Comparing the two best options for a ‘no FX fees’ credit card

The Lloyds Avios Rewards credit card (representative APR 23.7% variable, including the £24 fee) was a game-changer when it launched in October 2013.  For the first time, we had a credit card which offered NO FOREIGN EXCHANGE FEE – AND gave you Avios points for your spending as well.

Historically, it was almost always a bad idea to use a mileage card for overseas spend.  This is because all other miles and points cards – and indeed almost all other UK credit and debit cards – charge a foreign exchange fee of 2.99%.

I want to use this post to compare the Lloyds Avios Rewards card with the The Post Office Money Platinum Credit Card (representative APR 17.8% variable, issued by Bank of Ireland UK).  This is one of the few free credit cards to charge no foreign exchange fees on purchases.

How do the two cards compare?

 The Post Office Money Platinum Credit Card stacks up like this:

no annual fee

0% charge on foreign purchases

2.5% fee (min £3) when you withdraw cash abroad

no rewards programme

no sign-up bonus

comes as a Mastercard

The Lloyds Avios Rewards credit card stacks up like this:

£24 annual fee

0% charge on foreign purchases

3% fee when you withdraw cash abroad

1.25 Avios per £1 spent on the American Express card and 0.25 Avios per £1 spent on the Mastercard

4,500 Avios points sign-up bonus if you are referred by fellow cardholder – email me at rob at headforpoints.com if you would like a referral link

comes as a double pack of American Express and Mastercard

Which card is better for you?

Which card works best for you is purely down to how much money you think you will spend abroad in a year, and how much you value an Avios point at.

Let’s assume you value an Avios at 1p.

The fee on the Lloyds card is £24 per year whilst the Post Office card is free.

The Lloyds Avios Rewards card is therefore a better deal if you will earn more than 2,400 Avios per year from foreign spending based on a 1p per Avios valuation.  This would require spending something between £2,000 (if 100% of your spend was on the Amex) and £9,600 (if 100% of your spend was on the Mastercard) per year.

If you do not think you will spend this much on your credit card abroad each year, you should go with the Post Office Money Platinum Mastercard instead.

The Post Office card is also a better deal if you simply don’t want to spend any ‘real’ money chasing more Avios points at the moment.

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Want to earn more points from credit cards? – April 2025 update

If you are looking to apply for a new credit card, here are our top recommendations based on the current sign-up bonuses.

In 2022, Barclaycard launched two exciting new Barclaycard Avios Mastercard cards with a bonus of up to 25,000 Avios. You can apply here.

You qualify for the bonus on these cards even if you have a British Airways American Express card:

Barclaycard Avios Plus Mastercard

Get 25,000 Avios for signing up and an upgrade voucher at £10,000 Read our full review

Barclaycard Avios Mastercard

Get 5,000 Avios for signing up and an upgrade voucher at £20,000 Read our full review

You can see our full directory of all UK cards which earn airline or hotel points here. Here are the best of the other deals currently available.

SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on the ‘free for a year’ American Express Preferred Rewards Gold card is increased from 20,000 Membership Rewards points to 30,000 points. Points convert 1:1 into Avios (30,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

SPECIAL OFFER: Until 27th May 2025, the sign-up bonus on American Express Platinum is increased from 50,000 Membership Rewards points to a huge 80,000 points. Points convert 1:1 into Avios (80,000 Avios!) and many other programmes. Some people may see even higher personalised offers. Click here to apply.

American Express Preferred Rewards Gold

Your best beginner’s card – 30,000 points, FREE for a year & four airport lounge passes Read our full review

British Airways American Express Premium Plus

30,000 Avios and the famous annual 2-4-1 voucher Read our full review

The Platinum Card from American Express

80,000 bonus points and great travel benefits – for a large fee Read our full review

Virgin Atlantic Reward+ Mastercard

18,000 bonus points and 1.5 points for every £1 you spend Read our full review

Earning miles and points from small business cards

If you are a sole trader or run a small company, you may also want to check out these offers:

American Express Business Platinum

50,000 points when you sign-up and an annual £200 Amex Travel credit Read our full review

American Express Business Gold

20,000 points sign-up bonus and FREE for a year Read our full review

Capital on Tap Pro Visa

10,500 points (=10,500 Avios) plus good benefits Read our full review

Capital on Tap Visa

NO annual fee, NO FX fees and points worth 1 Avios per £1 Read our full review

British Airways American Express Accelerating Business

30,000 Avios sign-up bonus – plus annual bonuses of up to 30,000 Avios Read our full review