Using debit or credit cards abroad, advice please!

[mikeg]

And of course in the Netherlands a lot of places don't accept credit cards, especially smaller places, and then it's sometimes only v-pay and maestro. I actually found myself paying cash more in the Netherlands owing to patchy acceptance of foreign cards that work on credit card processing systems, as opposed to single message debit only systems.

 

[Howardh]

I also use a Halifax Clarity card.
That really depends! I've been to really popular restaurants in Germany that have been cash only, yet in the Netherlands I doubt there is anywhere of any significance that wouldn't accept contactless.

That's interesting, in NL it's contactless only (or the local pass) and no cash on the buses! Actually - completely off topic - the Dutch OV Chipkaart is, to me, baffling, where the old Strippenkarte was so easy. Technology going backwards... hopefully contactless will replace the OVC in future.
Back on topic and I will surely be looking to obtain that Halifax card, and take my others as standby. Been really good info on this - thanks folks!
Note, just bought a day-return standard class to London for Monday. Hope to spend an afternoon growing old disgracefully in the soho bars - lockdown allowing. Still whining about the lack of seat choices on Avanti.
Anyoen want a pint late afternoon in de Hems??

 

[mikeg]

The Halifax clarity card has no interest free period, no? Incidentally virgin money credit cards offer fee free spending in Europe but only in euros, Romanian lei and Swedish krona.
Also unlike most Barclaycards, the Barclaycards reward has no fee spending abroad iirc. Again these, like most credit cards allow you to pay in full at the end of the month with no interest
There's also. Santander zero and 118 money that don't charge on spending abroad.

 

[yorkie]

The Halifax clarity card has no interest free period, no?

Mine gets paid off automatically on the 1st of the following month by direct debit, which attracts no interest charges. I've never had any charges applied to this account.

 

[mikeg]

Ah I see you're correct. I must be thinking of a different card, or maybe cash withdrawals (seldom a good idea, though it seems the 118 money one doesn't charge for these if paid off in full)

 

[superjohn]

With all credit cards it is advisable to keep something flowing through every month, the provider may cancel the account if you don’t use it. Presumably they have to pay some kind of standing fee to Visa/MasterCard for the card to exist.

i got my card primarily for going abroad but as I don’t do that every month I always put the odd tank of petrol on it to keep some turnover. It gets paid off in full at the end of the month anyway.

When comparing cards I would highly recommend you prioritise low/no fees over favourable exchange rates. For typical tourist amounts the difference between the best and worst rate will only amount to a few pounds per trip. Fees can make a much bigger difference.

 

[Harpers Tate]

There are two Credit Card issuers I know of (from the top of my head) that do not charge any fees on currency transactions:
- Halifax Clarity ("free" in the EU; there may be a percentage elsewhere)
- Post Office ("free" everywhere).
There are probably a few others.
They use something very close to the wholesale (city/mid) rate to work the transaction. You DO NOT pay interest on purchases if it's fully repaid by the due date and I recommend a Direct Debit to do exactly this.
You DO pay interest on cash withdrawals but that can be largely avoided - see below. With these two cards, there are no fees other than this - unless the ATM itself levies one.

You can apply for cards issued by third parties such as these; you are not "tied" to your own bank. I strongly suggest that you apply for at least two. So doing gives you some contingency in case of (say) loss of a card, etc. And take your existing card as well, even if it has fees, as a further backup. Keep it safe (eg in your hotel) unless needed.

Fee-free cards used in this manner can save 3-5% over anything you might get from an exchange bureau (ignoring unpredictable market fluctuations) because of their use of that whoelsale/middle rate as the basis for the exchange. And, yes - ALWAYS pay in local currency.

How to largely avoid interest on an ATM withdrawal:
Take with you a means to get online access to your bank and to your Card account. Make your withdrawal. Check daily and WAIT until the withdrawal is posted to your account. That day - pay it off in full, manually. You may end up with only one or two days' interest (pennies). In theory, you only need pay an amount to cover the withdrawal itself and that should be applied with priority over other spending, but I did once encounter a legitimate "loophole" to do with a carried forward balance so for confidence, I'd pay the entire balance off.
And of course you minimise your use of cash by using the card instead, even for small amounts, unless the merchant won't let you.

