What are the disadvantages of using a debit card abroad?

Worried about using your debit card while travelling? We give the lowdown on what to look out for.

And breathe… it’s finally time for sun, sea and relaxation. But do you really need to take a huge wad of cash away with you on holiday or can you rely on your debit card for the trip?

If you’re worried about the disadvantages of using your card abroad, this guide breaks down the pros and cons, as well as how you can avoid any pesky fees.

Key takeaways

  • Potential additional fees: If using debit card abroad, potential fees can incur, including foreign transaction fees, overseas ATM fees and currency conversions fees.
  • Some debit cards don’t have additional fees: Some providers provide fee-free spending whilst abroad, such as Chase, Starling, first direct and Kroo.
  • Debit card provides more security than cash: Debit cards tend to provide more security than cash. Your money isn’t protected if your cash is lost or stolen and you should have the same level of protection from your card provider as you do at home
  • Debit card rewards: Possible to still get rewards abroad whilst paying with certain providers

Watch out for unwanted fees when using your debit card abroad

One of the main disadvantages of using your debit card abroad is any extra fees you could be charged by your bank. These include:

  • Foreign transaction fees. Some banks charge a foreign transaction fee of 2-3% if you use your card outside of the UK. You can avoid this by opting for a debit card with no fees.
  • Overseas ATM fees. If you use your debit card to take out cash, your card provider might hit you with an additional charge for withdrawals. Some private ATMs also charge a separate fee for use, so keep an eye out for this.
  • Currency conversion fees. You may be tempted to pay in pounds instead of the local currency, so you know exactly what you’re shelling out. However, if you do this, you’ll be subject to dynamic currency conversion – the exchange rate set by the retailer means you get an unfavourable exchange rate. It’s worth double-checking that your payments are in the local currency on your debit card.

Compare debit cards for fee-free spending abroad

While fees can make it off-putting to use your debit card abroad, many providers don’t charge foreign transaction fees. So, it’s worth considering one of these for your travels rather than avoiding using a debit card completely.

You can switch your current account to a bank that has no fees, or you can open a secondary account to use while abroad. Check out our guide on best UK debit cards with no foreign transaction fees.

UK debit and prepaid cards from banks with no foreign transaction fees when abroad

1 - 13 of 13
Name Product UKFSA-CUR Account fee Overseas cash withdrawals Overseas card transactions Switching deals benefits Incentive Smallprint Link
Finder Award
OFFER
Chase Current Account
Free
0%
0%
Receive 1% cashback on everyday debit card purchases capped at £15.
18+, UK residents. Cashback available for your first 12 months for new customers. Max £15 per month. Cashback exceptions apply.
Go to site
Starling Current Account - Age 18 and over
Free
£0
£0
Starling Bank are removing the interest rate from their personal and joint current accounts on 10 February 2025.
Go to site
EXCLUSIVE
Revolut Standard Account
Free
0% Mon-Fri (max. £1,000 per month) conversion fee plus cash fee of £0 up to £200 per month
0% Mon-Fri (max. £1,000 per month)
Get a £20 welcome bonus when you spend your first £20 (T&Cs apply).

