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Traveling abroad is exciting, but exchange rates and foreign transaction fees can quickly drain your wallet without you even realizing it. And who wants that? Here are eight helpful tips for keeping more of your hard-earned money in your pocket while traveling overseas.
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Get a Credit Card With No Foreign Transaction Fees
It is easy to find credit cards that don't charge foreign transaction fees. If your credit card doesn't waive foreign transaction fees, you could pay 3% extra (or sometimes more) on all of your purchases. No thank you!
One of our favorite cards to travel with is the Chase Sapphire Preferred® Card (Rates & Fees) because it has no foreign transaction fees plus chip and signature technology. Some other cards we love that offer no foreign transaction fees include:
- Capital One Venture Rewards Credit Card
- Capital One Venture X Rewards Credit Card
- Chase Sapphire Reserve®- Rates & Fees
- The Platinum Card® from American Express - Rates & Fees
- American Express® Gold Card - Rates & Fees
- The New United℠ Explorer Card- Rates & Fees

- 5X points on Lyft rides through September 2027
- 5X points on travel purchased through Chase Travel℠
- 3X points on dining at restaurants worldwide
- 3X points on eligible streaming services
- 3X points on online grocery purchases (excluding Target, Walmart, and wholesale clubs)
- 2X points on all other travel
- 1X point per dollar spent on all other purchases

- 10X miles per $1 on hotels and rental cars booked via Capital One Travel
- 5X miles per $1 on purchases through Capital One Entertainment (through 12/31/2025)
- 5X miles per $1 on flights when booking via Capital One Travel
- 5X miles per $1 on vacation rentals booked via Capital One Travel
- 2X miles per $1 on all other eligible purchases

(Terms apply)
- 4X Membership Rewards® Points at restaurants worldwide, plus takeout and delivery in the U.S. (on up to $50,000 per year in purchases, then 1X)
- 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X)
- 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com
- 2X Membership Rewards® points on prepaid hotels and other eligible travel booked on amextravel.com
- 1X on other eligible purchases
Some places in Europe, Canada, and Asia will only accept credit cards with smart chip technology. Although chip and PIN have become the standard, most places will still accept a chip and signature card.
Tip: If you travel with credit cards, write down the issuers' contact phone numbers in case they are misplaced or stolen. I always bring a backup card, too. You don't want to be stuck without a way to pay for things.
Get a Debit Card With No Fees for International Withdrawals
Having a debit card along with your credit card is a good idea when traveling abroad. This way, you can withdraw cash at an ATM for places that are cash-only or won't accept your credit card. Who wants to pay a fee to access their own money?
Most debit cards will charge you two kinds of international fees: ATM withdrawal fees & POS (“point of sale” foreign transaction) fees. The ATM fee is flat, usually anywhere from $2–$5 per withdrawal. The foreign transaction fee ranges from 1%–3% of the total withdrawal amount, depending on the bank. Many debit cards will charge you both of these fees for using an ATM in another country. Yuck!
Checking account/ATM card options
Thankfully, there are multiple options for debit cards that either don't charge fees or reimburse you for some or all of the charges. Hands down, our favorite option is the Charles Schwab Investor Checking debit card. This account requires no account minimums, charges no foreign transaction fees, and offers unlimited reimbursement on ATM fees.
In addition to that, here's a list of some of the most popular and easily accessible options:
- Betterment: Betterment Checking members have their foreign transaction and ATM fees reimbursed.
- Capital One: 360 Checking members do not have to pay fees of any kind.
- Charles Schwab:
- The Charles Schwab Bank Visa® Platinum Debit Card offers unlimited ATM fee rebates.
- Chase:
- Sapphire Checking members do not incur any withdrawal or foreign transaction fees, including ones charged by ATMs issuers. If a charge occurs, Chase will refund the amount.
- Premier Plus Checking members will incur a 3% foreign transaction fee, but the flat $5 withdrawal fee will be refunded up to four times per statement period.
- Fidelity: Cash Management account holders will incur a 1% foreign transaction fee but receive unlimited ATM fee reimbursement.
- Wells Fargo:
- Prime Checking account members will be reimbursed once per period for ATM fees and will incur a 3% foreign transaction fee.
- Premier Checking account members will be reimbursed for an unlimited amount of ATM fees and will not pay any foreign transaction fees.

