How to Save Money While Traveling Internationally: Tips to Keep It Simple and Stress-Free
Get a Credit Card With No Foreign Transaction Fees
Traveling abroad can be exciting, but no one wants to pay extra fees while exploring the world. Luckily, finding a credit card that doesn’t charge foreign transaction fees is easy. Without one, you could be spending 3% or more on every purchase!
One of the best cards for travel is the Chase Sapphire Preferred® Card, which not only waives foreign transaction fees but also features chip and signature technology.
In many places like Europe, Canada, and Asia, credit cards with smart chip technology are a must. While chip and PIN cards are becoming standard, chip and signature cards are still widely accepted.
A pro tip: jot down your credit card issuers’ contact numbers in case your cards are lost or stolen. And always bring a backup card—it’s better to have it and not need it than to be stuck without a way to pay.
Carry a Debit Card With No Fees for International Withdrawals
Pair your credit card with a debit card for added flexibility. Debit cards let you withdraw cash at ATMs, which is helpful for cash-only spots or places that don’t accept credit cards.
Most debit cards come with two types of international fees:
- ATM withdrawal fees – typically $2–$5 per transaction.
- Foreign transaction fees – ranging from 1%–3% of your withdrawal amount.
Some banks charge both, but you can avoid these fees with certain travel-friendly debit cards. Do your research before you go!
Skip the Currency Exchange Counters at Airports
Airports may be convenient, but they’re one of the worst places to exchange money. Exchange counters mark up rates and often tack on service fees. The result? You’re losing more money than you would by using a credit card with foreign transaction fees.
If you need cash immediately, exchange only a small amount at the airport—just enough for transportation or small purchases. Better yet, find an ATM for a more favorable rate. Be mindful of pushy sales tactics that prey on tired travelers.
Always Pay in Local Currency
When a merchant asks if you want to pay in your home currency (like U.S. dollars), politely decline. This is known as “Dynamic Currency Conversion,” and it’s rarely in your favor.
The exchange rates offered through this service are usually poor, and your credit card issuer may still charge foreign transaction fees based on where the purchase occurred.
Instead, opt to pay in the local currency. Your bank will handle the conversion, often at a better rate with fewer fees. Want to double-check the cost in your home currency? Apps like Xe Currency Converter or even the currency feature on your iPhone calculator make it simple.
Enjoy Your Trip Without Overspending
Traveling should be fun, not stressful. With a little preparation, you can save money and stay within your budget. Here’s a quick recap:
- Use a credit card and debit card with no foreign transaction fees.
- Avoid airport currency exchange counters.
- Always pay in the local currency.
These tips will help you keep more money in your pocket while enjoying your adventures to the fullest.
