Using Tesco credit card abroad

Planning an overseas trip? If you’re travelling outside the UK, you’ll want to know the best way to spend on your holiday. It could be more convenient to simply use your existing UK credit card, but it’s always wise to check the fees, terms and conditions first.

In this handy guide, we’ll focus on using a Tesco credit card abroad. We’ll show you how it works and whether there are any fees involved, plus info on exchange rates, security and more.

Also, consider checking out the Wise card from the money services provider Wise. While it’s not a credit card, it’s a convenient international debit card designed for travellers looking to save money while spending abroad.

Learn more about the Wise card 💳

Can you use your Tesco credit card abroad?

Yes, you can use your Tesco Bank credit card outside the UK. All of Tesco’s credit cards should work abroad, accepted anywhere you see the Visa or Mastercard logo at the till.

This means you can use your UK credit card for spending in shops, restaurants, and transport hubs overseas. You can also use it to withdraw cash from foreign ATMs. And you’ll earn Clubcard points on spending, as part of Tesco’s reward scheme.

However, there are charges related to both spending and withdrawing cash abroad - we’ll look at these in more detail in just a moment.

Do you need to let Tesco know you’re going abroad?

You don’t need to tell Tesco that you’ll be travelling outside the UK.¹ You can simply start using your credit card when you land at your destination.

However, it’s important to make sure that Tesco has your correct and current phone number linked to your account. If you login on a new device in a new location, it may need to text you a one-time code to verify that it’s really you.¹

Tesco credit card security features abroad

It’s crucial to think about safety and security before using a UK credit card abroad. The last thing you want is to be a victim of fraud while you’re trying to enjoy your holiday.

So with this in mind, here are the security features which come as standard with Tesco credit cards:

• Section 75 protection on purchases between £100 and £30,000. If something goes wrong with a purchase (i.e. it’s faulty or you don’t receive the goods or service), this protection allows you to make a claim for reimbursement.
• Text alerts to help you keep on top of spending - and watch out for potentially fraudulent transactions. If you’re worried about roaming charges though, you can always switch these off before you travel.¹
• Block and unblock your credit card on the Tesco mobile app if you lose it.¹

📚 Read more: UK travel credit cards you can use abroad

Charges for using Tesco credit cards abroad

Now we come to that all-important question - how much does it cost to use a Tesco credit card abroad?

Unlike some other travel-friendly travel credit cards, Tesco Bank does have fees for both spending and cash withdrawals when you use its cards overseas.

Here’s a rundown of the key Tesco credit card charges abroad:¹

Transaction	Tesco credit card fee
Spending abroad	2.75% of the transaction amount (not applicable to Tesco Clubcard Plus Credit Card holders)
Withdrawing cash abroad	2.75% foreign exchange fee + 3.99% of the transaction amount (min. £3)

It’s also crucial to know that interest on cash transactions (such as an ATM withdrawal or Bureau de Change purchase) starts accruing right away. So while you may have an interest-free period for spending, this doesn’t apply to anything Tesco classes as a cash transaction.

Lastly, you’ll need to watch out for ATM operator fees. Some ATMs have a charge, which is separate from your credit card provider's own fees. So, try to find a machine offering free cash withdrawals if you can.

If you’re worried about racking up charges while you’re away, it could be a good idea to look at alternative travel cards - or use Tesco’s travel money service to simply buy currency.

What’s the exchange rate for credit cards Tesco uses to convert currency abroad?

Tesco uses either Visa or Mastercard’s exchange rate for converting currency when you spend abroad. It all depends which card you have.

These rates are usually very competitive, and close to the mid-market exchange rate. You can check current Visa rates here, and Mastercard’s here.

An important thing to remember when spending abroad is to always pay in the local currency, rather than your home currency (GBP). This will mean that your card provider or bank does the currency conversion, so you’ll know what exchange rate will be used.

📚 Read more: Credit cards with best currency exchange rates

Are there any transaction limits?

You should be able to spend on your Tesco credit card as much as you like, in line with your personal credit card limit. You should also remember that different contactless spending limits may apply in different countries.

Tesco may impose limits on how much cash you can withdraw a day on its credit cards. It doesn’t say how much this is for credit cards, although to give you an idea, Tesco debit cards have a daily cash withdrawal limit of £400.²

A great alternative for low-cost spending abroad - the Wise card

The Wise card is the ideal travel companion, as it lets you spend and withdraw in the local currency in 150+ countries.

This clever international debit card automatically converts your pounds into the local currency using the mid-market exchange rate, only adding a small, transparent currency conversion fee. Or it’s free if you already have the foreign currency in your Wise account.

Open a Wise account online and you can order your own Wise card for a one-time cost of just £7.

Sign up with Wise today 💰

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And that’s it - everything you need to know about using Tesco credit cards abroad. We’ve covered fees, exchange rates, security and limits. You should have all the info you need to compare it with other UK credit cards and travel spending alternatives.

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Sources used:

1. Tesco Bank - Using credit and debit cards abroad
2. Tesco - Tesco Current Account Terms and Conditions

Sources last checked on date: 13-May-2024