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For UK travellers, the right credit card can quietly save you hundreds of pounds over a few trips abroad. Two of the most talked-about options in 2026 are the NatWest Travel Reward Credit Card and the Halifax Clarity Credit Card. Both remove foreign transaction fees on overseas purchases, but they behave very differently once you factor in rewards, cash withdrawals and how you actually travel. This guide walks through real-world scenarios to help you decide which card fits your plans.
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What These Cards Are Designed For
The NatWest Travel Reward Credit Card is positioned as a straightforward travel card for existing NatWest customers and new applicants who want rewards on holiday spending. It offers no foreign transaction fees on purchases abroad and lets you earn NatWest Rewards on what you spend, especially on travel-related categories. There is no annual fee, making it attractive if you want a simple card you can keep in your wallet all year without worrying about ongoing charges.
The Halifax Clarity Credit Card is a long-standing favourite among frequent travellers because it strips back most fees on overseas use. It charges no foreign transaction fee on purchases and no Halifax fee for cash withdrawals in foreign currency at overseas ATMs, which is rare among UK credit cards. There is also no annual fee, but the card does not offer traditional reward points or cashback.
In practical terms, NatWest Travel Reward aims to turn your travel purchases into a small stream of cashback-style rewards, while Halifax Clarity aims to minimise the cost of spending and withdrawing cash abroad. Your choice largely depends on whether you care more about rewards on card spend or the ability to take out local currency cheaply when you travel.
Both cards use the Visa or Mastercard network exchange rate on foreign currency transactions, which is typically close to the market rate and often better than the rates you would get from a high street bureau de change or many airport currency kiosks. That means either card can be a strong alternative to buying travel money in advance or using a regular UK debit card that might add a 2 to 3 percent foreign transaction fee.
Fees, Interest and How Each Card Treats Your Holiday Spending
NatWest’s Travel Reward Credit Card removes the standard non-sterling transaction fee on purchases abroad, so when you pay for a meal in Barcelona or museum tickets in New York you only face the exchange rate, not a separate foreign usage charge. According to NatWest, there is no annual fee and you earn Rewards on eligible spending, but cash withdrawals count as cash advances and attract a separate fee and interest from the day of the withdrawal. A typical cash advance fee for NatWest credit cards is around 3 percent of the amount withdrawn, with a minimum charge of about £3, and interest is charged immediately rather than after an interest-free period.
The representative APR on the NatWest Travel Reward Credit Card is around the high twenties variable. The exact rate and credit limit you receive depend on your personal circumstances and NatWest’s assessment at the time you apply. If you clear your balance in full every month, the APR becomes less important, but if you sometimes carry a balance those interest charges will quickly outweigh any travel rewards you earn.
Halifax Clarity also removes foreign transaction fees on purchases and, unusually, does not charge a separate Halifax fee for foreign currency cash withdrawals at ATMs overseas. Independent reviews and Halifax’s own summary information highlight that there is no foreign currency purchase fee and no foreign cash withdrawal fee, although the ATM operator abroad can still add its own charge. The main catch is that cash withdrawals start accruing interest from the day of the withdrawal, even if you clear the statement in full at the end of the month.
The representative purchase APR for Halifax Clarity is typically in the low to mid twenties variable, but Halifax does not display a single fixed representative rate. Instead, the APR is confirmed individually after you apply and can vary based on your credit profile. Purchases can benefit from up to around 56 days of interest-free credit if you pay off the full statement balance each month, but cash withdrawals never enjoy that interest-free period and should be repaid as quickly as possible to keep costs down.
Rewards vs Fee-Free Cash: Where Each Card Shines
The main selling point of the NatWest Travel Reward Credit Card is its rewards structure. NatWest states that you can earn around 1 percent back in Rewards on eligible travel spending such as flights, trains, hotels and car hire, between 1 and 15 percent at selected partner retailers, and around 0.1 percent on most other everyday spending. There is no annual fee, so if you already travel a few times a year this can add up to a modest but noticeable rebate on your trips.
Consider a long weekend in Rome for two costing around £800 booked through an online travel agent, plus £200 for local restaurants and attractions on the card. If all of that £1,000 spend qualifies for the 1 percent travel rewards rate, you might earn roughly £10 in NatWest Rewards. That is not life changing, but across two or three trips in a year plus some day-to-day use at partner retailers, you might build up £40 to £80 that you can redeem as cash, gift cards or contributions towards bills or charity.
