Credit cards with best currency exchange rates

Planning to jet off overseas soon? A credit card can be one of the most convenient and cost-effective ways to spend in a different currency - but only if you pick the right one.

There are a few things to look for in a travel-friendly credit card. The first is the exchange rate, but it’s also important to check whether there are any foreign transaction fees.

In this guide, we’ll run through the best credit cards with the best currency exchange rates available in the UK right now. We’ll cover what exchange rate they use, along with fees, interest rates and any travel perks on offer.

We’ll also touch on a fantastic alternative which could save you money - the Wise card. It’s not a credit card, but an international debit card for spending at the mid-market exchange rate in 150+ countries.

Open a Wise Account Today 🚀

What exchange rate do travel credit cards use?

If you’re comparing credit cards and their exchange rates, the good news is that it’s pretty straightforward. This is because they tend to use the rate provided by the card scheme, which is usually either Visa or Mastercard.

So, you won’t need to do a complicated calculation or comparison to work out which rate is best. It’ll just be one of two options - the Visa rate or the Mastercard rate.

Which exchange rate is better - Visa or Mastercard?

According to trusted consumer finance website MoneySavingExpert, there isn’t much to choose between the Visa and Mastercard exchange rates.

MSE claims that Visa may just have the edge. It carried out checks on rates over a couple of months, and Visa had the better exchange rate on 91 occasions while Mastercard was the winner on 72 occasions.¹

As an example of how little there is in it, here’s a quick comparison done at the time of writing (07.09.23) on converting €100 EUR to GBP. This is typical of holiday spending in Europe, where you might spend €100 on your credit card for a meal out, for example.

Card issuer	Exchange rate	Amount
Visa²	1 EUR = 0.857869 GBP	£85.78 GBP
Mastercard³	1 EUR = 0.857971 GBP	£85.80 GBP

So as you can see, it’s really close. In fact, there’s just a couple of pennies difference between the Visa and Mastercard exchange rates for this particular example.

The great news though is that both rates are pretty near perfect. This means you can go ahead and choose the right card for your needs, whether it’s based on low/no fees, APR, rewards or benefits.

The 9 best credit cards with the best currency exchange rates

Choosing the right travel credit card can be tricky, as there are a lot of them out there. There’s also eligibility to consider, as it’s unlikely you’ll be accepted for every card - unless you have an amazing credit score.

To help make it easier, we’ve put together a list of the main contenders. These are the UK-issued credit cards with the best currency exchange rates, no foreign transaction fees and some extra perks too.

Card	Exchange rate	Card fee	APR	Features
Barclaycard Rewards Credit Card	Visa rate	None	27.9%	- Cashback on spending - No foreign transaction fees, inc. cash withdrawals - Free Apple subscriptions
Halifax Clarity Credit Card	Mastercard rate	None	Varies	- No foreign transaction fees, inc. cash withdrawals - UK customer support - Fraud protection
Virgin Atlantic Reward Credit Card	Mastercard rate	None	26.9%	- Earn Virgin Atlantic + Holiday points on spending - No foreign transaction fees for EUR
Royal Bank of Scotland Credit Card	Mastercard rate	None	12.9%	- No foreign transaction fees
NatWest Credit Card	Mastercard rate	None	12.9%	- No foreign transaction fees - Installment plans
Santander All in One Credit Card	Mastercard rate	£3 a month	21.9%	- No foreign transaction fees - 0% interest on purchases for 15 months - Cashback on purchases
Bip Cardless Credit	Mastercard rate	None	29.9%	- No foreign transaction fees, inc. cash withdrawals - Cardless credit stored on your phone
Zopa Credit Card	Visa rate	None	From 24.9%	- No foreign transaction fees - Credit Cushion - Instant notifications
Metro Bank Credit Card	Mastercard rate	None	14.9%	- Free transactions and withdrawals within Europe

1: Barclaycard Rewards Credit Card⁴

The Barclaycard Rewards Card is a great choice for holidays and travel overseas. It has no foreign transaction fees, including for cash withdrawals (which is rare for credit cards). You’ll just need to watch out for fees charged by some ATM operators.

The credit card is a Visa, so it uses Visa’s standard exchange rate to convert currency.