Finally, if they issue your card with a relatively small spending limit, there is nothing to stop you making ad-hoc payments regularly, so as to bring you back well below your limit.

 

[Bletchleyite]

Germany is still very much a cash society, which is surprising given how technologically advanced a country it is. Some traditions die hard.

Ah I see you're correct. I must be thinking of a different card, or maybe cash withdrawals (seldom a good idea, though it seems the 118 money one doesn't charge for these if paid off in full)

There certainly are cards that start charging immediately, being aimed at the market that runs a chargeable balance all the time (so it applies immediately but the APR is a bit lower). The Co-op Bank used to have a couple of them. Also I believe most if not all credit cards start charging interest immediately on any cash withdrawal.

 

[Re 4/4]

The man in seat 61 recommends the curve mastercard: https://www.seat61.com/Europe-train-travel.htm (bottom of page). It seems like you install an app, link your real card, then they send you a curve one which lets you pay abroad with no fees up to a limit, then they charge your original card in pounds. Haven't used it myself but I trust the man.

 

[jtuk]

Only ever used a credit card abroad to pay for a hotel; otherwise I've always used cash.

With the reduction in exchange bureaus here (due to covid) and how easy it is to uses contatless abroad, thinking of using my cards more than cash now. However, as a relative newbie, got a couple of questions (debit is visa, credit mastercard) which will provide the lesser fees, and should I buy in local currency (euros) or pounds? Think the answer to the latter is local currency, but please confirm!

Also I understand there are specific travel debit or credit cards, has anyone experience of these good/bad??

Trawling the web for information is confusing me more!! I'd no idea how travellers cheques worked either...never used them!! Thanks everyone!!

Got Halifax Clarity years ago. No forex fees, even when withdrawing cash, sure they start charging interest immediately but I can use online banking to transfer and pay that off within minutes anyway so who cares. Works a treat.

 

[Mojo]

The best option is the Curve card. This allows you to link your own Mastercard or Visa Credit/Debit card, you can spend up to £500 on transactions / £200 cashpoint withdrawals, but fees may apply on weekends. If you have a rewards earning UK credit card (not Amex) then you will still claim these rewards as on your main bank statement the transactions are charged in GBP.

The next option is a Revolut card. Here you are allowed £1,000 fee-free a month, except for THB and UAH. Similar to the above a small weekend fee applies. This is a prepaid card, top up either by debit / credit card, or bank transfer.

Warn your card provider before you go abroad of where you are going. If they notice any unusual spending pattern, they may stop the card. Especially if they are unable to contact you to verify the transaction.

Most banks don’t want you to do this anymore (if indeed they ever wanted you to).

 

[Bletchleyite]

Most banks don’t want you to do this anymore (if indeed they ever wanted you to).

Some used to. I know the Co-op Bank did. It's made easier these days because of better analytical software (e.g. if you use a card to buy a Heathrow Express ticket, then in an airside pub at Heathrow, then in another country, it's odds on that you've actually gone there[1], whereas if you use the card at your local Tesco then there's a cardholder-present transaction in Russia, that's just a bit suspicious) but also because if they decline a transaction because it's suspicious they can send you a text and you can then confirm it was genuine and retry it without any inconvenience - not so in the days when it'd have to be done via a landline and you'd be caught without until back home.

Other than my most recent one which I noticed myself (due to the instant notifications on Monzo) the bank has generally noticed fraud on my account before I have.

[1] Monzo is even cleverer - it sees if your phone is located near where the card is being used, and if it isn't ups the suspicion a bit. OK, someone could have nicked both, but it's just another layer of security. That one was cardholder-not-present and I suspect it was probably from the easyJet hack.