Don't Convert Money at the Airport
Airports are one of the most expensive places to exchange your money. Not only will you get a marked-up currency exchange rate, but you might also get hit with a service fee. These counters often charge a much higher rate than the official inter-bank rate, which is how they turn a profit. In the worst case, you’re likely better off paying a foreign transaction fee on a credit card than losing money at these exchange counters. Their fees usually exceed the 3% you might pay.
Depending on where you convert money, the shops may advise you that exchanging more than a certain amount will lead to waived fees. Don't do it! You're still getting a terrible exchange rate, even if you avoid the fees involved.
So what should you do instead? Try finding an ATM. If you can't or it won't accept your card for some reason, exchange a small amount at the airport so you have enough cash on hand for a taxi or other expenses. Be careful because these shops prey on your jet lag to talk you into poor exchange deals.

Don't Let Merchants Do Currency Conversions for You
Another way to save money is to always pay in the local currency. For example, when you check out of your hotel, and the clerk asks if you'd like to pay in U.S. dollars, just say no. This is called “Dynamic Currency Conversion,” and you want to avoid it!
The exchange rate given in this case is terrible. Furthermore, you may end up paying foreign transaction fees on your credit card (even if you selected “pay in dollars”) since some card issuers base their fees on where the transaction occurs, not what currency was used.
Instead, always choose to pay in the local currency. Your bank will do the conversion on their end, giving you a much better conversion rate and avoiding any fees associated with the transaction. If you want to see how much you'll pay in your home currency, use an app like Xe Currency Converter to check the price. The calculator on iPhones was recently updated to include a currency conversion button, so this is another easy option.

Use an eSIM
Over the past few years, using an eSIM (embedded SIM card) has become a cheap and easy way to stay connected while traveling abroad, allowing users to connect to mobile networks without needing a physical SIM card in their phone. Many phone carriers offer international plans that can cost upward of $10 a day. Even with a company like T-Mobile, which offers free international data and texting with many of their plans, you're limited to a certain amount per billing cycle before paying.
With an eSIM, you can choose the best plan for your travel time and required data. It's also easy to adjust if necessary. We wrote a post reviewing the best eSIM options for travelers to help you decide which might be best for you.
Curb Your Spending
Sticking to a budget while on vacation can be challenging, but it’s key to avoiding impulse spending and keeping your finances in check. Using a budgeting app like TravelSpend can be very helpful in this situation. Set a trip budget and add expenses as you go. Additionally, this app lets you analyze your spending categories to help you stay on track. You also can share your trip budget with friends or family. This way, you can track all expenses in one place.

Get Lost
Wander off the beaten path while you're traveling. Many touristy spots are expensive, meaning the adjacent shops, restaurants, and hotels will cost you more money. Furthermore, those main areas don't always have the best food or the highest quality souvenirs. They're just intended to grab tourists' attention. Plus, there's nothing like getting lost in a foreign city with friends or family and enjoying local spots rarely visited by tourists.
Use Rewards Points and Miles
Flights and hotels are expensive — especially when you're traveling overseas. You can save on these purchases if you use rewards miles, points, or cash back. Strategically opening credit cards and maximizing your spending on those cards allows you to earn a lot of points. In turn, you can use those points to book heavily discounted travel.
If you're new to award travel, we have a plethora of articles teaching you how to use points and miles. Check these out:
- Start Here for Collecting Points and Miles for Free Travel
- Achieve Your Travel Goals With Points and Miles
- Beginner's Guide to Award Travel Planning — Award Flights
- Back to Basics: An Introduction to the Types of Reward Points
- How Does a Credit Card Sign-Up Bonus Work?
- Beginner's Guide to Airline Alliances and Partnerships
- How Many Miles Do You Need for a Free Flight?
- A Beginner's Guide to Building a Credit Card Application Strategy
Conclusion
It's easy to overspend while traveling. However, there are ways to prevent it. Stick to your budget, have a credit card and ATM card with no foreign transaction fees, know where to exchange money, and know how to use rewards points. These things allow you to keep your costs in check and fully enjoy your trip while saving money while traveling internationally.
For rates and fees of the cards mentioned in this post, please visit the following links: Chase Sapphire Preferred® Card (Rates & Fees), Chase Sapphire Reserve® (Rates & Fees), The Platinum Card® from American Express (Rates & Fees), American Express® Gold Card (Rates & Fees), and The New United℠ Explorer Card (Rates & Fees)
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