Using Your Halifax Credit Card While Travelling Abroad in 2023: Fees, Benefits, and Alternatives
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Read moreAre you planning to use your Halifax credit card on your next trip abroad? Well, get ready for a few potential headaches: many Halifax customers have reported unexpectedly high fees on their statements after using their credit cards while travelling overseas.
Fortunately for you, there are a few alternatives to choose from if you prefer low-cost holiday spending. In this post, we walk you through the fees and exchange rates you'll meet when using your Halifax credit card abroad and offer savvier alternatives to use instead. So, whether you're planning a weekend getaway, a business trip, or a dream vacation, read on to learn how to make the most of your card spending while abroad!
Halifax's credit cards are expensive to use abroad. Here are the cheapest alternatives instead:
- Revolut: Best card for multi-currency balances.
- Starling Bank: Best bank alternative to Halifax.
Key Facts About Halifax Credit Cards Abroad
💱 FX Margin | 0% |
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💷 Conversion Fee | 2.95% |
🏧 ATM Fee | 5% |
⭐ Best alternative |
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Using Your Halifax Credit Card Abroad
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Using Your Halifax Credit Card Abroad
It should go without saying that credit cards are versatile tools that you can use to handle all kinds of financial transactions while on holiday abroad. This is no different with Halifax's range of credit cards, all of which enable you to:
- Pay at point-of-sale machines in foreign countries,
- Withdraw local cash banknotes from foreign ATMs,
- Book or handle deposits for car rental agencies, hotels, or flights.
In addition, some Halifax credit cards also let you take advantage of travel insurance, rewards, cashback, and other exclusive benefits while travelling abroad. It's always a good idea to check what benefits might apply to you before you travel so that you know what you can and cannot expect to take advantage of.
Halifax Credit Card Fees Abroad
Although they're easy and convenient to use abroad, Halifax credit cards come with some costs you should consider before travelling abroad. We've summarised them below (ignoring non-travel-related costs like annual fees, cash advance, and interest charges):
All told, these costs can lead to an unnecessarily pricey trip abroad. Let's break them down with a typical example:
Point of Sales Transactions
Suppose, for example, you're on holiday in Paris and decide to spend €100 on a boutique fashion item you like. You pay with your Halifax credit card. The first thing that happens behind the scenes will be the conversion of your pounds into euros. Fortunately, this occurs at the Visa or Mastercard exchange rate (which is generally within 0.3% of the actual mid-market exchange rate) without Halifax charging its own exchange rate on top of that. This means you won't pay much for exchanging currency, and assuming your credit card is a Mastercard, you'd be paying £88.79 (at Mastercard's rate) instead of £88.49 (at the mid-market rate) on the final statement at the time of writing. Not a big deal, right?
However, it doesn't end there. Next, Halifax will hit you with a 2.95% foreign exchange fee. This fee is rather high and leaves the final cost on your bank statement at £91.40 (2.95% or £2.61 higher than a fair exchange). This may not sound like a lot, but consider that you'll be hit with this fee every time you tap your credit card, so it all stacks up quite quickly.
Cash Withdrawals
The costs are even more profound when using your Halifax credit card to withdraw cash. Sticking with our example, suppose you next wanted to withdraw €1,000 to get you through a few more days of Parisian spending. Here, you would again pay the Mastercard exchange rate (£2.92 for a €1,000 conversion at the time of writing) plus the 2.95% foreign exchange fee (this time amounting to £26.19). On top of this, you'd then pay an additional 5% on the remaining amount (or £42.94 in this case).
After factoring in this combined £72.05 (or nearly 8%!) fee, the pound conversion on your bank statement would be a whopping £959.93.
Better Alternatives
Fortunately, there are much more affordable ways to spend your pounds while travelling to Paris or anywhere else in the world. Below, we suggest three world-class UK-based alternatives for you to consider depending on your individual needs and preferences:
Revolut: Best for Multi-Currency Balances
Revolut's debit card is another good way to spend money while abroad because it allows you to pay in over 150 currencies at the real exchange rate (although fair use limits and weekend surcharges may apply), and additional features like budgeting tools and travel insurance (on the paid plans).
- Multi-Currency Balances: Yes (available in 35 currencies)
- FX Margin: 0% /transaction
- FX Fixed Fee: 0.5% /transaction
- ATM Withdrawal Fee: 2% /withdrawal
- Best For: Balances in multiple currencies and convert between them.
Starling Bank: Best Complete Bank Alternative
Starling Bank is a first-class online bank whose debit Mastercard is an excellent way to spend money abroad because it offers no fees whatsoever on any foreign currency spending. It also provides an excellent current account which we've ranked as the best online bank in the UK.
- Multi-Currency Balances: No
- FX Margin: 0% /transaction
- FX Fixed Fee: 0% /transaction
- ATM Withdrawal Fee: 0% /transaction
- Best For: A complete bank account alternative to Nationwide
FAQ About Halifax Credit Card Abroad
🌴 Can I use my Halifax credit card abroad?
Yes, you can most certainly use your Halifax credit card abroad! Being cards issued by Visa or Mastercard and offered by one of the UK's largest banks. Halifax credit cards are accepted worldwide, and you can use them to make purchases or withdraw cash from ATMs. However, you may be charged a fee for using your card abroad, so it's best to compare your options online before you decide to use your Halifax credit card on your next holiday.
💷 What are the fees to use my Halifax credit card abroad?
If you use your Halifax credit card abroad, you'll be charged a foreign exchange fee of up to 2.95%, and if you withdraw cash from an ATM, you'll additionally be charged a cash advance fee of 5%. You may also be charged a third-party ATM network fee, though these fees aren't charged by Halifax but are set by the bank or operator that owns the ATM.
🧾 Can I avoid Halifax credit card fees abroad?
You can consider using a travel card to avoid fees when using your Halifax credit card abroad. There are excellent options out there, like Revolut, which charges incredibly competitive fees and exchange rates when travelling abroad, as well as multi-currency balances to help you dodge conversion fees altogether when tapping your card or withdrawing cash.
📞 How do I notify Halifax that I am traveling abroad?
You can notify Halifax that you intend to travel abroad by using their online banking service or by calling their customer service helpline. It's always a good idea to let Halifax know when and where you'll be travelling because they may decide to block your card if they notice unsuspected activity from abroad.
💳 What if my credit card is lost or stolen while I'm abroad?
If your Halifax credit card is lost or stolen while travelling abroad, you should contact Halifax immediately to report the incident. Halifax has a 24-hour helpline for lost or stolen cards, and they can assist you with cancelling your card and arranging for a replacement to be sent to you, even if you're still located overseas. If your card is stolen, you should also consider contacting the police or local authorities to report the theft.
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