 

[Harpers Tate]

Personally (and I would not expect anyone or everyone even, to necessarily agree) I would not favour any product where I have to deposit my money upfront before I can use it (as, I believe, is the case with Revolut). I prefer to keep my money until I need it to repay my card after use. Hence, Revolut is not "best" - for me. The Credit Cards to which I refer above have no spending limitations (beyond the credit limit, which can be avoided as I say, by making ad-hoc repayments).

 

[jfollows]

This does actually vary a bit. The "Raphaels Bank" ones you get at airports won't charge you a fee (or didn't, anyway) if you choose a Euro withdrawal billed in Euro, your card handles it.

That's interesting, but it varies as you say - the ones (ATMs, not "Raphaels Bank" I'm sure) in Rhodes in the airport and the ones in Rhodes in the wall of a bank both try to rip you off in the way I've described. But that doesn't especially surprise me.

 

[Howardh]

With lloyds you had to warn them of overseas travel - not any more. Was changed at least 4 years ago.

 

[MotCO]

Personally (and I would not expect anyone or everyone even, to necessarily agree) I would not favour any product where I have to deposit my money upfront before I can use it (as, I believe, is the case with Revolut). I prefer to keep my money until I need it to repay my card after use. Hence, Revolut is not "best" - for me. The Credit Cards to which I refer above have no spending limitations (beyond the credit limit, which can be avoided as I say, by making ad-hoc repayments).

I have used a pre-paid Post Office card. You can set it up before you leave so that you can top up abroad using your phone to transfer funds from your bank account, so you don't have to pre-load too much. (There may bre a minimum value, but I can't remember.) I used the Post Office since it is a 'known brand', but I think it is backed by Bank of Ireland. You can use the card contactless (e.g. to buy Metro tickets in Paris or in shops), and you can easily check all the transactions. I used it to book an Uber, but bizarely, it charged in Euros, converted to pounds, then back to Euros, but I don't thnk there was a net charge.

One thing not really expanded upon in previous posts is the fee v exchange rate. If you get charged no fees, your exchange rate may be poor and vice versa.

 

[Harpers Tate]

One thing not really expanded upon in previous posts is the fee v exchange rate. If you get charged no fees, your exchange rate may be poor and vice versa.

As regards the two (and probably other) Credit Cards to which I refer, the exchange rate used is so close as makes no difference to the city/wholesale/middle rate. You cannot better that. And no fees.

 

[Westcountryman]

I have been using a Nationwide Gold Card for years and i have never had any issues with it. One thing that I think is important is: always take several methods of payment. I always have other cards with me. I remember hearing of some people who went to Australia. At the end of the holiday they tried to pay for their hotel with their card, and for some reason the card payment didn't go through. I don't know how they sorted it, but a second payment method, even at extra cost would have got them out of a hole.

We travel to Austria most years and stay in an apartment. When we first went, we were not aware that they didn't take a card payment, so I had to withdraw ~1000 Euros to pay. Unfortunately, I could only get £300 per day and the bank system was down for the weekend. Luckily I was trying to get the money a week before I needed it and it came back in service in time for me to take the money in 3 chunks. I didn't realise that my wife could take £300 on her card as well, so in the end no issue. We avoid this issue completely now by taking enough Euros with us now.

 

[philjo]

Some banks now automatically register that you may be travelling if you use the card for a transaction at an airport or port. I understand this includes the Eurostar terminal St Pancras, though not sure if that is only the departure lounge or the other shops At St Pancras such as M&S. HSBC still asks for advance notification but the countries/dates can be added using the online banking.

 

[Westcountryman]

Some banks now automatically register that you may be travelling if you use the card for a transaction at an airport or port. I understand this includes the Eurostar terminal St Pancras, though not sure if that is only the departure lounge or the other shops At St Pancras such as M&S. HSBC still asks for advance notification but the countries/dates can be added using the online banking.

Wouldn't work for me as I use one particular card in the UK and a different one abroad.

 

[route101]

This has got me thinking , i only take my debit card abroad and use to take cash out ATMs mostly or large purchases . I dont have a credit card, need to look into this.

