Travel Money: Cards, Cash and Avoiding Fees Abroad
Paying for things abroad is easy, but hidden fees can add up quickly. Here's which cards to bring, how to get local cash cheaply, why you should always pay in the local currency, and how to keep your money safe while you travel.
By Pond.com editors Updated 4 min read
Quick answer
- Use a credit card with no foreign transaction fees for most purchases. Many cards charge about 3% on every foreign purchase.
- Get local cash from a bank ATM using a debit card with low or no foreign ATM fees, rather than exchanging dollars at airport kiosks.
- When a card machine or ATM offers to charge you in U.S. dollars, say no and pay in the local currency.
- Bring at least two cards, kept in different places, plus a small amount of cash for arrival.
- Contactless and phone payments are widely accepted in many countries, but some places are still cash-only.
Paying for things abroad has never been easier. Cards and phones work almost everywhere, and ATMs are easy to find. But it's also easy to lose 5 to 10% of your spending money to fees and poor exchange rates without noticing. A little preparation keeps more of your money for the trip itself.
Before you go: check your cards
Look up the terms for each card you plan to bring, or call your bank.
| Check | Why it matters |
|---|---|
| Foreign transaction fee | Many cards add about 3% to every purchase abroad |
| Foreign ATM fees (debit card) | Banks may charge a flat fee plus a percentage for each withdrawal |
| Network (Visa, Mastercard, American Express, Discover) | Visa and Mastercard are the most widely accepted abroad |
| Chip and contactless | Most countries expect chip or tap payments |
| PIN for your credit card | Some machines, such as train ticket kiosks, may ask for one |
| Contact details | Make sure your bank can reach you to confirm unusual purchases |
The ideal setup for most travelers is a credit card with no foreign transaction fee for purchases, plus a debit card with low or no foreign ATM fees for cash. Some online and travel-focused banks reimburse ATM fees.
Credit cards that don't add a fee on purchases abroad and don't charge an annual fee.
| Provider | Rewards | Welcome offer | Details |
|---|---|---|---|
| Capital One Quicksilver Cash Rewards, opens in a new tab | 1.5% cash back on everything | $200 after $500 spend | Visit site Capital One Quicksilver Cash Rewards, opens in a new tab |
| Capital One Savor Cash Rewards, opens in a new tab Groceries exclude superstores like Walmart and Target. | 3% dining, entertainment and groceries; 1% other | $200 after $500 spend | Groceries exclude superstores like Walmart and Target. Visit site Capital One Savor Cash Rewards, opens in a new tab |
| Chase Freedom Flex, opens in a new tab The 5% categories change each quarter, need activating and are capped at $1,500 a quarter. | 5% in rotating categories; 3% dining and drugstores; 1% other | $250 after $500 spend | The 5% categories change each quarter, need activating and are capped at $1,500 a quarter. Visit site Chase Freedom Flex, opens in a new tab |
| Fidelity Rewards Visa Signature Card, opens in a new tab Needs a Fidelity account, such as an IRA or HSA, for the full 2%. | 2% cash back into a Fidelity account | None | Needs a Fidelity account, such as an IRA or HSA, for the full 2%. Visit site Fidelity Rewards Visa Signature Card, opens in a new tab |
How we chose these
We included widely available credit cards with no annual fee and no foreign transaction fee, from major US issuers and Fidelity, using each issuer's own website. Cards are listed alphabetically. Visa and Mastercard are accepted almost everywhere abroad; check before relying on any card. Pond.com isn't paid by any card issuer listed here.
Most other cards add about 3% to every purchase made abroad or in a foreign currency online. Interest rates are variable and depend on your credit. Welcome offers need the spending within the first 3 months and change often.
For information only, not a recommendation. Rates and terms change often and may depend on where you live; check the details with the provider before you apply. Pond.com isn't paid by any provider listed here.
Always pay in the local currency
When you pay by card or use an ATM abroad, you may see a screen asking whether you want to be charged in U.S. dollars or in the local currency. This is called dynamic currency conversion, and choosing dollars almost always costs more, sometimes 5% or more, because the merchant or ATM operator sets the exchange rate.
Always choose the local currency (euros, pounds, pesos and so on), and let your card's network do the conversion. If a waiter or shop runs your card in dollars without asking, you can ask them to redo it.
Getting cash
You'll still want some cash for small purchases, tips, markets, public restrooms and places that don't take cards.
