Every fee your travel card charges — and how to eliminate them

Travel card fees are deliberately obscure. They sit in benefit guides, schedule of fees documents, and fine print rather than on your monthly statement as a clear line item. This guide names every fee, explains how it works, and tells you exactly which cards have eliminated each one.

Foreign transaction fee (forex markup)

The foreign transaction fee — also called a currency conversion fee, cross-border fee, or forex markup — is the most common and costly travel card charge. It's applied as a percentage of every transaction made in a foreign currency, typically 1.5–3% for UK banks. NatWest, Lloyds, HSBC, and Barclays all charge 2.75–2.99% on overseas transactions. This fee is usually disclosed in the Terms and Conditions but rarely shown as a separate line item on statements — it's embedded in the exchange rate you receive. A £5,000 trip with 3% forex fees costs you £150 more than necessary. Zero-fee alternatives: Starling, Monzo, Chase UK, Wise, Revolut (at interbank rate) — all charge 0% forex markup.

ATM withdrawal fees

Most banks charge a fee for using ATMs abroad, separate from the forex markup. This is usually a flat fee (£1.50–£3.00) or a percentage (1.5–2%) of the withdrawal amount, whichever is higher. High-street UK banks typically charge £1.99 per overseas withdrawal plus the 2.99% currency conversion fee. On a £200 withdrawal, that's approximately £7.98 in fees — nearly 4% of your cash. Zero-fee ATM withdrawals: Starling Bank offers unlimited free ATM withdrawals worldwide. Monzo offers free ATM withdrawals up to £200/month. Chase UK offers fee-free withdrawals up to £500/day. Wise charges a small fee after the first £200/month free but otherwise transparent. Revolut's free tier gives £200/month in fee-free ATM withdrawals.

Dynamic currency conversion (DCC) charges

DCC is the fee you pay when a foreign merchant or ATM offers to convert your transaction into your home currency. 'Would you like to pay in GBP or EUR?' — always choose the local currency. When you accept DCC, the merchant applies their own exchange rate (typically 3–5% worse than interbank) instead of your card's rate. Even if your card charges a 2% forex fee, choosing DCC typically costs you 5–7% total — far worse. DCC is always optional — you can always decline. If an ATM forces DCC without asking, withdraw a small amount and use a different machine.

Inactivity fees and closure fees

Prepaid travel cards are particularly prone to inactivity fees — charges applied when you don't use the card for a set period, typically 6–12 months. The Caxton card charges £2/month after 12 months inactivity. Some multi-currency prepaid cards charge £1–£2/month after 6 months. Closure fees (charged when you close an account and withdraw remaining balance) are less common but exist on some older prepaid products. Neobanks (Wise, Revolut, Starling) don't typically charge inactivity fees, but always verify current terms before leaving a balance sitting unused on any card.

Cash advance fees on credit cards

Using a credit card to withdraw cash from an ATM is treated as a cash advance — a fundamentally different transaction from a card payment. Cash advances typically incur: a cash advance fee (1.5–3% of the transaction, minimum £3–£5), interest that starts accumulating immediately (no grace period), and a higher interest rate than purchases (typically 22–27.9% APR). On a £300 ATM withdrawal with a standard credit card: £6–£9 cash advance fee plus immediate daily interest. This makes credit card ATM withdrawals extremely expensive. The exception: some cards specifically waive the cash advance fee for ATM withdrawals — the Halifax Clarity card is the classic UK example. Always verify your specific card's cash advance treatment before using it at an ATM.

Account maintenance fees and tier costs

Revolut, Wise, and similar neobanks offer free base tiers but charge monthly fees for premium features. Revolut Standard is free; Revolut Plus is £3.99/month; Revolut Premium £9.99/month; Revolut Ultra £45/month. The fee tiers unlock better ATM limits, travel insurance, lounge access, and higher interbank rate limits before weekend markups apply. Wise charges no monthly fee but levies a small currency conversion fee on each transaction (typically 0.35–0.65% on GBP/EUR/USD). The best fully free travel card in the UK is Starling — no account fee, no FX fee, unlimited ATM withdrawals, no minimum balance, FSCS protected as a full bank.

Key takeaways