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Using a credit card abroad
A credit card can be a great travel buddy, but there are a few key things to know.
Credit card fees in action
For the examples below we’ve used a fictional exchange rate, and assume that the currency is converted from Euros to Sterling. Actual fees and exchange rates may vary, which could affect the cost to you.
A credit card purchase
|
Transaction amount |
€100 |
|---|---|
|
Payment scheme exchange rate |
1.113654 |
|
Conversion to Sterling |
£89.79 |
|
Foreign exchange fee |
£2.65 (2.95%) |
|
Cash withdrawal fee |
N/A |
|
Final statement amount |
£92.44 |
A credit card cash withdrawal
|
Transaction amount |
€100 |
|---|---|
|
Payment scheme exchange rate |
1.113654 |
|
Conversion to sterling |
£89.79 |
|
Foreign exchange fee |
£2.65 (2.95%) |
|
Cash withdrawal fee |
£4.49 (5%) |
|
Final statement amount |
£96.93 |
Choosing which currency to pay in
When using your credit card outside the UK, you might be given the option to transact in Sterling or local currency, so it’s important that you understand the costs in advance.
If you choose to pay in local currency
- The Visa, Mastercard or American Express exchange rate on that day will apply. This is usually better than the rate you’d get at a bureau de change or ATM.
- You might pay a currency conversion fee and, if you withdraw money at an ATM, a cash transaction fee.
If you choose to pay in Sterling
- The retailer or ATM operator will convert the currency for you. The exchange rate might not be as competitive as you could expect from a credit card payment scheme provider.
- In addition to credit card fees, the retailer or ATM provider might charge a service fee.
Things to do before you travel
1. Check if you can use a credit card
There are restrictions on using your credit card in some countries. You also need to make sure you activate your Halifax credit card. Our guide on how to activate your card is here.
2. Let your card provider know
At Halifax, you don’t need to tell us you’re going abroad (this may vary depending on your credit card provider). Be aware that our fraud and security systems may still stop payments you are making while abroad if they suspect they may be fraudulent.
3. Pack a few payment options
Such as a debit card, credit card and local currency. It’s important to keep these secure and, just in case things get lost, only carry what you really need each day. Make sure you know the PIN for your cards. You can view the PIN for your Halifax cards in our app.
4. Check your card expiry date
Make sure your credit card doesn’t run out during your trip. If your Halifax credit card is due to expire within 90 days, you can request a replacement card. Your new card will arrive within 5 working days.
5. Consider setting up a Direct Debit
This could cover your credit card payments automatically while you’re away. At Halifax, we offer a range of payment methods to suit most needs.
6. Check your contact details are correct
Your credit card provider could call or text you if they are concerned about any activity on your account. Your cards could be blocked if you are unable to be reached, which would be a bit of a party killer. At Halifax, you can check and update your details in Online Banking or using the Mobile Banking app.
7. Note down useful phone numbers
You might need these in an emergency. Perhaps save them to your mobile.
8. Have you tried the Mobile Banking app?
You can access our services on the go with the Mobile Banking app. Just use the same username and password you use for Online Banking, if you've already registered.
Frequently asked questions on using cards abroad
-
You can purchase or withdraw local currency with a credit card, but just be aware that fees and interest may apply, including a cash transaction fee.
-
When deciding which type of card to use when abroad, it really depends on the transaction type. For example, withdrawing cash is usually cheaper when using a debit card.
If you use a credit card, remember you might be charged interest, so it’s a good idea to repay your balance as soon as possible to minimise your borrowing costs.
To check the interest rates, fees and charges which apply to your credit card, refer to your account terms and conditions booklet or your latest monthly statement.
A summary on using credit cards abroad
When you use your credit card for overseas transactions, interest and fees might apply.
- So you understand any costs, check your account terms and conditions or latest statement.
- At Halifax, you don’t need to tell us you’re going abroad, but some providers might ask for notice.
- It’s worth having a few payment options with you on holiday, just in case of emergencies.
- Even outside the UK, credit card purchases are covered by Section 75 of the Consumer Credit Act.