Everything you need to know about using your debit card abroad
Planning a trip overseas often brings up questions about managing your money while you’re away, and the best way to spend money abroad. This article will explore the ins and outs of using your debit card internationally.
Can I use my debit card abroad?
Generally, yes! Most major UK banks issue debit cards that work with international payment systems like Visa and Mastercard. These are accepted in most shops and cash machines around the world.
Just keep in mind that banks sometimes have daily limits on how much cash you can withdraw from ATMs. These limits might be a bit lower when you’re using ATMs overseas, so it’s a good idea to check this before you travel. If you’re with Monzo, you can see and adjust your spending limits in the app. And you can see real-time exchange rates and track your spending, so you know exactly where your money’s going.
What are the advantages of using your debit card abroad?
Convenient and widely accepted: most UK debit cards are accepted at merchants and ATMs worldwide, so you can spend easily without the hassle of carrying large amounts of cash around.
Fee-free spending: with Monzo, you can pay anywhere and in any currency, on your debit or credit card, fee-free! We also pass Mastercard’s exchange rate directly onto you, without any hidden costs.
Secure: while it’s a personal preference, you might feel safer using your card abroad rather than carrying lots of cash around. And if your Monzo card is lost or stolen, or you recognise unfamiliar transactions on your account, you can immediately freeze it in the app.
What are the disadvantages of using your debit card abroad?
Transaction fees: some banks will charge you for using your debit card abroad. These fees are usually based on a percentage of the transaction amount plus a fixed fee per withdrawal, which can quickly add up. Check with your bank before you travel so you’re not surprised by unexpected fees.
Exchange rates: the exchange rate your bank applies to foreign transactions might not be the most favourable, meaning you could end up paying more for your purchases. It’s a good idea to check the exchange rate before you leave so you know how much you’re spending.
Paying in local currency or GBP: when paying by card abroad, you might be asked if you want to pay in the local currency or in British Pounds (GBP). It’s generally better to pay in the local currency. If you choose to pay in GBP, the foreign merchant’s bank will perform the currency conversion, and their rates are often less favourable than your own bank or card provider’s.
Alternative ways to pay when you’re abroad
Travel credit cards: some credit cards are specifically designed for international use and offer benefits like fee-free transactions and better exchange rates.
Prepaid travel cards: these cards can be loaded with a specific amount of money in your chosen currency before you travel. This can help you budget effectively and avoid unexpected fees. Just be aware that some prepaid cards might have their own set of fees, such as ATM withdrawal charges.
Cash: some people find it easier to carry cash around while they’re travelling. This can be especially handy in countries where tipping is the norm, or to pay for smaller expenses like taxis. If Monzo’s your main bank account, you can make unlimited fee-free withdrawals in the European Economic Area (EEA), and up to £200 every 30 days everywhere else.
Monzo is the bank made for travel. Pay anywhere and in any currency fee-free on your debit or credit card. Split bills in just a few taps, and upgrade to Monzo Max for worldwide travel insurance. Plans start from £3 a month and are available for UK residents aged 18+.
Find out more about why Monzo should be your first choice for travel spending.