By contrast, Halifax Clarity does not focus on rewards. There is no points scheme or travel cashback built into the card. Instead, the value lies in avoiding fees that many other cards would charge. For example, a typical UK credit card might add about 3 percent on top of the exchange rate for any non-sterling transaction. Spend £1,000 in local currency on such a card over a holiday season and you could easily pay around £30 in foreign transaction fees. Halifax Clarity eliminates that cost, which in effect is equivalent to earning 3 percent “rewards” in the form of savings.
The advantage becomes even clearer with ATM withdrawals. Suppose you are in Thailand for two weeks and withdraw the equivalent of £100 in baht from an ATM three times using a regular UK credit card that charges a 3 percent cash fee plus interest. You could face nearly £9 in fees on top of any interest, and more if the card also adds a foreign transaction markup. With Halifax Clarity there is no Halifax cash withdrawal fee on those foreign currency ATM withdrawals, so the only cost from the card issuer is interest that accrues from the withdrawal date until you repay. If you move money to clear the cash balance within a few days, the interest might translate to only a few pounds, often less than what you would have paid in fees on other cards.
Real-World Holiday Scenarios: Which Card Works Better?
Imagine a typical one-week summer trip from the UK to Spain. You book return flights to Malaga for two people at around £300, a mid-range hotel in the Costa del Sol for £700, and spend around £400 locally on meals, attractions and train tickets. Total card spend in foreign currency is approximately £1,100. You also withdraw the equivalent of £150 in cash from ATMs during the week because a few small cafés and beach bars still prefer cash.
If you use the NatWest Travel Reward Credit Card and all the travel bookings qualify for 1 percent rewards, the flights and hotel at £1,000 could generate around £10, and the additional £100 of card spending at 0.1 percent would add a few pence more. However, the £150 cash withdrawal would incur a cash fee of roughly £4.50 (based on a 3 percent fee with a £3 minimum) plus immediate interest at your cash advance rate. Unless you repay that cash portion quickly, the total cost could easily swallow most of the rewards you earned on the trip.
Using Halifax Clarity for the same Spain holiday, there are no foreign transaction fees on the £1,100 of card purchases and no Halifax cash withdrawal fee on the equivalent of £150 withdrawn from ATMs. If you pay the purchase balance in full and transfer money to clear the cash withdrawals within a few days of using the ATMs, you may only pay a small amount of interest, potentially a couple of pounds depending on your APR and timing. Over several trips a year, the difference compared to a card with 3 percent foreign transaction and cash fees can add up to well over £100.
Now consider a very different pattern: a UK-based traveller who only leaves the country once every year or two but books a lot of domestic flights, trains and hotel stays in pounds. For this person, NatWest Travel Reward can be more compelling. The card still earns 1 percent on many qualifying travel purchases even when the transactions are in sterling and made with UK companies, and 0.1 percent on other everyday spending. If you often spend £200 to £300 a month on UK train tickets, domestic hotels or car hire, those rewards will accrue steadily even if you rarely use the card abroad.
Managing Cash Withdrawals Abroad Without Nasty Surprises
Cash withdrawals are where the two cards differ most in practice, and getting this wrong can be expensive. NatWest’s Travel Reward Credit Card operates like most standard UK credit cards for cash advances. If you take money out of an ATM abroad with the card, a cash fee of around 3 percent (subject to a minimum amount) is charged and interest accrues immediately on the cash portion of your balance. Even one or two cash withdrawals per trip can erode the financial benefit of having a no-foreign-transaction-fee card for purchases.
For example, if you withdraw the equivalent of £200 in cash from an ATM in New York with the NatWest card, a 3 percent fee would be about £6 straight away. If your cash interest rate were around 30 percent APR and you did not get around to repaying that part of the balance for a full month, the interest on top of the fee might be a further few pounds. That quickly turns your “fee-free” card spending into a noticeably more expensive way to access dollars, compared with using a specialist travel debit card or a card like Halifax Clarity managed carefully.
Halifax Clarity’s approach is more forgiving for travellers who need cash, provided they are disciplined. There is no Halifax cash fee on foreign currency withdrawals overseas, so the main cost is the interest that starts immediately on the cash amount. Suppose you are in Lisbon and withdraw the equivalent of £200 using Halifax Clarity, then log into your online banking the next day and make a payment of £200 to the card. You would only pay one day of interest on that £200 at your cash rate, which could be less than a pound. If you wait until your monthly statement is due before paying, the interest will be higher and can eat up much of the saving you gained from avoiding a cash fee.
