Best Debit Card to Use Abroad [UK Credit vs Debit Cards]

In this article, we’ll discuss the best debit card to use abroad. Including why you may want to re-think using a debit card and instead consider using more secure payment methods like offshore credit cards.

And, if you’re ready to access more advanced payment options, you can click the link above to start opening offshore bank accounts with credit cards today.

Feel free to use the table of contents to jump ahead to the sections most relevant to you.

Table of Contents

  1. Best Debit Card to Use Abroad
  2. How to Choose the Right Card
  3. Debit Cards vs Travel Credit Cards
  4. Frequently Asked Questions
  5. Ready to Explore Your Options?

Best Debit Card to Use Abroad

The best debit card to use abroad should include a combination of security, cost-effectiveness, and convenience. In other words, you should not need to worry about your card being stolen, you should not be charged foreign transaction fees, and you should not need to hunt for a specific ATM network in order to withdraw cash. 

But, determining the specific debit card that meets all these objectives isn’t as easy as it might sound. Plus, there are additional considerations such as the fees to maintain cards, charges for payments in foreign currency, and more.

The above considerations are especially true if you make a lot of payments in foreign countries because certain banks place restrictions on withdrawals and transactions.

Not to mention, the first step in the process of obtaining a debit card is opening a bank account. Now, if you are a resident of the UK, opening a UK bank account might not sound like an onerous task. But, non-residents know that navigating the UK banking system is not as easy. With this in mind, we share a number of resources to help foreign non-residents open UK bank accounts in our European Banking content (available above).

In the next section of this article, we’ll take a look at how to choose the right credit card based on the specific benefits you’re looking to access.

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How to Choose the Right Card

Ultimately, everyone is after the same thing, lower cost, greater convenience, and as many benefits as possible. But, the specific benefits that everyone is after can differ. So to can the way that each person uses their debit card.

For example, one person may use their debit card for in-store purchases only. On the other hand, the next person may only make online purchases. And another person may choose to make all their purchases in cash, only using their debit card to withdraw cash.

So, it can be difficult to narrow down the exact process to find the best card for everyone. With this in mind, we’re going to look at three key variables, which include:

  • Foreign transaction fees
  • ATM withdrawals
  • Access to your funds

In the next section, we’ll also take a look at debit cards vs credit cards and why you may want to consider the latter instead.

Card Has No Foreign Transaction Fee

If you are making a lot of purchases in foreign currencies, you may want to look for a card that has no (or low) foreign transaction fees. Otherwise, you could end up paying an extra 2% to 4% on any currencies outside of the currency that your card is in. This is true whether you are making purchases online or if you are making purchases in person while traveling abroad.

Free ATM Withdrawals

On the other hand, if you are only planning on using your card while traveling, you may plan to use it to access cash. In that case, you should consider the cards that allow you to withdraw money from foreign ATMs without fees. Unfortunately, even if you do this, many ATMs will still charge high fees per withdrawal with a foreign card. So, you should always pay close attention to the ATM withdrawal fees before accessing your money.

Card Links to Your Current Account

While having direct access to your current account is beneficial, it can also be a risk. And, while major card issuers have increased security protocols and fraud prevention, it is still possible for funds to be stolen from your debit card while traveling. Obviously, the first step in protecting your money is being vigilant about your card security. However, you could also reduce risk by not using a debit card in the first place.

Debit Cards vs Travel Credit Cards

As mentioned, frequent travelers and individuals who are planning to make purchases or ATM withdrawals abroad may want to use credit cards instead. In addition to advanced fraud protection, most major credit cards also offer a range of bonuses. Not to mention lower (or no) foreign transaction fees.

Debit Cards

Debit cards are useful for quickly accessing cash without the need to pay cash advances or interest rates on the money withdrawn. However, in most cases, debit cards are directly tied to current accounts where people keep a large portion of their available cash. With this in mind, carrying a debit card into unfamiliar places and using the cards at merchants you have not shopped with before can put your funds at greater risk.

Travel Credit Cards

Travel credit cards are often seen as a more safe and more secure way to make international purchases. This is especially true when you consider the fraud and theft protection offered by most major credit card issuers. Additionally, credit card issuers offer attractive bonuses, incentives, and cash-back rewards to clients who can make qualifying purchases and use their cards regularly. This can make credit cards an even more attractive option to individuals who plan to use their cards while traveling.

Frequently Asked Questions

Below are three of the most common questions that we receive from people looking for the best debit card to use abroad. If you have further questions you would like answered, don’t hesitate to get in touch with us directly.

What Debit Cards Do Not Charge a Foreign Transaction Fee?

Many of the large UK banks issue debit cards and do not charge a foreign transaction fee. These banks include HSBC, NatWest, Lloyds, Barclays, Santander, and more. Additionally, many of the UK’s digital banking platforms are starting to offer a range of competing services with no fees on purchases or withdrawals abroad.

Is It Better to Use a Debit Card Abroad?

In most cases, people choose to use a credit card instead of a debit card when they are traveling abroad. This is because most credit cards have stronger consumer protections, including protection against fraudulent purchases and theft.

Is It Cheaper to Withdraw Cash Abroad or Use Debit Cards?

When you withdraw cash abroad you need to be aware of the fee charged by the bank issuing your debit card. However, you also need to consider the fee charged by the ATM. The combination of these two fees can result in extremely high withdrawal fees. So, it’s best to consider (and confirm) these fees before making withdrawals.

Ready to Explore Your Options?

If so, you can access GlobalBanks Insider and start the process of applying for an offshore account in a few clicks.

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GlobalBanks Team
GlobalBanks Team

The GlobalBanks editorial team comprises a group of subject-matter experts from across the banking world, including former bankers, analysts, investors, and entrepreneurs. All have in-depth knowledge and experience in various aspects of international banking. In particular, they have expertise in banking for foreigners, non-residents, and both foreign and offshore companies.

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