 

[jthjth]

It was mentioned up thread a method of extracting cash without paying interest on your credit card. I have a slightly different system. I too have a Santander Zero card. To avoid the interest being paid from the day of withdrawal from the cash dispenser I overpay my account before I depart, so it sits with a credit balance. On arrival overseas I find the nearest bank owned machine (not the dodgy types within the airport arrivals area which I suspect might try to add a fee) and withdraw cash, usually Euros for me. That gives enough buffer for those increasing rare occasions where cards are not taken. Incidentally, The Netherlands is a lot better now at taking standard Visa and Mastercards as well as their own strange local variants. I did find one supermarket that would only accept Visa and not MasterCard, which has never happened to me before. Germany is also a lot better. The only place that refused a card was a small bakers. I’ve been to both Norway and Denmark without using any cash at all.

 

[takno]

I had terrible issues last year with Nationwide rejecting most of my hotel and travel payments as I worked my way around Europe. Absolute disaster area - they were sometimes ringing about 12-18 hours later to tell me to retry the transaction, by which time I was often on the train I was trying to book anyway. The Monzo was an absolute breeze by comparison - just a matter of approving the few transactions they flagged as you went.

Overall experience, particularly in Europe since the transaction fees were stopped for EEA payments, is that even if your card is offering a poor rate, it's still likely to be better than the cash exchange rate you can get in most places, and if you are traveling across countries with lots of different currencies then the savings from not having 5 bags of small notes and coins at the end are huge

 

[CC 72100]

I don't think it is the 'best buy' anymore as Starling has a more generous withdrawal limit, but another vote for Monzo.

I've had it around 18 months, and used it in Belgium, Germany, France and Poland with no issues.

On a couple of occasions having a card was really useful - such as in Bremen where the on-Tram TVMs only took cards, or at the McDonalds where having a card meant I could avoid the language difficulties and use the digital order screens.

It also removes the guesswork of working out when to buy currency as you get the Mastercard exchange rate on the day in question. Yes you could have got more for your money if you'd have bought your currency at the right time but the opposite is also true.

Transactions show in the app with a push notification in under a minute.

Strongly recommend.

 

[PupCuff]

My Monzo card has worked very well for travel, so much so it's much better value to use that than the dedicated currency card I still have somewhere. I use Monzo for my day-to-day spending anyway and I can just do the same abroad as I do in Britain, without worrying about charges etc. If I'm going to somewhere nearby, Belgium, Netherlands, France etc, I generally just get 20 euros or so out of a machine when I get there in case I need money for small things or where they don't take card and anything else goes on the card.

 

[EssexGonzo]

I've been using a Halifax Clarity card and would recommend it. I've never encountered any unexpected fees using it and the exchange rate always seems to be close to perfect. Only thing to remember is to make sure you are paying in the currency of the country you're in rather than pounds (many machines seem to offer the choice) otherwise you'll be paying whatever exchange rate the card machine operator comes up with and they're usually not very favourable!!

Exactly this. PLUS the Barclaycard Platinum has no overseas fees at all for spending or cash withdrawals plus no interest penalty for withdrawing cash. We use it all the time, it always seems to work - no declines for anti-fraud checks. And no interest at all if you pay off before the deadline on the monthly bill.

 

[Harpers Tate]

re Barclaycard Platinum: I believe that was a limited time offer, now expired. I believe they now charge 2.99% to new applicants for ForEx transactions.

 

[mikeg]

A quick look at the money saving expert website shows its the Barclaycard rewards you'd want. Gives you 0.25% cashback on purchases at home and abroad. The others do indeed charge non sterling transaction fees, but this one doesn't.

 

[EssexGonzo]

re Barclaycard Platinum: I believe that was a limited time offer, now expired. I believe they now charge 2.99% to new applicants for ForEx transactions.

OK, I see. I think my card is fee free until August 2023. We found out about it on the MSE website so I'm sure others will have filled the promotional gap.