Experienced users of Halifax Clarity often treat it as a tool specifically for card purchases abroad and only make occasional ATM withdrawals where cash is truly necessary, such as in countries where card acceptance is still limited. They then pay those cash amounts off as soon as possible, sometimes making several small payments during a trip using the banking app. This habit keeps interest charges low and preserves the benefit of fee-free ATM withdrawals.
Eligibility, Credit Profile and Practical Application Tips
Both NatWest and Halifax assess applications based on your credit history, income and overall financial position. NatWest’s Travel Reward Credit Card is open to UK residents over 18 who meet its minimum income and credit criteria. Existing NatWest current account customers may find the application journey smoother, but non-customers can also apply. Because the card offers rewards and no foreign purchase fees, NatWest will still perform a full credit check and may offer a higher APR or lower credit limit to applicants with weaker credit profiles.
Halifax Clarity is also a mainstream UK credit card rather than a niche product. You do not necessarily need a Halifax current account to apply, but having an existing relationship can help. As with NatWest, eligibility tools on the Halifax site let you check your likelihood of approval with only a soft search before you commit to a full application. Travellers who are newer to credit or who have had past issues may be offered a lower initial limit and a higher APR, which matters more if they are likely to carry a balance.
In terms of day-to-day use, both cards can be added to mobile wallets and managed through their respective banking apps. For a practical travel setup, some UK travellers keep their main “everyday” credit card for domestic spending, then add either NatWest Travel Reward or Halifax Clarity specifically for overseas trips. Before travelling, they check their available credit, ensure the card is activated and that contact details in the banking app are up to date, so any fraud alerts or security checks can be resolved quickly while abroad.
It is also wise to travel with a backup. Many travellers pair a no-foreign-fee credit card with a specialist travel debit card or app-based account. For example, a Halifax Clarity card might be used for hotels, car hire deposits and larger restaurant bills, while a separate debit card with fee-free ATM withdrawals covers cash needs. Someone who chooses the NatWest Travel Reward Credit Card might instead withdraw cash using a debit card that has low ATM fees abroad, reserving the credit card for hotel, airline and train purchases to maximise the travel rewards.
Who Should Choose NatWest Travel Reward and Who Should Choose Halifax Clarity?
NatWest Travel Reward Credit Card suits travellers who prioritise earning something back on their spending and who rarely withdraw cash abroad. If most of your trips involve paying by card in places like Western Europe, North America or popular Asian cities where contactless terminals are standard, you can comfortably avoid ATMs and focus on putting hotels, flights and train tickets through the NatWest card. Over time, the 1 percent travel rewards on those purchases can offset parts of your travel budget, especially if you also use the card at partner retailers at home.
By contrast, Halifax Clarity is often the stronger option if you know you will need physical cash or if you travel frequently to destinations where card acceptance is patchy. Backpackers visiting markets in Vietnam, skiing enthusiasts paying for small lifts and snacks in rural Austria, or travellers heading to parts of South America where local taxis insist on cash can all benefit from the ability to take out foreign currency without paying a separate cash fee. As long as you pay down those withdrawals quickly, the interest cost can stay far below what you would pay using many other credit or debit cards.
There are also psychological differences. Some people prefer seeing a reward balance that they can redeem as cash or vouchers, which is where NatWest Travel Reward appeals. Others prefer simply knowing that they have eliminated entire categories of fees from their holiday spending, which is Halifax Clarity’s strength. Neither approach is objectively better, but it does affect how satisfying the card feels to use and how carefully you monitor your account while travelling.
Finally, it is worth being realistic about your own habits. If you tend to forget to make manual payments or to log into your banking app during trips, NatWest Travel Reward may be safer because you are more likely to avoid cash withdrawals and just tap to pay. If you are confident you will clear cash balances on Halifax Clarity within days or are comfortable setting reminders for manual payments, then the card’s ability to deliver cheap foreign cash can outweigh the lack of a formal rewards scheme.
The Takeaway
For UK travellers in 2026, both the NatWest Travel Reward Credit Card and the Halifax Clarity Credit Card can significantly cut the cost of spending abroad compared with standard high street cards that still charge 2 to 3 percent in foreign transaction fees. The right choice depends on how you travel and how disciplined you are with repayments.
