Travelling out of your country can be an exciting experience, but it can also be distressing without the right information. You get to experience life differently from what you are used to in your home country. One common concern for people leaving the UK for the first time is how to manage international payments. Between unfavourable exchange rates, card restrictions, and high transaction fees, many UK travellers end up spending more than they should simply because they don’t know the best way to pay. Here’s a simple guide to help you understand your options, avoid hidden fees, and pay confidently while travelling abroad.
Also read: Summer vacation ideas for families in the UK
Understanding your payment options
There are various payment options, each with its pros and cons. Your choice of payment options should depend on destination, trip length, and spending habits. Regardless, opt for options that offer exchange rates close to the mid-market rates and low or no foreign transaction fees. Here are your options
- Cash: It is readily accepted in markets and convenience stores in most countries. You can also use it to pay for your train tickets or bus passes. There are no additional charges for using cash, and you won't get stranded if your card fails or a machine isn’t available. On the other hand, you risk loss or theft if you aren’t careful enough. It is better to carry small amounts at a time. Also, obtaining cash, especially if you are converting at an airport, hotel or using international ATMs, can be expensive. It is also challenging to pay in cash for online transactions.
- Regular UK debit card payments: Your regular UK debit card works in many countries, but charges may be steep.
- Travel debit card: An international travel debit card is usually better for avoiding high fees and conversion charges. Card payments are convenient for both physical and online payments. Digital banks like Starling Bank, Monzo, and Chase offer current accounts with debit cards that have no foreign transaction fees and good exchange rates.
- Travel credit cards: Specialist credit cards, such as the Halifax Clarity or Barclaycard Rewards Visa, are fee-free for spending abroad. Section 75 consumer protection on purchases between £100 and £30,000 is still applicable. So, if you pay for a service or a single item within this rate and the quality isn’t excellent, you can file for a refund. You, however, need a good credit score to get one. You also have to pay off the credit quickly to prevent the interest from piling up.
- Prepaid travel cards: You load these cards with a specific amount of currency before you travel. This way, you are locking in the exchange rate at that moment. It is great for budgeting and is not usually linked to your primary bank account. This adds extra security and protects against sudden unfavourable exchange rate changes. It is advisable to consider the associated fees before proceeding. This usually includes an application fee and charges on top-ups and withdrawals. Also, the exchange rates aren't always the absolute best available.
- Digital payment solutions: Digital payment solutions are revolutionising how we manage international payments by removing barriers to affordable cross-border transactions. Transactions are cheaper, exchange rates are better, and payment processing is swifter. With payment solutions like Grey, you get a multicurrency account supporting USD, GBP, EUR, and even USDC, and you can withdraw funds to a local bank account in many countries at competitive exchange rates. You can also get a virtual USD debit card that can be added to Google or Apple Pay, further simplifying payments abroad.
Also read: How Grey differs from a UK bank
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Pre-travel checklist
Before you jet off, a little preparation will help you avoid unexpected costs and stay secure.
- Inform your bank: Most modern digital banks don’t require you to inform them of your travel plans. However, with traditional high-street banks, it's a good idea to let them know so they don't block your card if they discover transactions from another country.
- Check fees: Scrutinise the fees charged by your existing UK bank for foreign transactions and ATM withdrawals. Many charge a non-sterling transaction fee of around 3%, plus a flat fee per withdrawal.
- Carry some cash: While cards are widely accepted, using cash may be better suited for tips, small vendors, street markets, or areas with unreliable internet. You will get better exchange rates if you get money in advance from a bureau de change, rather than at airports or hotels.
- Have a backup: Have at least one alternative payment option. Keep cards in separate, secure places in case one is lost or stolen.
- Know your numbers: Keep a physical or digital note of your bank's emergency contact details so you can quickly report a lost or stolen card and block it.
Also read: How UK residents can send and receive US dollars easily
Travelling with Grey
Paying abroad doesn’t have to be complicated or costly. With a bit of preparation and the right tools, you can enjoy your trip without worrying about hidden fees or bad rates. If you’re travelling soon, consider opening a Grey account to get access to multi-currency features that work globally. It’s one of the simplest ways for UK travellers to manage payments abroad safely, affordably, and conveniently. Get a Grey USD debit card to give you more financial flexibility.
Sign up on Grey today for seamless payments abroad.
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