See deal
Monzo Free Account
Free
0% conversion fee plus cash fee of 0% on up to £400 per 30 days (3% thereafter)
0%
Monzo Instant Access Savings Pot earns you 3.60% AER interest (variable), paid monthly into the Pot you create.
Go to site
Wise Multi-currency Account
Free
2 free withdrawals per month (up to £200 total)
1.75% + £0.50 above £200
Free
(currency conversion fee from 0.33%)
CASHBACK
Santander Edge Current Account
£3 per month
0%
0%
Earn £150 cash when you switch to a Santander Edge current account. To receive the £150, simply open an account, set up 2 direct debits and pay in £1,500 within 60 days. T&Cs apply.
Go to site
CASHBACK
Santander Edge Up Current
£5 per month
0%
0%
Earn £150 cash when you switch to a Santander Edge Up current account. To receive the £150, simply open an account, set up 2 direct debits and pay in £1,500 within 60 days. T&Cs apply.
Go to site
Zing Multi-currency Card Account
Zing Multi-currency Card
Free
1 withdrawal free per calendar month.
2+ withdrawal fee £2
No transfer fee, currency conversion fee from 0.20%
Go to site
Currensea
Free
0.5% FX rate. 2% FX rate over £500pm
£0 plus flat fee of 0.5% FX rate
Go to site
Barclays Bank Account
Free
2.99%
2.99%
Eligible for Barclays Blue Rewards.
HyperJar Prepaid Card
Free
N/A
0%
Go to site
Finder Award
OFFER
first direct 1st Account
Free
0%
0%
Switch to a 1st Account and get £175*. Requires credit check. New customers only and T&Cs apply.
*Within 45 days of your account opening you need to switch to first direct using the Current Account Switch Service (including at least 2 Direct Debits or standing orders), deposit £1,000, make 5+ debit card payments and log in to digital banking. New customers only, who haven’t previously held a first direct product.
Go to site
Kroo Current Account
Free
£0.01
0%
loading

Should you take cash or use your card when travelling abroad?

There’s no simple answer – whether you opt for cash or card depends on your personal preferences and how you like to travel.

Pros and cons of using cash

Cash can be a reassuring option. You can budget a fixed amount to take with you (although you do risk running out if you treat yourself a little too often). You’ll also have notes to hand for any places that don’t take card payments or prefer cash.

However, it’s not always the most secure option. You don’t have any protection if your cash is lost or stolen, and you could become a target if you carry a lot on your person.

Pros and cons of using a debit card

A debit card offers convenience and better security. Most shops and restaurants around the world will accept Mastercard or Visa debit cards so you can just tap and go. Plus, you can use your card to take out cash from an ATM if you do need it.

You can also freeze your card if it’s lost or stolen, and you should have the same level of protection from your bank as you do at home.

The main disadvantage of using your debit card abroad is that fees often apply – as we explain in more detail below. Plus, some vendors such as taxis or small local restaurants may prefer or only accept cash, so you could be stuck if you don’t have any.

If you’re still undecided, you might decide to opt for a mix of both – using your card for main spending, but a bit of cash as a backup.

Debit card vs credit card when spending abroad

You might also consider using a credit card rather than a debit card when travelling overseas. Some credit cards offer rewards or cashback on spending, which may be a nice boost to your planned holiday spending. It also lets you spread the cost of your travel over time.

However, credit cards also come with associated fees for spending abroad, and these could be higher than your debit card depending on the provider. Plus, some credit cards such as Amex are only accepted in certain locations.

Bottom line

The biggest disadvantage of using a debit card abroad is the extra fees you could end up paying. These can be easily avoided by opting for a debit card with no fees for withdrawals or transactions. If you’re still unsure whether to use cash or card, it can’t hurt to have a mix of options available to you.

The offers compared on this page are chosen from a range of products we can track; we don't cover every product on the market...yet. Unless we've indicated otherwise, products are shown in no particular order or ranking. The terms "best", "top", "cheap" (and variations), aren't product ratings, although we always explain what's great about a product when we highlight it; this is subject to our terms of use. When making a big financial decision, it's wise to consider getting independent financial advice, and always consider your own financial circumstances when comparing products so you get what's right for you. Most of the data in Finder's comparison tables has the source: Moneyfacts Group PLC. In other cases, Finder has sourced data directly from providers.

Sophie Barber's headshot
Written by

Author

Sophie Barber is a content marketing manager for Finder in the UK after previously working as a content manager at a digital marketing agency. She has over 5 years experience in writing and publishing clear, concise and informative online articles for a variety of websites. See full bio

Sophie's expertise
Sophie has written 79 Finder guides across topics including:
  • Publishing original personal finance research
  • Creating data-led statistics pages to highlight industry trends
  • Cost of living and money saving tips

More guides on Finder

Go to site