Cosying up at home beside the fire isn’t everyone’s idea of a perfect Christmas as hundreds of thousands of Brits will be celebrating abroad. But for many, the costs don’t just end with flights and holiday accommodation but use of their bank card overseas.

On ITV’s This Morning, money-saving expert Martin Lewis shared a warning to Brits as they head off on their winter getaways.

He explained that using the wrong card can quietly add about 3% in fees to every transaction. That means a £2,000 holiday could cost you an extra £60 in needless bank charges before you’ve even bought a souvenir. 

Lewis ran through the usual holiday checks – passports, travel insurance, delayed flights – but his advice on one particular debit card really stood out. He highlighted a card that offers “near-perfect” exchange rates and has even beaten those rates in the past.

Travel experts at Ski Vertigo agree that the most relaxed trips are those where everything is organised, prices are budget-friendly, and costs are clear upfront. With expensive credit cards, that certainty is often impossible to achieve, showing just how valuable Lewis’ advice is.

During the show, Lewis took a call from a viewer travelling to America who always uses her debit card abroad. He was clear: “I’m a massive fan of using cards abroad,” he said, “but it depends which card you are using.”
He explained what usually happens when you tap your card overseas. “When you go abroad and spend on plastic, your bank gets a perfect exchange rate on the day, wherever you are,” he said. “Most then add what’s called a non-sterling exchange rate fee of 3%. So if you buy something costing $100, you actually pay $103.”

In short, the exchange rate itself is usually fair – it’s the bank’s extra fee that hurts. On top of that, some debit cards charge a flat fee of about 50p to £1.50 every time you use them abroad, plus extra costs for cash withdrawals.
Lewis’ advice is to avoid “normal” cards for foreign spending and use a specialist travel card instead. He said: “There are a whole raft of cards which don’t charge the non-sterling exchange rate fee, so you get the same near-perfect rate the bank does. That’s the best way to spend abroad.”

In his This Morning phone-in, Lewis highlighted one card in particular. “You’ve got the Chase debit card,” he said. It’s an app-based account you can open without switching banks, with a virtual card available “within minutes” once you’re accepted. He described it as offering “near-perfect exchange rates” and summed it up as “an easy option… just go get yourself a Chase card, it’s free… It’s absolutely the cheapest way to spend.”

He also mentioned other cards like Halifax Reward and the Barclaycard travel card, but Chase was clearly his top pick.
He reassured viewers that you can add the Chase card straight into your phone wallet. When asked if the Chase account works with Apple Pay, he replied, “Yeah, absolutely… they applied, got the app, added it to Apple Pay within two minutes, and then used it for the rest of the holiday.”

Chase is one of several UK debit cards that allow overseas spending with no foreign transaction fees, alongside others like Starling, First Direct, Monzo, and Virgin Money M Plus.

Lewis advises travellers not to assume their everyday card will be cost-effective overseas. Check the foreign-use fees, compare them with a specialist travel card, and set up the right option before you go. The choice can be the difference between a holiday that stays on budget and one that quietly costs more than expected.