Santander 123 Credit Card Charges Abroad: Everything You Need to Know Before Traveling

If you’re planning to travel abroad with your Santander 123 Credit Card, understanding how foreign-transaction charges work is essential. Many cardholders are surprised to find small additional fees on their statements after international trips. This guide explains what charges apply, how Santander handles currency conversions, and ways to minimise costs when using your card overseas.

Overview of the Santander 123 Credit Card

The Santander 123 Credit Card is a popular U.K.-issued card that offers:

• Cashback on certain categories (e.g., fuel, travel, supermarkets)
• Interest-free periods on purchases and balance transfers
• Visa or Mastercard acceptance globally

However, like most standard credit cards, using it abroad can trigger extra costs — primarily due to foreign transaction fees and exchange-rate conversions.

Does the Santander 123 Credit Card Charge Fees Abroad?

Yes — when you use your Santander 123 Credit Card outside the U.K., you typically pay:

Foreign Transaction Fee

When you make a purchase in a currency other than GBP, you may face a non-sterling transaction fee. On the Santander website it states: “All other Santander credit cards” incur a non-sterling transaction fee of 2.95% of the transaction amount.

However, for the 123 Credit Card specifically, recent documentation is unclear or shows different treatments depending on card variant. As of 2025, Santander UK has not published updated foreign transaction fee rates exclusively for the Santander 123 Credit Card. Customers should verify current fees and exchange rates on Santander’s official website or through customer service before using the card abroad.

Cash Withdrawal Fee (if using an ATM)

If you withdraw cash abroad using your credit card, be aware:

• For “all other Santander credit cards” the non-sterling transaction fee is also applied at 2.95% plus a cash withdrawal fee of 3% (minimum £3) for cash advances abroad.
• Interest starts accruing immediately on cash withdrawals.Thus, using the card for cash abroad can be considerably more expensive than for purchases.

Exchange Rate / Conversion Mark-Up

When you make a non-GBP (foreign currency) transaction:

• The foreign currency amount is converted into pounds using the rate set by Visa or Mastercard on the date the transaction is processed.
• On top of that, Santander’s non-sterling transaction fee (if applicable) will apply.
• Also note: If the merchant offers to charge you in GBP rather than local currency (a process called “Dynamic Currency Conversion”, or DCC), that may come with a poorer exchange rate than letting your card provider handle conversion.

Example — How the Charges Work

Let’s say you spend €100 in France with your Santander 123 Credit Card.

• The €100 is converted at an example rate of €1 = £0.86 → £86.00
• Foreign transaction fee (assume 2.95%) → £86.00 × 0.0295 ≈ £2.54
• Total billed amount = £88.54

If you use your card for multiple purchases abroad, these small fees add up quickly – especially on hotel bookings, dining and travel expenses.

Using the Santander 123 Credit Card Abroad — Pros and Cons

Pros:

• Globally accepted (Visa/Mastercard)
• Cashback still applies (depending on category)
• Secure contactless/chip technology
• Purchase protection under U.K. law

Cons:

• The foreign transaction fee (~2.95%) adds cost on every non-GBP purchase
• Cash advances abroad can get expensive due to withdrawal fees + immediate interest
• Exchange rate conversion still means you pay more than just the local price in GBP
• No built-in “fee-free overseas spending” benefit (unlike some travel-specific cards) unless your specific 123 variant states otherwise

How to Minimise Charges When Travelling Abroad

Here are practical steps you can take:

• Pay in local currency (not GBP). When you’re abroad and making a payment, opt to be charged in the local currency. If you accept GBP instead, you could be hit with dynamic currency conversion costs.
• Avoid cash withdrawals abroad. Use your card for purchases only. If you need cash, use a travel-friendly debit or multi-currency card with lower or no fees.
• Consider a dedicated travel or fee-free card. If you travel frequently, a card that charges no foreign transaction fees may save you significantly.
• Track exchange rates. Before travelling, check the rate your card network (Visa/Mastercard) uses, so you estimate the true cost.
• Use Santander online banking/app. Enable international usage notifications, set spending alerts, and check your transactions while away.
• Register your travel. Some issuers encourage letting them know you’ll be abroad so they don’t block overseas transactions as fraud.

Currency Conversion and Exchange Rate Details

When you make a non-GBP transaction with your Santander card:

• The payment networks convert the foreign currency to GBP using their rate for the day the charge is processed.
• Santander then applies the non-sterling transaction fee (if applicable).
• Important tip: You can use the Visa Currency Converter or Mastercard Rate Calculator online to preview approximately what you will be charged.
• Avoid opting for paying in GBP when abroad — always pay in local currency where possible. The Santander site explicitly advises this.

Are There Alternatives for Fee-Free Spending Abroad?

Yes. If you travel often and overseas spending is common in your budget, you might prefer a card with no foreign transaction fee:

• Halifax Clarity Credit Card – No overseas usage fees and good rates for travel.
• Barclaycard Rewards Visa – Also strong overseas usage features.
• Santander All in One Credit Card – According to Santander’s overseas-use page, this card has “0% non-sterling transaction fee” for purchases and cash withdrawals made abroad in local currency.

If you plan significant overseas spending or frequent travel, comparing cards based on their foreign spend terms (not just UK features) is wise.

What to Do If You Notice Unexpected Santander Charges Abroad

If you review your statement from Santander and see unexpected or duplicate foreign fees:

• Check your transaction history in the Santander App/online banking — identify the original purchase and the conversion charge.
• Compare the posted amount vs what you expected based on the foreign currency and exchange rate on the transaction date (you can use the rate tool).
• Contact Santander UK customer support (for credit cards: +44 1908 237 963 from abroad) and ask them to clarify the fee.
• If you believe there’s an incorrect fee or unfair charge, you can raise a dispute under Santander’s billing-error process or via the U.K. Consumer Credit Act protection.

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FAQ Section

Does the Santander 123 Credit Card charge foreign transaction fees?

Yes — for most non-sterling purchases and cash withdrawals on Santander’s credit cards, the general rate is 2.95% of the transaction for non-sterling purchases. However, for the Santander 123 Credit Card specifically, Santander UK has not clearly published a separate 2025-specific rate. Always check your Key Facts Document or ask the bank.

Can I use my Santander 123 Credit Card abroad?

Yes — the 123 Credit Card is accepted overseas anywhere Visa or Mastercard is supported (assuming your particular variant is one of those networks and your account is in good standing).

Will I earn cashback on foreign purchases?

Generally yes — you should still earn the card’s regular cashback on eligible categories. But the foreign transaction fee still applies unless your terms say otherwise.

Are cash withdrawals abroad expensive with this card?

Yes — withdrawing cash abroad using the credit card will likely incur higher fees (e.g., 3% minimum £3) plus interest from the date of withdrawal. It’s generally best avoided.

Conclusion

Using your Santander 123 Credit Card abroad is definitely convenient — but it comes at a cost. With a typical 2.95% foreign transaction fee (on many Santander credit cards) plus the currency conversion, every overseas purchase can carry a hidden markup.
Before you travel: review your card’s current overseas usage terms, check or enable alerts, and consider whether a fee-free travel card might suit you better. By being informed and taking a few proactive steps, you can enjoy your travels while keeping unnecessary banking fees to a minimum.