Travel Tips

Travel Money Tips: How to Avoid Foreign Transaction and ATM Fees Abroad

August 31, 2026 4 min read

You can plan the perfect budget trip and still lose a surprising amount of money to fees you barely notice: a few percent on every card payment, a flat charge at every ATM, and a poor exchange rate at the airport. These travel money tips help you keep more of your money for the trip itself.

Understand the Fees You’re Up Against

  • Foreign transaction fees: A percentage some banks charge on purchases made in a foreign currency, often around a few percent.
  • ATM fees: Your bank may charge for withdrawals abroad, and the ATM operator may add its own fee.
  • Exchange rate markups: The rate you get may be worse than the mid-market rate, which is where hidden costs often live.
  • Dynamic currency conversion: When a merchant offers to charge you in your home currency, usually with a worse rate.

Before You Go

1. Get a card with no foreign transaction fees

Many credit cards and some debit cards don’t charge foreign transaction fees. Using one for everyday purchases can save a meaningful amount over a trip.

2. Get a low-fee debit card for cash

Look for a debit card or account that doesn’t charge for international ATM withdrawals, or that reimburses ATM fees.

3. Carry two cards, ideally on different networks

Not every merchant accepts every card network, and cards can be blocked or lost. Keep the backup card stored separately.

4. Check your bank’s travel requirements

Some banks want to know you’re traveling; others use automatic fraud detection. Make sure your contact details are up to date and your banking app works abroad.

5. Know the rough exchange rate

Know roughly what the local currency is worth so you can spot bad rates and keep track of spending.

While You’re Traveling

6. Always choose to pay in local currency

When a card machine or ATM asks if you want to be charged in your home currency, decline and choose the local currency. This avoids dynamic currency conversion, which usually comes with a worse rate.

7. Avoid airport and tourist-area exchange booths

They often have poor rates or high fees. If you need cash on arrival, an ATM at the airport is usually a better choice. More scams to watch for in how to avoid tourist traps.

8. Withdraw larger amounts, less often

If your bank or the ATM charges a flat fee per withdrawal, fewer, larger withdrawals reduce costs. Balance this with safety, and don’t carry more cash than you need.

9. Use bank-affiliated ATMs

ATMs inside or attached to banks tend to be safer and less likely to have hidden fees or card skimmers.

10. Decline the ATM’s conversion offer

Like card machines, some ATMs offer to convert to your home currency. Decline, and let your bank do the conversion.

11. Keep some local cash

Even in card-heavy countries, small cash amounts help for markets, tips, small cafés, and transport.

12. Track your spending

Fees and small purchases add up. A daily budget makes it easier to stay on track. Our travel budget planner shows you how to set one.

Keeping Your Money Safe

  • Split cash and cards between different places.
  • Use a cross-body bag with zips in crowded areas.
  • Be alert at ATMs. Cover the keypad and check for anything unusual attached to the machine.
  • Know how to freeze your card in your banking app.
  • Keep your bank’s international phone number saved.

For more safety advice, read our solo female travel safety tips, which are useful for everyone. And make sure your travel insurance covers theft.

Frequently Asked Questions

Is it better to use cash or card abroad?

A no-foreign-transaction-fee card is usually the best value for most purchases, with a little local cash for places that don’t take cards.

Should I exchange money before I travel?

Usually it’s not necessary. Withdrawing local currency from an ATM on arrival with a low-fee card often gives you a better rate. If you’d feel more comfortable with some cash on landing, order a small amount from your bank in advance.

What is dynamic currency conversion?

It’s when a merchant or ATM offers to charge you in your home currency instead of the local one. It’s convenient, but usually comes with a worse exchange rate. Choose local currency instead.

Keep More of Your Money for the Trip

With the right cards and a few simple habits, you can avoid most travel money fees. That money is far better spent on a great meal or a memorable experience. For more ways to save, read our complete guide on how to travel on a budget.