require you to notify them before travelling. Their fraud detection systems are designed to handle legitimate overseas transactions without flagging them.
That said, it is still worth checking your provider's app or website before you leave, particularly if you are travelling somewhere unusual or for an extended period.
Two things worth confirming before any trip:
Your monthly payment Direct Debit is active and set up correctly
You can log in to your online or mobile banking from abroad
Missing a payment because you were away can result in a late payment charge and a mark on your credit file, so it is worth a quick check before you depart.
Am I protected if something goes wrong abroad?
One of the most significant advantages of paying by credit card, particularly for travel bookings, is Section 75 of the Consumer Credit Act 1974.
Under Section 75 of the Consumer Credit Act 1974, if you pay for goods or services on a UK credit card and the purchase costs over £100 and up to £30,000, your card provider is jointly liable with the retailer if something goes wrong. If an airline collapses, a hotel does not honour your booking, or a company fails to deliver, you can claim directly from your card provider rather than chasing the retailer.
This protection applies to purchases made anywhere in the world. Flights, hotels and package holidays booked on a UK credit card are all covered, provided the item or service itself costs over £100.
Section 75 does not apply to debit cards, prepaid travel cards, or purchases made through certain third-party processors (for example, through a third-party booking platform).
For purchases not covered by Section 75, you may be able to raise a chargeback request with your card provider instead, though this is not a statutory right.
FAQs
There are a range of financial products available that may suit your needs. We encourage you to research your options carefully and consider seeking independent financial advice before making any decisions. This blog is for informational purposes only and does not constitute financial advice.
