As I said above though, I've got a post office credit card, as there's no Foreign exchange fees.
Apart from Nationwide, all other banks slap on a 2.5% handling charge when converting the bill into pounds on your statement.
Also, there's a 3 month 0% on purchases, so I've got from April to July to pay the holiday costs off.
Fraud is a risk, but I think you're as likely to have a card cloned by a dodgy employee at a petrol station / restaurant / store as you are abroad.
Only tip I'd give, is ring your card company first and tell them when you're going away. If the card is used outside of these dates, they know it wasn't you.