Spending Abroad: To-Do’s and To-Don’t’s
Managing your money while on the move can be challenging—especially when fees and currency conversion rates come into play. In this handbook, we break down the best debit card options for global travel and share essential financial best practices to help you avoid unnecessary costs and keep your funds safe.
Top Debit Card Options for Travelers
Choosing the right debit card can save you from costly fees and hassle abroad. Here are some standout options for student and budget-conscious travelers:
Charles Schwab High Yield Investor Checking Account
No ATM Fees: This card reimburses any ATM fees you incur worldwide.
No Foreign Transaction Fees: Use your card abroad without extra charges on purchases.
Competitive Exchange Rates: Enjoy market-based exchange rates when converting currency.
Capital One 360 Checking
Fee-Free Transactions: No foreign transaction fees mean more money stays in your pocket.
Extensive ATM Networks: Access thousands of ATMs in the U.S. and abroad without hidden costs.
User-Friendly Mobile App: Keep track of spending in real time with a robust banking app.
Fidelity Cash Management Account
ATM Fee Refunds: Similar to Schwab, Fidelity refunds ATM fees, making it a great option for frequent withdrawals.
No Maintenance Fees: Save money with an account designed for active travelers.
Competitive Conversion Rates: Enjoy fair exchange rates, reducing conversion fee surprises.
Other notable mentions include certain online banks and travel-friendly fintech options that offer low-to-no fees. Always check current terms as these offerings can evolve.
Avoiding Unwanted Fees
International transactions often come with hidden fees. Here are key tips to help you dodge them:
1. Foreign Transaction Fees
Choose the Right Card: Opt for cards that waive foreign transaction fees.
Pay in Local Currency: When using ATMs or making purchases, select the local currency option rather than having the amount converted by your bank, which can incur extra conversion fees.
2. ATM Fees
Use Fee-Free Networks: Stick to ATMs within your card’s partner networks. Cards like those from Charles Schwab and Fidelity reimburse fees if you step outside these networks.
Plan Withdrawals: If possible, withdraw larger sums infrequently to minimize repeated ATM fees. However, balance this with safety considerations.
3. Conversion Fees
Stay Informed: Monitor the current exchange rates to understand what you’re paying for each transaction.
Use Local Currency: As mentioned, always choose to be charged in the local currency at point-of-sale or ATMs to avoid poor conversion rates from dynamic currency conversion services.
How to Safely Carry and Manage Money Abroad
Traveling internationally means keeping your cash and cards secure while ensuring easy access to funds:
Carrying Cash
Diversify Storage: Divide cash between a money belt, a secure travel pouch, and your wallet. Never keep all your cash in one spot.
Limit the Amount: Carry only what you need for daily expenses and emergencies. Avoid large bundles that could attract unwanted attention.
Local Currency Exchange: Consider exchanging a small amount of cash into local currency before you travel for initial expenses (e.g., transportation, meals).
Managing Withdrawals
Know Your Daily Budget: Calculate how much money you might need each day, then withdraw accordingly to avoid carrying too much cash at once.
Monitor ATM Withdrawals: If your card charges fees per transaction, consolidate your withdrawals when possible while ensuring you still have access to funds.
Keep Backup Options: Carry a backup card in a separate location from your primary card. This protects you in case of loss or fraud.
Additional Financial Best Practices When Traveling
Inform Your Bank: Set a travel alert for your card: Let your bank know about your travel plans to avoid unexpected service interruptions.
Point of Sales: When checkout machines prompt you to choose between local currency and USD, it’s best to select the local currency. While paying in your home currency might seem convenient, the conversion rate offered at the point of sale is often less favorable than what your bank provides.
Utilize Mobile Banking: Regularly check your accounts via mobile apps to quickly spot any suspicious transactions.
Research Ahead: Look up ATM locations and bank partnerships in your destination countries to optimize fee-free withdrawals.
Stay Organized: Keep copies of important documents (e.g., card numbers, emergency contacts) stored securely online or in a travel folder.
Final Thoughts
Managing your finances on the road doesn’t have to be stressful. By choosing travel-friendly debit cards like those from Charles Schwab, Capital One 360, or Fidelity, and by following best practices to minimize fees and secure your cash, you can focus on enjoying your adventures—whether you’re exploring the futuristic landscapes of Japan or the modern marvels of the UAE!
