One of the headaches of traveling internationally is figuring out the least expensive way to make payments in foreign currency. Here are the most common options for accessing your money abroad and the fees you should know about.
Credit cards
Credit cards are one of the safest options abroad because you have zero liability if your card is lost or stolen. Plus, Visa and MasterCard have massive global acceptance.
The downside is that many credit cards charge a foreign transaction fees on every transaction made in foreign currency, often as high as 3%. An increasing number of credit cards no longer have this fee, but many still do. Read the fee schedule for your card carefully.
Debit cards
Most debit cards also have
, and they don't offer the same financial protections, so they have fewer advantages than credit cards. On top of that, most debit cards also charge a fee of several dollars, sometimes as much as $5, for withdrawing foreign currency at ATMs. Even worse, some banks charge you with a foreign transaction fee and ATM fee for withdrawing cash.
Some issuers, such as Bank of America, have partnerships with international banks that let you use their ATMs for free. Ask your bank if they have any such partnerships. If not, keep your withdrawals to a minimum, or apply for an account that doesn't have these fees (Capital One 360 is one of the few).
Prepaid travel cards
Visa and MasterCard offer prepaid travel cards in the currency of your choice, as do some third-party companies like Travelex. It's free to make purchases, so there are no foreign transaction fees to worry about. But expect to pay an ATM fee of several dollars for cash withdrawals. Some prepaid travel cards also tack on fees for buying the card, reloading money and even for inactivity.
Cash in foreign currency
Cash is still accepted almost everywhere. But don't get suckered into
at the airport or tourist traps, where you're likely to get hit with hidden fees and poor exchange rates. Before you travel, order cash from a major bank. Not only will you get the best exchange rates, but you also will probably only be charged a small delivery fee if you're a customer. Some customers may even get the fee waived. If you don't have accounts there, you may have to pay a small service fee.
Travelers checks
Once a tried-and-true way for spending abroad, travelers checks (or cheques) are past their prime. They aren't accepted by all merchants, you may pay a service fee of 1% to 3% to buy them and some businesses charge a fee for accepting or cashing them. The benefit is you'll be reimbursed if they are lost or stolen, but savvy travelers no longer find them worth the fees and trouble.
Emily Starbuck Crone is a staff writer at NerdWallet, a personal finance website. Email: emily.crone@nerdwallet.com. Twitter: @emstarbuck.
Our 2024 Coverage Needs You
It's Another Trump-Biden Showdown — And We Need Your Help
The Future Of Democracy Is At Stake
Our 2024 Coverage Needs You
Your Loyalty Means The World To Us
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
The 2024 election is heating up, and women's rights, health care, voting rights, and the very future of democracy are all at stake. Donald Trump will face Joe Biden in the most consequential vote of our time. And HuffPost will be there, covering every twist and turn. America's future hangs in the balance. Would you consider contributing to support our journalism and keep it free for all during this critical season?
HuffPost believes news should be accessible to everyone, regardless of their ability to pay for it. We rely on readers like you to help fund our work. Any contribution you can make — even as little as $2 — goes directly toward supporting the impactful journalism that we will continue to produce this year. Thank you for being part of our story.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
It's official: Donald Trump will face Joe Biden this fall in the presidential election. As we face the most consequential presidential election of our time, HuffPost is committed to bringing you up-to-date, accurate news about the 2024 race. While other outlets have retreated behind paywalls, you can trust our news will stay free.
But we can't do it without your help. Reader funding is one of the key ways we support our newsroom. Would you consider making a donation to help fund our news during this critical time? Your contributions are vital to supporting a free press.
Contribute as little as $2 to keep our journalism free and accessible to all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
As Americans head to the polls in 2024, the very future of our country is at stake. At HuffPost, we believe that a free press is critical to creating well-informed voters. That's why our journalism is free for everyone, even though other newsrooms retreat behind expensive paywalls.
Our journalists will continue to cover the twists and turns during this historic presidential election. With your help, we'll bring you hard-hitting investigations, well-researched analysis and timely takes you can't find elsewhere. Reporting in this current political climate is a responsibility we do not take lightly, and we thank you for your support.
Contribute as little as $2 to keep our news free for all.
Can't afford to donate? Support HuffPost by creating a free account and log in while you read.
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. Would you consider becoming a regular HuffPost contributor?
Dear HuffPost Reader
Thank you for your past contribution to HuffPost. We are sincerely grateful for readers like you who help us ensure that we can keep our journalism free for everyone.
The stakes are high this year, and our 2024 coverage could use continued support. If circumstances have changed since you last contributed, we hope you'll consider contributing to HuffPost once more.
Support HuffPostAlready contributed? Log in to hide these messages.