It comes with some attractive extras, including:

• 0.25% cashback on all everyday spending
• Protection on purchases over £100
• Up to 5 months of free Apple subscriptions, including Apple TV+, Apple Music, Apple Fitness+, Apple News+ and Apple Arcade.

The representative interest rate on purchases is 27.9% APR (variable).

2: Halifax Clarity Credit Card⁵

The Halifax Clarity Credit Card is another top choice for travel. It has no annual fees and no foreign transaction fees, which includes overseas ATM withdrawals. Just watch out for fees charged by the ATM operator, and remember that interest will start accruing from the day you make the withdrawal.

Any money you spend or withdraw in other currencies is converted using the Mastercard exchange rate on that day. The interest rate on the card is determined upon application.

The interest rate and credit limit you’ll be offered is determined on application. Like many of the other providers on our list, Halifax has an eligibility checker tool you can use before you apply.

3: Virgin Atlantic Reward Credit Card⁶

If you frequently fly with Virgin Atlantic or book trips with Virgin Holidays, this could be the credit card for you.

The Virgin Atlantic Reward Credit Card lets you earn points towards future purchases at both brands whenever you spend.

Here’s what you can earn:

• 0.75 Virgin Points for every £1 spent on everyday purchases
• 1.5 points for every £1 you spend with Virgin Atlantic or Virgin Holidays.

And if you spend £20,000 in a year, you’ll also get an upgrade to a Premium or Companion ticket on Virgin Atlantic flights.

There’s no annual fee for the card, and no foreign transaction fees for payments in Euros, Swedish Krona or Romanian Lei within the European Economic Area (EEA).⁷

There is however a 5% handling fee for cash withdrawals and other cash advance services. You should also bear in mind that interest on cash withdrawals will start to accrue right away, and ATM operators may charge their own fee.⁷

The representative interest rate is 26.9% APR (variable), based on a credit limit of £1,200. Credit limits will vary based on your circumstances though.

You can check your eligibility and apply online at the Virgin Money website.

The card uses Mastercard’s exchange rate to convert currency.

4: Royal Bank of Scotland Credit Card⁸

The RBS Credit Card is a cost-effective option for use both overseas and at home in the UK. It has no annual fee, foreign transaction fees (although fees will still apply for cash withdrawals) or balance transfer fee. It also has a low APR on spending, at just 12.9% p.a. variable.

It’s a Mastercard, so it uses the card scheme’s rate for converting currency when you spend abroad.

The card doesn’t have much in the way of extra fees. However, it’s still a good pick if affordability and travel-friendliness are at the top of your priorities list.

5: NatWest Credit Card⁹

The NatWest Credit Card is almost a carbon copy of the RBS credit card, which is perhaps unsurprising as they’re part of the same banking group.

It has no annual or foreign transaction fees on spending, although there is still a small fee for cash withdrawals. ATM operators in some countries may also charge their own fee. And like other credit cards, interest on cash withdrawals starts to accrue right away.

The card has the same low interest rate, a representative 12.9% APR (variable) on purchases. It’s the bank’s standard everyday credit card, but it also happens to be pretty good for travel.

It’s a Mastercard, so it uses the Mastercard exchange rate for currency conversions.

The NatWest Credit Card doesn’t have many extra features, although you can sign up for an instalment plan. This lets you spread the cost of large purchases.

6: Santander All in One Credit Card¹⁰

The Santander All in One Credit Card comes packed with features, including:

• 0.5% cashback on all purchases
• No foreign transaction fees on purchases - although there is a 3% fee for cash withdrawals (minimum £3)¹¹
• 0% interest on balance transfers for 15 months, and no balance transfer fee
• 0% interest on purchases for 15 months

The card also has a £3 monthly fee, adding up to £36 a year. This makes it the only credit card on our list which has a fee. The interest rate for purchases is 21.9% APR (variable), which is based on an assumed credit limit of £1,200.

It’s another Mastercard, so it’ll be the Mastercard rate used to convert the currency when you spend abroad.

7: Bip Cardless Credit¹²

The next option on our list is a little different. Bip is a UK financial technology company specialising in cardless credit on your phone. It offers digital credit through British financial services company NewDay Ltd.

To sign up, you’ll get the Bip app and apply for digital credit. You can also check your eligibility first. If accepted, you can simply add your virtual credit card to Apple Pay or Google Pay, then make contactless payments using just your phone.

