Similarly, i have a flexplus account with nationwide...i get phone insurance, travel insurance, AA cover etc for a monthly fee...possibly £13 a month. There are no fees for using my card abroad...i reckon most if not all banks will have similar accounts
Interestingly i never really know which option to pick when they ask "do you want to pay in Euros or Pounds"...but just saw this on the Nationwide website:
Choosing how to pay
When you make a card transaction in a foreign currency, you'll be asked whether you want to pay in a foreign currency or pounds sterling.
Paying in a foreign currency
If you choose to pay in a foreign currency, Visa will convert your payment into pounds sterling using their
standard Visa exchange rate (opens in a new window). Then, we’ll deduct the amount in pounds sterling from your account.
Paying in pounds sterling
If you choose to pay in pounds sterling, the retailer or cash machine owner will convert your payment. They may also add on additional charges. This will often cost more than paying in the local currency.
So i "think" this is suggesting you should pay in the local currency??