The battle of the overseas spending cards - get PAID to bag near-perfect rates

It's that exciting time of year when thoughts turn to sun, sea, sangria and... spending. If you want it cheap and easy (spending, that is) we've said for years the best way is to use specialist plastic to protect your wallet from hideous charges. But cards can take a few weeks to arrive, so now's the perfect time to sort your holiday wallet.

We're big fans of these cards as they don't charge the typical 3% exchange fee most levy. So £100 in euros costs just that, not £103. Plus none charge ATM fees (local ATMs may do) though you may pay a little interest on cash. There are four cards competing for top spot. Some key points first:

- You need to pass a credit check with all bar Starling to get 'em.
- Mastercard often beats Visa on exchange rates so we make it clear which card is which.
- With a credit card you've additional 'Section 75' protection, as the card firm's jointly liable if something goes wrong with any purchases worth £100-£30,000.

• Great long-term track record + get PAID £20. The Halifax Clarity (eligibility calculator / apply*) Mastercard credit card has been one of our top picks for spending abroad for years. And if you apply by 31 Aug, you get £20 cashback within 90 days if you make a transaction in a foreign currency by 30 Sep. It charges 18.9% rep APR, so pay IN FULL to avoid spending interest. 
  
  Any cons? You pay 18.9% interest on cash every day till paid off, so it's best to pay it back immediately to minimise costs (about 5p per £100 per day). 
  
  
• No credit check, no cash charges + get PAID 0.5% interest. The Mastercard debit card from app-only Starling Bank (apply*) is easier to get as there's no full credit check if you don't want an overdraft. It's a current account but there's no need to switch to it and no min pay-in or direct debit requirements, so it's more like opening a prepaid card.  
  
  As it's a debit card you're not charged interest, so you've fee-free withdrawals. In fact, you'll be paid interest on credit balances - at 0.5% AER variable on up to £2k or 0.25% on £2k-£85k. Any money in there is protected up to £85,000 per person by the Financial Services Compensation Scheme.
  
  Any cons? There's no Section 75 protection and some may not like the fact it's app-only. Also, we've seen other newbies cut perks after launching similar deals, so there's always a risk it could happen here. If it does, you can just leave.
  
  
• No cash charges and there's protection on many purchases. The Barclaycard Platinum travel (apply) Visa credit card has no exchange fees on purchases or withdrawals, and unusually doesn't charge interest on overseas cash withdrawals paid in full each month. Plus because it's a credit card, unlike Starling above you get Section 75 protection on purchases. Pay IN FULL to avoid the 19.9% rep APR on spending and 27.9% on cash.
  
  Any cons? As a Visa it tends to give slightly worse rates than Mastercard. Also you won't qualify if you've had a Barclaycard in the last 6mths and there's no free money like the others. Meanwhile, it's only committed to being fee-free abroad till Aug 2022.
  
  
• Good at home and abroad as you're PAID 0.5% cashback on ALL spending. If you just want one card for the UK and abroad, the Tandem (apply*) Mastercard credit card is attractive as you get 0.5% cashback wherever you spend (not on withdrawals). It's 18.9% rep APR, so pay IN FULL to avoid spending interest. 
  
  Any cons? You also pay 18.9%-24.9% rep APR interest on cash till paid off, so even if abroad it's best to pay it back immediately to minimise costs (from about 5p per £100 each day). Plus, its app has some poor reviews, and it's new so doesn't have a track record of maintaining good rates.  

See Top Credit and Debit Cards for Spending Abroad for lots more help.  

One of the big selling points of prepaid cards over other types of plastic has always been that there's no credit check so they're easier to get, but that's the same for Starling's debit card (above). So the big difference with prepaid cards is you can lock in the rate on the day you load up the card, protecting yourself if rates get worse (though you won't benefit if rates get better). Whereas on the cards above it's always when you spend. Here's our top pick:

• Perfect interbank rate (mostly) but limited cheap cash withdrawals. This Revolut* card normally costs £5 delivery, but go via our link above and it's free.
  
  On spending, you can choose to load and convert immediately to 25 currencies including euros and dollars -  so you get the perfect interbank rate on that day in those currencies.
  
  Alternatively, you can also load it in pounds and spend abroad in ANY currency to get the rate on the day you spend. Done that way, it'll be the perfect rate on most currencies.
  
  Any cons? You can only withdraw £200/mth before incurring a 2% charge. And if you load with pounds, when you come to spend, there's a 1.5% fee on Thai baht and Russian roubles, and a 0.5%-1% fee on other currencies if you spend at weekends (UK time).

Full details and more options in Cheap Prepaid Cards.

- When they ask 'Do you want to pay in pounds or euros?', what should I do? Always pay in local currency. If in pounds, the overseas store, restaurant, bank etc does the conversion, and rates can be awful. It's the same for cash. For an explanation, see Martin's Pay in euros? blog. 

- I need cash before I go. What's the best way? Simply use our TravelMoneyMax comparison tool which compares 30+ bureaux to find the best rate. And NEVER buy from the airport, where rates are hideous.