- Use bank-owned ATMs, ideally inside or attached to a bank. Standalone ATMs in tourist areas, often run by private operators, tend to have higher fees and push dollar conversion.
- Withdraw larger amounts less often if your bank charges a flat fee per withdrawal, but don't carry more than you're comfortable losing.
- Avoid airport exchange kiosks and hotel exchange desks, which usually offer the worst rates.
- Want cash before you land? Order a small amount from your own bank a week or two before you leave.
- Decline the ATM's conversion offer and choose to be charged in the local currency.
Checking accounts whose debit cards are cheap to use abroad, with no monthly fee.
| Provider | ATM fees abroad | Foreign fee | Details |
|---|---|---|---|
| Capital One 360 Checking, opens in a new tab | No Capital One fee; ATM owner's fee not refunded | None | Visit site Capital One 360 Checking, opens in a new tab |
| Fidelity Cash Management Account, opens in a new tab A brokerage cash account, not a bank account; cash is swept to FDIC-insured program banks. | All ATM fees refunded, worldwide | None | A brokerage cash account, not a bank account; cash is swept to FDIC-insured program banks. Visit site Fidelity Cash Management Account, opens in a new tab |
| Charles Schwab Bank Investor Checking, opens in a new tab Opens with a linked Schwab One brokerage account, which has no minimum. | All ATM fees refunded, worldwide | None | Opens with a linked Schwab One brokerage account, which has no minimum. Visit site Charles Schwab Bank Investor Checking, opens in a new tab |
How we chose these
We included widely available accounts with no monthly fee and no foreign transaction fee on debit card use abroad, using each provider's own website. Accounts are listed alphabetically. Pond.com isn't paid by any provider listed here.
Always choose to be charged in the local currency at ATMs and in shops; letting the machine convert to dollars usually costs more. ATM owners abroad may still show their own fee before you confirm.
For information only, not a recommendation. Rates and terms change often and may depend on where you live; check the details with the provider before you apply. Pond.com isn't paid by any provider listed here.
Paying with your phone
Phone wallets such as Apple Pay and Google Pay work wherever contactless payments are accepted, which includes most shops, restaurants and transit systems in much of Europe, Canada, Australia and large parts of Asia. They use your card's rates and fees. Some trains, buses and smaller businesses, and many places in less card-friendly countries, are still cash-only, so carry some local currency too.
Tipping and taxes
- Tipping customs vary. In much of Europe, service is included and a small tip is a courtesy. In some countries tipping isn't expected at all. Look up the norms before you go.
- Sales taxes are usually included in prices abroad. In some countries, visitors can claim back value-added tax (VAT) on larger purchases. Ask the shop for the tax-free form and follow the steps at the airport.
Keeping your money safe
- Split it up. Keep a backup card and some cash separate from your main wallet, such as in the hotel safe or a hidden pocket.
- Use cards in daylight, at bank ATMs, and cover the keypad when you type your PIN.
- Watch for pickpockets in crowds, on public transport and at busy tourist sights. A cross-body bag that zips closed helps.
- Turn on card alerts in your banking apps, so you see every charge right away.
- Save your bank's international phone numbers in case you need to block a card. The number on the back of the card is often a toll-free number that may not work abroad.
Coming home with leftover cash
Spend coins before you leave, since they usually can't be exchanged. Keep a small amount of banknotes for your next trip, or exchange them at your bank. Selling currency back at the airport usually gets a poor rate.
Common questions
A fee some banks and card issuers charge on purchases made in a foreign currency or processed abroad, often about 3% of each purchase. Many travel credit cards and some debit cards charge no foreign transaction fee, so check your card terms before you go.
Pay in the local currency. When a card machine or ATM offers to charge you in U.S. dollars, it's called dynamic currency conversion, and the exchange rate is usually much worse than your card's own rate.
Usually a bank ATM at your destination, using a debit card with low fees. Currency exchange kiosks at airports and tourist areas tend to have the worst rates. If you want cash before you leave, ask your own bank, which may offer better rates than airport counters.
Many banks no longer require a travel notice because their fraud systems recognize travel, but check your bank's app or website. Make sure your contact details are up to date so you can confirm any flagged purchases.
Enough for the first day, such as taxis, tips and snacks, and keep a small emergency reserve. Get more from ATMs as you need it. If you carry more than $10,000 in cash in or out of the U.S., you must declare it to U.S. Customs and Border Protection.