How to Avoid Credit Card and ATM Fees While Traveling Abroad

With the prevalence of ATMs and internationally accepted credit cards, it is becoming increasingly easier to travel without having to exchange large sums of money. But without proper preparation, these transactions can have expensive fees that quickly add up. Learn how to avoid paying unnecessary fees and have more money to spend enjoying your vacation.

Difficulty: Easy

Instructions

1. 

   Call your credit card and debit card companies before traveling abroad. If you neglect to do so, certain companies may freeze your account until they can confirm that your foreign transactions are legitimate.

2. 

   Consider exchanging some money before you leave. Your bank may be able to help with this and will most likely have a much better exchange rate than an airport kiosk or other tourist-targeting change bureau, so research rates before buying foreign currency.

3. 

   Do you have a Bank of America account? If so, use one of their partner banks’ ATMs abroad and you will not be charged any fees on your withdrawal. The banks to look for are Westpac (Australia and New Zealand), Scotia Bank (Canada), China Construction Bank (China), Barclay’s (UK), BNP Paribas (France), Deutsche Bank (Germany), Santander Serfin (Mexico)

4. 

   Consider using a Capital One credit card for larger purchases abroad. Unlike most other credit card companies, which charge anywhere from one to three percent per transaction, Capital One has no fees internationally. Instead, if you opt for their rewards card and earn 1% cash back, you’ll actually be saving one percent rather than wasting it on other companies’ fees.

5. 

   If you are not a Bank of America card, find out whether your bank offers you a certain number of free withdrawals from other out-of-network banks abroad.

6. 

   If you cannot find a partner bank’s ATM or are not a Bank of America customer, you may still withdraw money from ATMs abroad, but these may be subject to fees on both ends. To minimize these fees, make sure to withdraw a sufficiently large amount of money to avoid being hit with multiple transaction charges.

Tips & Warnings

• Always have a small amount of local currency with you before you leave, just in case.
• European credit cards rely on a "chip-and-pin" system that US cards do not have. You can typically pay most places by asking them to swipe your card, but in self-service kiosks, your card may not work.

Resources

• Bank of America's Partner Institutions Abroad
• Capital One Credit Cards

[nickmgray]

on 2/7/2009 I've had to use my card a few times while in Europe, Even if the bank does charge you a fee, it's typically better than the fee charged by the little currency exchange places you find. Great tips!

[jseven]

on 1/27/2009 This is valuable advice! 5*

[kaytay]

on 1/27/2009 Great ATM advice. 5 stars

[CCrock]

on 1/26/2009 This is really good to know! Thanks!

[kimarkent]

on 1/25/2009 You have a wealth of knowledge! So good to read your articles!! 5* RRRing!