Credit cards can be a handy travel companion. They're widely accepted and easy to use, and as long as you stay in control of your spending, they can help you spread the cost of your getaway.

But using a credit card to pay while you're abroad isn't always the same as paying at home. Factors like different currencies and extra charges can catch people out.

This guide looks at how to use a credit card abroad, as well as the advantages and disadvantages. Knowing how and when to use your card means you can focus on the holiday itself rather than the bill at the end.

In this guide, we'll cover:

• Whether you can use your UK credit card abroad

• Common overseas fees and why they apply

• Whether to pay in local currency or pounds

• Cash withdrawals, debit vs credit, and purchase protection

• Safer ways to pay, take cash out, and manage your spending on the go

Can you use a credit card abroad?

In most cases, yes, you can use a UK credit card abroad in the same way you use it at home.

If your card carries the Visa or Mastercard logo, as Capital One cards (opens in a new tab) do, it's likely to be accepted in millions of places around the world. Credit cards are recognised in most destinations and for services that tourists commonly use, including:

• Hotels and resorts

• Restaurants and cafes

• Shops and supermarkets

• Tourist attractions

• Car hire desks

• Online travel bookings

Are credit cards accepted everywhere?

While lots of destinations accept payment by credit card, it's still sensible to have a backup plan. In some places, especially smaller towns or rural areas, cash is often preferred. You might also find that you need to pay cash if you're visiting a local market or family-run shop. Even in big cities, you might find the occasional venue that's still 'cash only'.

It's worth noting that card machines aren't always reliable. Try to take out a small amount of local cash using your debit card at a trusted cash machine (like near the airport or in a main town) for basics like transport and snacks. Avoid using a credit card to withdraw cash, as this usually triggers immediate interest charges and cash advance fees.

Do I need to tell my card provider before travelling?

You don't always have to tell your credit card issuer before you use it while you're abroad. In the past, it was essential that you rang your bank days before your trip to let them know you were going away, or risk your card being blocked on the first day of your holiday.

Now, thanks to more sophisticated fraud detection technologies and customer support systems, a lot of banks and credit card providers have moved away from that. At Capital One, all we ask is that you make sure we have your up-to-date contact details.

If we do spot something that looks unusual, we'll try to reach you via text or through the app, using the contact details we have for you. This means that if your old mobile number is still on our system, we won't be able to get confirmation that it's you using your credit card abroad. This could lead to a temporary block for your protection.

A few quick checks can help avoid this:

• Is your mobile number up to date?

• Is your email address correct?

• Can you log in to the Capital One app (opens in a new tab) without problems?

So, it's likely that you can use your credit card abroad. But understanding the fees and choices that come with it can make a big difference to the overall cost.

Do you get charged for using a credit card abroad?

Yes, but it may come with additional costs depending on your provider and how you use your card.

Here are some of the most common charges to be aware of:

1. Non-sterling transaction fee

A non-sterling transaction fee, also known as a foreign transaction fee, is a charge added when you buy something in a currency other than GBP (British pounds). This fee is applied by your card issuer to cover the cost of converting the transaction from the local currency into sterling.

It's usually worked out as a percentage of what you spend – typically up to 3% on most UK credit cards. The exact rate depends on your card and provider. If you have a Capital One card, the non-sterling transaction fee can vary, depending on the type of card you have. However, you can check your credit card agreement to find out how much this charge will be.

How a non-sterling transaction fee works

To give you an idea of how this type of fee looks, here’s an example:

• If you pay €100 for something at the current exchange rate, the card network converts this into pounds, then your card provider may add the fee on top

• €100 converts to roughly £85 (exchange rates move all the time, so this is just an example)

• If you have a non-sterling transaction fee of 2.75%, this percentage of £85 works out at about £2.34

• This means that your statement might show around £87.34 in total

• Think of this fee as the admin charge for turning your purchase from euros into pounds and routing the payment through the global card network

You can find exchange rates at any time on the Mastercard (opens in a new tab) or Visa (opens in a new tab) websites. If you're using your Capital One credit card while abroad, check our currency converter for foreign transactions (opens in a new tab) to get an idea of how much the full payment will be.

It's important to note that this fee can also apply even if you're still in the UK, if you buy something online from a foreign company and the payment is taken in a non-GBP currency.

2. Cash advance fee

Withdrawing cash on a credit card is usually treated as a 'cash advance' (often referred to as an ATM withdrawal fee). Both in the UK and abroad, this is generally the most expensive way to get money. Most providers charge a cash fee, which is often 3%, with a minimum charge of around £3.

On top of that fee, interest starts building immediately (opens in a new tab). Unlike a normal purchase, where you usually get a grace period to pay off your balance before interest kicks in, cash withdrawals accrue interest as soon as the money leaves the machine.

You'll need to take into account any other restrictions when withdrawing cash, such as daily cash withdrawal limits. And in some cases, you might be charged an additional fee for withdrawing cash at certain cash machines.

When you add the foreign transaction fee on top, a simple €100 withdrawal could end up costing you £5 or £6 in fees alone, plus the interest.

Buying foreign currency with a credit card

Using a credit card to buy travel cash (online or at a bureau de change) is often treated like a cash advance too. That means cash advance fees and interest from day one.

If you need travel money, using a debit card for buying currency is usually cheaper than funding it with a credit card.

Should you need cash for taxis or tips while you're away, consider:

• Withdrawing it using a debit card (and checking your bank’s fees first)

• Ordering a small amount of currency before you travel

• Withdrawing larger amounts less often, rather than making multiple smaller visits to a cash machine

3. Interest on foreign purchases

The good news is that for standard shopping or dining abroad, interest rules stay the same as they are at home. If you pay your statement in full by the due date, you won't pay any interest on those foreign purchases. The only 'extra' you pay is the one-off foreign transaction fee.

