Traveling around outside of your country is really expensive as it is but you can always save considerable amount of money on everything including food and hotel accommodations.
While traveling can certainly drain your wallet, especially in case your budget is unplanned beforehand, it does not necessarily have to be expensive.
The best way to cut down expense when in a foreign country is to avoid international transaction fee. You can easily save 1-3% on all foreign transactions by following the tips mentioned below.
In this article, we aim to highlight a number of ways in which you can dodge international ATM fee as well as foreign transaction fee. These include:
Use A Credit Card Without a Foreign Transaction Fee
The wisest decision you can make when wanting to avoid additional expense is to cut the cord altogether. Using a credit card that doesn’t charge you when you make purchases abroad should be the first thing you should do. These credit cards aren’t only a holy grail for travelers, you can save a lot of money by using them even when you’re not traveling.
Switch to a Bank Account That Won’t Charge You A Foreign Transaction Fee
Getting a bill on your debit card for foreign transactions is also an issue when purchasing things overseas. If you’re are frequent traveler, the amount of fee you will have to pay each time you fly out can add up to a really fat amount, hence giving your pocket a hard blow. Switch to an account that won’t penalize you when you use it out of your country.
Find Out If Your Bank Has a Foreign Alliance
You’re lucky if your bank has a foreign partner in the country you’re traveling to. It can save you loads of bucks when withdrawing money from a financial institution your bank has a foreign alliance with. If it doesn’t, we suggest you to open a new account in a bank that does and use it to get your transaction fee waived when traveling.
Exchange Currency Before You Fly
Most people get their currency exchanged after they have landed abroad which might not be the greatest idea. Try to plan things out and stick to it. Draft out an estimated budget and get your money converted before you leave your country in order to avoid paying extra money on foreign transactions.
Your bank may sell you foreign currency that won’t require you to pay extra charges which is proven a lot more convenient for overseas travelers. Getting excess to foreign funds and availing reasonable exchange rates can affect you drastically in the long term.
Avoid Using Foreign ATMs Or Banks
Some banks tend to charge you with additional fee if you access your account via an out-of-network machine. This could lead you to having lost a generous amount of cash, each time you use an ATM abroad. Now, you cannot avoid using an ATM when overseas completely but you can always minimize the number of times you withdraw any cash. Get an estimated amount of cash you might need in one go. That way, you’ll just have to pay the additional transaction fee once.
Indeed, all the credit card and foreign bank fees can be a source of great pain and hassle. In case you plan to use your credit cards to pay for various tourism activities and souvenirs while traveling, try to look for ways to avoid the extra transaction fees.
Check out bankrate website for the latest updated fees from major credit card companies in the U.S.
The above-mentioned tips will provide you a basis for planning your trip on a budget, allowing you to save as much as a couple hundred dollars in transaction costs.