Using your Lloyds debit card abroad: Everything you need to know

If you’re heading abroad, you might wonder if you can use your UK-issued debit card for international payments.

Using your Lloyds debit card is a convenient way to spend overseas – but you’ll need to consider how much it costs to spend abroad.

We take a look at how to use your Lloyds debit card while you travel, considering fees, transaction limits and how to make the most of your money.

We’ll also show you an alternative for spending abroad – the Wise card from the money services provider Wise. It’s designed for travel, letting you spend in the local currency in 150+ countries worldwide for low, transparent fees* and mid-market exchange rates.

Learn more about the Wise card

Do Lloyds debit cards work abroad?

You can use your Lloyds debit card abroad just as you would at home, including ATM withdrawals and payments in restaurants, shops and cafés.¹

You can even use your contactless card anywhere with the contactless symbol, as long as your card was issued after 17 November 2017.²

Using your bank card overseas is simple, but you may need to pay international transaction fees. For example, you’ll pay a foreign currency transaction fee and cash withdrawal fee with most Lloyds debit cards.¹

Avoid foreign transaction fees by adding Lloyds Travel Smart to your debit card. This costs 7 GBP per week – and you can use it for up to 6 weeks a year on single or multiple trips overseas.

However, Travel Smart only applies to your bank’s charges, so keep an eye out for independent exchange rate costs or foreign transaction fees from international merchants or providers.³

You’ll need to do your research if you’re heading somewhere off the beaten track, as cash is still the main form of payment in some countries. You may also want to take an alternative debit card with you in case yours is lost or stolen.

What you need to know before using your Lloyds debit card abroad

Although Lloyds previously required you to tell them if you’re travelling abroad, that’s no longer the case – and your bank’s advanced security should stop your payments from being flagged as fraud.¹

Here are a few things you’ll need to consider before using your Lloyds debit card abroad:

• Update your contact details – Lloyds will text or call you if they suspect suspicious activity, such as spending abroad
• Turn off “Abroad Freeze” for your debit card
• Make sure your card doesn’t expire while you’re abroad – if it expires within 90 days, you can order a replacement card before your trip
• Take an alternative debit or credit card with you in case yours is lost or stolen¹

If you pay for your holiday with your Lloyds debit card and something goes wrong, you may also be entitled to a refund under cashback protection.

Contact the seller with your problem first, then get in touch with Lloyds Bank for further advice and support with your transaction.⁴

Charges for using the Lloyds debit card abroad

Lloyds charges transaction fees for spending money abroad. For example, you’ll need to pay a foreign currency transaction fee, foreign currency purchase fee and foreign currency cash withdrawal fee for international payments.

However, if you make a payment in euros within the EEA or UK, you won’t be charged a foreign currency cash fee, foreign cash fee or foreign currency purchase fee by Lloyds.¹

You won’t pay a currency conversion fee to use your Silver, Gold, Platinum and Premier Lloyds debit cards. You may also be able to avoid other debit card fees if you have one of these accounts.¹

Let’s take a look at exactly how much it costs to use most Lloyds debit cards abroad.

Some overseas ATMs may also charge additional fees and charges for withdrawing money. This includes an individual service fee for using an ATM abroad. Make sure to look into these costs before withdrawing cash.

You may also see something called dynamic currency conversion (DCC) whenever you spend abroad. This gives you the choice to pay in GBP, rather than local currency. It sounds simple enough, but DCC can often end up costing more than you might expect.

DCC lets individual merchants and providers set their own currency conversion or foreign transaction fees – and they tend to mark up the standard exchange rate, pocketing the difference at no benefit to you.

Always choose to pay or withdraw in local currency to avoid hefty fees abroad.

What’s the exchange rate for debit cards Lloyds uses to convert currency abroad?

Exchange rate charges apply whenever you spend in a currency other than GBP.

Although providers like Wise use the standard exchange rate, most banks add a markup when you convert from GBP to local currency.

This is how they make money – but it can add a substantial charge to your international purchase. Look out for the mid-market exchange rate. This is the only fair rate out there, with no added markups or hidden fees.

Lloyds Bank offers an exchange rate calculator to help you compare how much it costs to convert euros and other EEA currencies.

Let’s take a look at how much it costs to exchange from GBP to a few other European currencies.

These exchange rates are markups on the standard European Central Bank (ECB) reference rate – and they can fluctuate depending on when you make your purchase.

This means you may not know exactly how much it costs to spend abroad – and you can’t check the rate for other foreign currencies.¹

Are there any transaction limits?

Lloyds may limit how much you can spend or withdraw abroad. You can set your own contactless limit with Lloyds – and the bank lets you choose anything from 30 GBP to 95 GBP.²

You can only take out up to 800 GBP a day from a cash machine, whether you’re in the UK or overseas.⁵ You can also send up to 100,000 GBP per day through online banking with your Lloyds account.⁶

For security reasons, these limits may differ depending on where you travel and which card or account you use. If you’re planning on spending or withdrawing a large payment abroad, make sure to contact the bank before you travel.

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

If you have an account with Lloyds, using your card is a simple way to spend abroad. However, you’ll need to think about how much it costs to convert currencies and make international payments.

Looking for an alternative? Get yourself a Wise card and you can spend at the mid-market exchange rate in 150+ countries, whenever you want.

Open a Wise account online and you can get a Wise card for a one-time cost of just £7. Your card automatically converts currency whenever you spend, so you don’t need to worry about preloading foreign currency to your account or converting cash. There’s only a small conversion fee* to pay.

And if you need cash, your Wise card has you covered. You can withdraw up to £200 a month (max 2 withdrawals) from ATMs for free (although double-check that the ATM operator doesn’t charge its own fee).

Sign up with Wise today 💰

Sources used:

Sources last checked on date: 29-Aug-2024