If you don't pay the balance in full, then interest is charged based on your card's normal interest rate, and it applies in the same way it would for spending in the UK.

Check your card's terms before you fly

Fee percentages vary by card. Some specialist travel credit cards waive foreign transaction fees entirely. The key is knowing what your card does, so you can budget properly and avoid any surprises.

Before your trip, check your card's terms so you know your:

• Non-sterling transaction fee

• Cash withdrawal fee

• Interest rates (especially for cash advances)

Once you know those, you can decide the best way to spend abroad.

Should I pay in local currency or pounds?

Always pay in local currency when using your credit card abroad. The card terminal will give you a choice to do so in GBP or the local currency. And while seeing the price in pounds makes it easier to know exactly what you're spending, if you choose to pay in pounds, you'll pay the dynamic currency conversion fee (DCC). This is almost always a bad deal for your wallet.

How exchange rates work when you pay in local currency

When you choose the local currency, the conversion is handled by Visa or Mastercard. They use wholesale exchange rates, which are very competitive and close to the actual market rate. You get a fair deal, and your bank then adds the non-sterling transaction fee.

You won't normally see the final GBP amount until the payment is processed and it'll show on your statement in pounds.

What is DCC?

Dynamic currency conversion is when a merchant or cash machine offers to charge you in pounds on the spot instead of the local currency. In this case, the merchant or cash machine provider sets the exchange rate, and it can include a significant markup. That means you might pay more overall compared with paying in local currency and letting the card network handle the conversion.

Even if your card charges a foreign transaction fee, the GBP option can still work out pricier because the exchange rate is worse. So, when you see the question "Pay in GBP?" or "Pay in EUR/USD/THB/?" etc., it's almost always best to choose the local currency. It keeps the exchange rate conversion in the card network's hands and avoids the hidden markup that can come with DCC.

This applies at cash machines too. So, if the machine asks whether you want to be charged in GBP, choose local currency and decline conversion.

Before you travel: Preparing your credit card

As well as understanding how the fees work and which currency to pay in, it's worth checking your credit card before you leave the UK. Here are the five steps to take before you head to the airport:

1. Check the expiry date: Make sure your card is in date. If not, order a replacement at least two weeks before you travel

2. Verify your credit limit: If you're planning a big trip, check your limit first. This will help you keep track of your available balance beforehand. Making a payment before you fly will give you the flexibility you need for hotel deposits or car hire

3. Download the app: Ensure you have access to your account while you're on the go. Install the app (opens in a new tab) and log in to make sure you know how to track your spending in real time. The app also allows you to freeze your card instantly if it goes missing

4. Set up a Direct Debit: Avoid missing a payment while you're enjoying your getaway. Setting up a Direct Debit can help ensure your minimum payment, full balance, or a fixed amount is taken automatically

5. Pack a backup: Technology can glitch sometimes. Carry a second card and some cash. Keep your backup card in a different place, like the hotel safe, so if your wallet is lost or stolen, you aren't left stranded

Using your credit card abroad safely

While most trips are trouble-free, being mindful of your security ensures a scammer doesn't get access to your account.

Contactless and mobile pay

You can use contactless payment in many destinations around the world. If you see the symbol, you can tap just like at home. The limit might be different in other locations, however. In many EU countries, for example, it's €50.

You might find it better to use Apple Pay or Google Pay, if your card supports it. These are often even more secure because they use biometric data (like your face or fingerprint) and don't require a set limit in the same way a physical card might.

Alerts and monitoring

Many providers, including us, offer instant transaction notifications in their apps. If your provider supports this, a quick alert - like for a shop in another town - can tip you off early so you can freeze your card before any more damage is done.

Public Wi-Fi

Hotel and airport Wi-Fi is convenient, but it's not always secure. Avoid logging in to your banking app while connected to a public network. It's much safer to use your mobile data (if roaming is included) or wait until you're on a trusted, password-protected connection.

Extra protection on bigger purchases

UK credit cards can offer extra protection for certain purchases under Section 75 of the Consumer Credit Act (opens in a new tab).

If you buy something costing between £100 and £30,000 on your credit card and something goes wrong (like the company doesn't deliver what you paid for or goes bust), your card provider may be jointly responsible with the retailer.

That can be useful for travel spending such as:

• Accommodation bookings

• Pre-paid excursions

• Car hire deposits

• Travel experiences paid for in advance

Debit cards can have chargeback schemes, but they're not the same thing and don't have the same legal obligations.

What to do if your card is lost or stolen

1. Contact your provider immediately

2. Follow the steps to report the loss/theft

3. Check your account for transactions you don't recognise

4. Many providers have 24/7 fraud support. You might be able to temporarily freeze your card in the app if you think it's just misplaced

5. Take a beat. Credit cards generally have strong protections against fraud, as long as you report problems promptly

Using a credit card abroad: Your travel checklist

Before you leave for the airport, run through this final checklist to make sure your finances are in order.

• Go local: Always choose the local currency at the checkout to avoid the DCC trap

• Use the app: Enable transaction alerts and make sure you know how to freeze your card

• Check your details: Make sure your contact details are updated so your provider can reach you

• Arrange a backup plan: Carry a debit card and some cash in a separate bag

• Organise payments: Set a Direct Debit so you don't return home to late fees

Take care of your travels with a Capital One credit card

Whether you're booking flights, securing hotel reservations, or managing your overall holiday budget, using a credit card can give you extra peace of mind before you fly.

Ready to see where you stand? Use QuickCheck (opens in a new tab) to find out if you're likely to be accepted for a Capital One credit card before you apply, with zero impact on your credit score.

Have questions about card fees or using your card abroad? Find out more at Capital One's Foreign Fees Support Page (opens in a new tab).