There are many ways to save money when travelling abroad, but did you know how you pay for your travels can make a huge difference? Here’s everything you need to know about using holiday spending money – including why you need a specialist travel card for your next trip.
What is a specialist travel card?
A specialist travel credit or debit card is a card that’s designed for payments abroad. Any purchases will be converted into pounds using the banking provider’s exchange rate – and these cards use favourable margins for travellers.
Regular debit and credit cards often charge foreign transaction fees – an extra expense added to purchases. Even if your bank doesn’t charge transaction fees, you may face a huge currency exchange rate for converting your money. Choose a travel card to pay in multiple currencies and save your money – even while you spend it!
Benefits of travel debit and credit cards
There are lots of benefits of travel cards for your holiday spending money. As a frequent traveller, I’m always looking for ways to reduce any unnecessary charges – and instead, I can spend my money on the things that bring me joy!
- No foreign transaction fees – Your regular card may charge foreign transaction fees, typically up to 3% of the total purchase amount. This can really start to add up!
- Spend in multiple currencies – Planning a round-the-world trip? You don’t have to take different currencies in cash on your holiday. Instead, choose a travel card to buy food, drink and fun in multiple countries.
- Cashback – Get cashback when you spend money abroad. For example, the Chase Mastercard debit card gives you 1% cashback on all transactions.
- Travel rewards – Travel rewards credit cards offer special perks for travellers, such as discounts and Airmiles.
How much money can you save by using the right card abroad?
So we’ve talked about why to use a specialist card abroad – but how much can you actually save?
According to Money Saving Expert, if you spend €1000 (five €100 cash withdrawals and 20 transactions of €25 each on your card), you’ll end up spending:
- Specialist credit/debit card: £818
- Cash (via cheapest bureau): £821
- Regular debit card (with a spending charge): £872
- Changing cash at the airport: £949
You can see just how much money you can save by simply choosing the right card. So, if you’re deciding whether you can afford to buy ridiculously-priced (but delicious-looking) Oreo waffle cones when you’re out exploring, remember just how much you’re saving by dodging foreign charges – and go for it!
How to get the best rates for cash abroad
There are a few things to think about before using cash abroad. If you withdraw cash with a travel credit card, you’ll need to pay interest daily until you pay it off. For this reason, it’s better to withdraw money using your travel debit card.
When using a foreign ATM, you may be asked if you want your cash in local currency or pounds. Always choose local currency to avoid any ridiculous exchange rate margins and get the best rates for your cash abroad.
Top credit and debit cards for travel
Chase Mastercard
According to online travel card reviews, Chase offers flexible options for travellers to spend money abroad. Chase’s travel debit card offers:
- No foreign transaction fees on holiday
- 1% cashback
- Fee-free ATM withdrawals abroad
Barclaycard Rewards
The Barclaycard Rewards card is a handy way to spend money abroad without racking up big fees. You can:
- Get 0.25% cashback
- Avoid foreign transaction fees
- Access protection on purchases over £100
Halifax Clarity Credit Card Mastercard
This credit card charges the same interest rate on everything – helping you keep track of your spending as you go. Use the Halifax Clarity Credit Card Mastercard to:
- Avoid foreign transaction fees
- Make ATM withdrawals free of charge
- Get protection for purchases over £100 under Section 75
Holiday spending: FAQs
Which prepaid travel money card is best?
A prepaid travel money card is a debit card that you can top up. It’s different to a travel credit card, as you can add a set amount of money to your card – great for holiday budgeting. These cards use favourable exchange rates and there are a few different options, such as Revolut or Sainsbury’s Bank Travel Money Card.
Can I get a travel money card at the post office?
Yes, you can get your travel money card from your local post office. You load money onto this card before you travel, and you can then use it to spend abroad.
Make sure to check the exchange rate for your card before making your choice. Choosing the best rate will ensure you never pay more than expected for anything you buy abroad.
Is it better to use card or cash abroad?
Using cash abroad can help you avoid expensive travel money exchange rate charges, but you may not want to travel with large amounts of money on you. A specialist travel credit or debit card lets you spend in multiple currencies and you can easily cancel your card if it gets stolen.
Can you put holiday money on a card?
Yes, many supermarkets and banking providers offer travel cards. These are typically prepaid cards, but you can often top them up online. Sainsbury’s Bank Travel Money Card is a popular choice, letting you spend up to 15 currencies at any one time.
Do you use a travel card abroad? Tell us your experiences in the comments – let’s all learn from each other!
A few more articles you may enjoy
- 5 mind tricks to boost your holiday money (and happiness)
- 5 freebies to claim today
- How much holiday spending money do you need?
Now you’re here…
On this blog, you’ll find lots of helpful resources about how to Spend Smarter and Travel Smarter. From the best travel freebies to understanding loyalty cards, we love to help you spend your money in a way that maximises your joy!
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