How to Avoid Foreign Transaction Fees While Traveling

TL;DR

• Banks often charge 2–3% in foreign transaction fees on every purchase abroad.
• You can avoid these charges with no-fee cards or wallets that offer strong FX benefits.
• Always pay in the local currency, avoid Dynamic Currency Conversion (DCC), and check for weekend surcharges.
• Tools like Curve Pay remove hidden FX fees across all your linked cards, making travel spending smarter and cheaper.

What Are Foreign Transaction Fees and Why Do Banks Charge Them?

A foreign transaction fee is a charge (typically 2.75% in the UK) added by your bank when you make a purchase in a foreign currency. It includes currency conversion, payment processing, and issuer fees.

Most major UK banks still apply these fees:

• Barclaycard: 2.99% foreign purchase fee (Barclaycard)
• HSBC: 2.75% on non-sterling transactions (HSBC UK)
• Santander: 2.95% foreign transaction fee on debit and credit card purchases (Santander UK)

Basically: a small fee on every international purchase. Over a holiday? That adds up fast.

What Hidden Fees Should You Watch Out For When Traveling?

Even if you avoid standard foreign transaction fees, other charges can sneak into your travel spend. These fees are often buried in the fine print, vary by provider, and stack up quickly if you're not careful.

According to MoneySavingExpert, these hidden costs can quietly eat away 3–5% of your total trip spend.

Watch out for these common culprits:

• ATM Withdrawal Charges – Both local ATMs abroad and your UK bank may charge you for taking out cash.
• Cash Advance Fees – Credit card withdrawals often trigger an extra fee and may start accruing interest immediately.
• Dynamic Currency Conversion (DCC) – That tempting “Pay in GBP?” prompt at checkout. Always say no—DCC rates are notoriously inflated.
• Weekend FX Markups – Some banks apply extra charges when currency markets are closed (usually Friday night to Sunday night).

How to Avoid Foreign Transaction Fees Abroad

Avoiding foreign transaction fees isn’t just about picking the right card — it’s also about how and where you use it. Even savvy travellers get caught out by poor FX rates or sneaky conversion prompts. The good news? A few simple habits can save you real money on every trip.

UK banks and even some challenger cards still apply fees unless you’re on a premium plan. That’s why many frequent travellers opt for multi-currency wallets or smart cards that automatically apply the best rate — without you needing to think about it.

Here’s how to keep your travel spending tight:

• Use a no-FX-fee card or wallet – With Curve Pay, you can spend abroad using any of your existing cards, but without the usual foreign transaction fees. It works like a smart layer on top of your cards, giving you fee-free FX rates without needing to switch banks or open new accounts.
• Always pay in the local currency – Say no to DCC (Dynamic Currency Conversion). Paying in GBP abroad means you’ll almost always get a worse rate.
• Avoid airport kiosks and tourist ATMs – These usually offer poor exchange rates and high withdrawal fees. Stick to well-known banks or local machines in town.
• Use apps to track spend in real time – Spot hidden fees and budget better with instant transaction alerts and smart categorisation.
• Plan cash withdrawals strategically – If you need cash, take out a larger amount in one go to avoid repeated ATM fees. Make sure you know your provider’s free withdrawal limits.

What About Weekend Exchange Rate Markups?

Some providers (especially banks and fintech apps) apply extra markups on weekends because FX markets are closed.

The Times notes these can range from 0.5% to 1.5%.

How Curve Pay handles it:

• No weekend markups when using Curve Pay directly for paid subscription tier
• Other wallets (e.g. Google Pay, Apple Pay) may still trigger fallback fees
• Premium users enjoy generous fee-free FX limits, making it easier to spend abroad without worrying about hitting charges quickly.
• Digital Wallets: The Modern Way to Pay Abroad

Digital wallets have become the go-to for travellers who want speed, control, and fewer fees — and Curve Pay leads the pack. Instead of juggling multiple cards or worrying about exchange rates, you can manage everything in one app with features designed for travel.

Here’s what a good digital wallet can do:

• Link multiple debit/credit cards
• Consolidate FX payments into one app
• Automatically choose the best card for the situation
• Instant spending alerts + card freeze options

Money.co.uk shows that wallets often beat prepaid cards on flexibility and FX rates. Digital wallets for travel often include multi-currency support that makes managing global spend far easier.

Travel Wallets & Cards Compared: Which Saves You the Most?

Not all travel cards are created equal — especially when it comes to fees, flexibility, and convenience. Whether you're a frequent flyer or planning a quick getaway, the differences between providers can cost you more than you think.

Not sure which option is best for spending abroad? Here’s how debit, credit, and Curve Pay compare for spending abroad.

Sources: Revolut Fees, Wise Pricing, Monzo Abroad, N26 ATM Fees

Download Curve Pay

Download Curve Pay

Final Tips for Smarter Spending Abroad

A few smart habits can make all the difference when it comes to saving money abroad. Whether you’re travelling for business or pleasure, these simple tips will help you avoid common pitfalls and get more value from every transaction.

• Use a digital wallet with no FX fees (Curve Pay, Wise, etc.)
• Always choose the local currency at checkout
• Avoid tourist ATMs and currency exchange kiosks
• Use Smart Rules or alerts to control your spending
• Look for multi-currency support to avoid conversion fees
• Make the most of cashback or travel rewards

If you’re looking to make the most out of travel cards, start by understanding how rewards and fee structures differ in 2025.”

FAQ: Smarter International Spending for UK Travellers

How do I avoid bank fees when spending abroad?
Use a no-FX-fee wallet like Curve Pay. Always pay in the local currency, avoid DCC, and check if your provider adds weekend markups.

Is it better to use a debit or credit card abroad?
Credit cards often offer more fraud protection and rewards, but debit cards may have lower ATM fees. Compare both before you travel.

What is dynamic currency conversion and why should I decline it?
DCC is when a shop or ATM offers to charge you in GBP instead of the local currency. It usually comes with bad rates and hidden fees. Always choose the local currency.

Are prepaid travel cards a good option?
They can help with budgeting and often offer good FX rates, but may come with reloading fees or limits. Compare options before choosing one.

Do digital wallets help reduce travel spending fees?
Yes. Digital wallets like Curve Pay or Wise often offer lower FX fees, smarter card management, and better real-time control than traditional banks.

Spending abroad doesn’t have to be expensive. With the right setup, you can dodge the hidden costs and travel like a local—all while earning rewards and using your favourite cards.

Read more about Curve Pay plans.