No one wants to deal with hidden fees, especially not on a long trip overseas. Foreign transaction fees, or surcharges that travelers often pay on overseas purchases can be a real pain. While many of these fees are only 1 to 3% of the spending, this can add up quickly between paying for accommodations, meals, transportation, or any other daily necessities.
The relief of knowing that foreign transaction fees can be avoided is empowering. Here are our favorite tips for taking control of your finances and avoiding these unnecessary fees on your next big trip.
Use a Multi-Currency Debit Card
A “no foreign transaction fee debit card” is exactly what it sounds like. These debit cards allow users to spend money in foreign countries without paying the typical fees. Many banks offer no foreign transaction fee debit cards, but they have their own eligibility requirements, such as minimum balances or limits on overseas wiring.
The Wise Multi-Currency Card is the perfect backup bank card for any traveler looking to avoid hidden costs. It allows users to spend in 40 different currencies, send money abroad, and avoid hidden fees. The best part is that it offers more favorable exchange rates and is free to sign up and use.
Sign up For the Right Credit Card
Applying for a credit card that doesn’t charge transaction fees allows travelers to swipe away without worrying about the costs. However, there are many options when it comes to signing up for the “right” credit card, and it all just depends on what you (not the general you, you!) will get the most out of.
For example, travelers who are loyal to a particular carrier might prefer credit cards partnered with that airline. Chase is a transfer partner of United Airlines, and American Express is a transfer partner of Delta. Others may prioritize welcome bonuses, rewards categories, or an airport lounge membership.
There are many schools of thought about what makes one credit card better than another, but all travelers should double-check that their card doesn’t charge foreign transaction fees.
Exchange Your Money Before Your Trip
Whether you’re using it for taxis or local restaurants, carrying some cash while traveling is always a good idea. There is always an ATM, but we recommend pulling some U.S. dollars out of the bank before leaving the country. This is an easy way to prepare for your trip and avoid hidden credit card or ATM fees.
In many countries, money exchanges open the door for negotiations, which means you can bargain for a better exchange rate. Look up the most current currency conversions before going to the nearby exchange center, and don’t be afraid to use Google Reviews or check multiple places before converting it.
