Also called a foreign usage fee or non-sterling transaction fee. Charged by many UK bank cards when you spend in a foreign currency — typically 2.75–3% on every transaction. On £2,000/month of spending abroad, that's £55–60/month or £660+/year. Solution: Starling Bank, Monzo, Wise card, and Revolut (within plan limits) all charge zero FTF. Switch your daily spending card to one of these before you leave.
Two separate fees can apply when withdrawing cash from an overseas ATM: (a) your card provider's fee, and (b) the local ATM operator's fee. Starling and Monzo do not charge their own ATM fees abroad. Wise allows fee-free ATM withdrawals up to a monthly limit. Local ATM operator fees are unavoidable on some machines but can often be avoided by using bank ATMs rather than standalone machines.
DCC is when an ATM or card terminal offers to convert your transaction to your home currency at the point of payment. It sounds convenient but always adds 3–7% on top of the amount. Always decline DCC. Always choose to be charged in the local currency. This applies at ATMs and at payment terminals in shops and restaurants. The bank's rate will always be better than the merchant's DCC rate.
Recommendation: Open Starling before leaving the UK for fee-free spending and UK Direct Debits. Add Wise card for multi-currency flexibility. Both together give zero fees on virtually all day-to-day spending abroad.
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