The cost of using your cards on holiday | Currency Convertor

Credit cards
Using credit cards abroad can be expensive, with providers adding on a surcharge, typically 2.75% as well as a fee of around £1.50 if you use ATMs. Another drawback of taking out cash on your credit card is that you start paying interest the moment you withdraw it.

Currency
If you are using a debit card to buy currency at the airport in the UK, you could save money by withdrawing the sterling and changing the cash instead of using your card as some foreign exchange counters charge for transacting on plastic. But to get the best deals, don't leave it until the airport, which usually offers the worst exchange rates. You could save more than £5 for every £100 you take out by planning ahead.

Travellers' cheques
Consider travellers' cheques, they cannot be beaten for security but if you are heading off the beaten track, make sure you will be able to change them. Cheques can usually be stopped or replaced within 24 hours if they are lost or stolen, whereas credit cards can take much longer. But you must keep a separate note of serial numbers to take advantage of this security feature. When you buy cheques, read the accompanying security advice and make a note of any numbers you need to call in the event that you lose cheques or have them stolen.


Foreign currency exchange rate fee:
Debit and credit cards should charge you what the going exchange rate is, but most will simply add 2.75% to the bill.

Cash withdrawal fee:
Again, most banks will charge a 2.75% fee or a minimum charge, which is typically set at £2.75 for withdrawing money out of a cash machine on your debit and credit card. Some will charge a flat fee regardless of the size of the withdrawal.

Till charge:
It's not just cash machines that hit consumers' pockets. Some banks have started charging a fee when a credit card is used at a retailer's till.

Dynamic currency conversion:
Some overseas retailers, restaurateurs, hoteliers and car hire firms will charge you in sterling, rather than the local currency. By doing this they can make a nice profit on the exchange rate, so you should insist on paying in the local currency.

Here are a few of the best cards around for taking on holiday with you, but remember most banks do use credit cards to generate extra cash from holidaymakers.

Abbey Zero
Foreign currency exchange rate fee: Nothing
Cash withdrawal fee: nothing
Typical APR: 18.9%

Nationwide Gold Card
Foreign currency exchange rate fee: Nothing
Cash withdrawal fee: 2.5%, minimum £3
Typical APR: 15.9%

Post Office Platinum
Foreign currency exchange rate fee: Nothing
Cash withdrawal fee: 2.5%, minimum £3
Typical APR:15.9%

Saga Visa
Foreign currency exchange rate fee: Nothing within EU, 1% outside
Cash withdrawal fee: 2%, minimum £2
Typical APR: 16.9%

The Universal Currency Converter® contains the top 85 currencies sorted by country name - listing the ten most popular currencies first. Special units and precious metals are listed both alphabetically and separately, at the end of this list.