Bip cardless credit has a representative interest rate of 29.9% APR (variable), with starting credit limits from £250. It has no monthly or annual fees.

There are no foreign transaction fees either, for both spending and cash withdrawals. However, you will need to find a cardless ATM, and they’re not all that common. Remember that ATM operators may charge their own fees, and that interest on cash advances starts accruing right away.

Bip uses the Mastercard exchange rate for currency conversions.

8: Zopa Credit Card¹³

You might not have heard of Zopa. It’s a British financial technology company, which also offers credit cards. In fact, it was even named Best Credit Card Provider in the British Bank Awards 2021.

The Zopa Credit Card is great for travel, as it has no annual fees and no foreign transaction fees for spending outside the UK.

You’ll just need to be aware of the £3 flat fee per cash withdrawal.¹⁴ This fee applies to purchasing foreign currency, sending wire transfers, gambling and paying off debts, as well as using the card at an ATM.

Interest rates start from 24.9%, with this and the available credit limit based on eligibility when you apply.

Other Zopa credit card features include:

• Credit Cushion, letting you set aside some of your credit balance ready for when you really need it
• Instant payment notifications
• Real-time balance updates
• View your PIN securely in the app
• In-app card controls, such as the option to freeze your card if you lose it.

It’s a Visa, so it uses the scheme’s standard rate for converting currency when you spend or withdraw cash.

9: Metro Bank Credit Card¹⁵

The everyday low rate credit card from Metro Bank offers fee-free spending and cash withdrawals in most European countries.

Outside of Europe, there’s a non-Sterling transaction fee of 2.99% for both purchases and cash withdrawals. You’ll also pay an extra fee of £1.50 for cash withdrawals. The card uses Mastercard’s exchange rate for currency conversions.

The Metro Bank Credit Card has a representative APR of 14.9% (variable), based on an assumed credit limit of £1,200. There are no monthly fees either.

The only snag is that you’ll need to pop into your local Metro Bank branch to apply for this card. However, your new credit card should be printed and ready to use on the spot.

Get the Wise card for international spending and cash withdrawals

Want great exchange rates and low fees for overseas spending, plus a powerful multi-currency account too? Check out Wise.

Wise is a money service business, which offers a multi-currency account, international money transfer services and a debit card.

The Wise card isn’t a credit card, but it is a fantastic option for low-cost spending and cash withdrawals worldwide.

This contactless international debit card can be used in 150+ countries, pretty much everywhere Visa and Mastercard are accepted. This includes online, so it’s great for shopping on overseas websites. You can even add it to your mobile wallet, for easy contactless payments using just your phone.

The Wise card automatically converts your pounds to the local currency whenever you spend, using the margin-free mid-market exchange rate. There’s just a small conversion fee, or there’s no charge if you already have the currency in your Wise account. There are no foreign transaction fees to worry about.

Need cash? You can withdraw up to £200 a month with no Wise fee (although ATM operators may charge their own fee).

Learn more about Wise

And if you need to send money overseas, such as to pay expenses on a holiday home or book a hotel, you can use your Wise account to do it in just a few clicks. Wise makes it easy to send money all over the world, for low, transparent fees.

Please see the Terms of Use for your region or visit Wise fees & pricing for the most up-to-date information on pricing and fees.

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And that’s it - our rundown of the best credit cards with the best currency exchange rates available in the UK right now. We’ve included cards from big banks and digital providers alike, along with non-credit cards like Wise that are tailor-made for worldwide adventures.

You should have all the info you need to compare fees, rates and perks, and choose the right card for you.

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Sources used:

1. MoneySavingExpert - Top cards for travelling abroad
2. Visa - Exchange Rate Calculator
3. Mastercard - Convert currency
4. Barclaycard - Barclaycard Rewards
5. Halifax - Travel Credit Cards
6. Virgin Money - VAA Cards
7. Virgin Money - Virgin Atlantic Reward Credit Card Summary Box
8. RBS - The Royal Bank Credit Card
9. NatWest - The NatWest Credit Card
10. Santander - All in One Credit Card
11. Santander - All in One Credit Card Summary Box & Key Information
12. Bip Credit - Summary Box
13. Zopa - Credit Card
14. Zopa - Credit Card fees
15. Metro Bank - Credit Card

Sources last checked on date: 07-Sep-2023