If you mainly book flights, hotels and trains, pay by card almost everywhere and like the idea of seeing small travel rewards build up on your statement, the NatWest Travel Reward Credit Card is likely to be the better fit. Its combination of no foreign purchase fees and simple rewards on travel spending works well for city breaks, family holidays in Europe and UK-based travel where you still earn on domestic rail and hotel costs.
If you often find yourself in destinations where cash is still king, or you want one card that can handle both purchases and occasional ATM withdrawals without a separate cash fee, Halifax Clarity remains one of the strongest options on the UK market. Provided you move quickly to clear any cash withdrawals and keep an eye on your balance in the app, it can give you near wholesale exchange rates on both card spending and local currency.
Ultimately, many frequent travellers choose not to decide and hold both: Halifax Clarity for ATM withdrawals and fee-free overseas purchases, and a rewards-focused card such as NatWest Travel Reward for big-ticket travel bookings. Whether you carry one of them or both, understanding exactly how their fees, interest and rewards really work is the key to coming home with memories and photos rather than surprise charges on your statement.
FAQ
Q1. Does the NatWest Travel Reward Credit Card charge foreign transaction fees on purchases abroad?
The NatWest Travel Reward Credit Card does not charge a separate foreign transaction fee on purchases made in a foreign currency abroad, so you pay the card network exchange rate without an extra percentage markup from NatWest on top of that fee structure.
Q2. Does Halifax Clarity really have no fees for ATM withdrawals overseas?
Halifax Clarity does not charge its own cash withdrawal fee for foreign currency ATM withdrawals abroad, although interest on the cash amount starts immediately and the ATM operator in another country can still add its own local charge, which will appear on your statement if it is applied.
Q3. Which card is cheaper for taking out cash on holiday?
In most cases Halifax Clarity is cheaper for taking out cash abroad because there is no Halifax cash fee on foreign currency withdrawals, so if you repay the cash quickly you usually only pay a small amount of interest, while the NatWest Travel Reward Credit Card typically adds a cash advance fee plus interest from the date of withdrawal.
Q4. Which card offers better rewards on travel spending?
The NatWest Travel Reward Credit Card offers explicit rewards on travel-related purchases, such as around 1 percent back in the form of NatWest Rewards on eligible flights, trains and hotels, whereas Halifax Clarity has no traditional rewards scheme and delivers value mainly through saving you foreign transaction and cash withdrawal fees.
Q5. Can I use either card to book flights and hotels in the UK?
Yes, both cards can be used domestically, but the NatWest Travel Reward Credit Card is more attractive for UK-based travel because many flights, train tickets and hotel bookings paid in pounds qualify for its travel rewards, while Halifax Clarity simply treats those as standard purchases without extra rewards.
Q6. What is the main downside of Halifax Clarity for UK travellers?
The main drawback is that cash withdrawals accrue interest from the day you take them out, and there are no formal reward points or cashback on spending, so you must manage repayments closely to keep interest costs low and rely on fee savings rather than visible rewards.
Q7. What is the main downside of the NatWest Travel Reward Credit Card?
The key weakness is that cash withdrawals abroad are treated as cash advances with a separate fee and immediate interest, which can become expensive if you rely on ATMs on holiday, and the rewards rate, while useful, is relatively modest compared with the potential cost of carrying a balance.
Q8. Is it worth holding both NatWest Travel Reward and Halifax Clarity?
For frequent travellers it can be worthwhile to hold both, using NatWest Travel Reward for large travel bookings and everyday card purchases and using Halifax Clarity sparingly for fee-free foreign currency cash withdrawals and backup card spending when you are overseas.
Q9. How should I pay to minimise costs when using these cards abroad?
To keep costs down, always choose to pay in the local currency rather than pounds when offered at card terminals abroad, avoid unnecessary ATM withdrawals on the NatWest card, clear Halifax Clarity cash withdrawals as quickly as possible and aim to pay your statement balance in full every month on either card.
Q10. Are these cards better than using a regular UK debit card abroad?
For many travellers they are better because standard UK debit cards often add foreign transaction fees of around 2 to 3 percent and sometimes extra ATM charges, whereas both NatWest Travel Reward and Halifax Clarity remove foreign purchase fees and can therefore deliver lower overall costs on holiday spending when used carefully.