Travelling can really be spontaneous that we don’t have a chance to carry enough cash with us. When this happens, we either resort to our credit card or our ATM. However, getting money from a foreign ATM can incur a lot of fees, as you will need to consider the exchange rate and convenience fee.
How can we avoid these high bank fees when we travel? Here are some tips:
1) Make sure your bank is recognized globally.
- When choosing a bank, make sure that it is in the Global ATM Network. This is a network of large banks that have come together and waived fees and allow for free ATM withdrawals. While they have the highest fees ($5 USD per withdrawal) for banks outside their network, by using partner ATMs you can avoid ATM charges.
2) Make sure you credit card has a promotion when you are overseas.
- Most credit cards charge a 3% fee on foreign purchases. This can add up because we usually use our credit cards when we travel. Make sure your credit card company waives the fees when you’re travelling overseas.
3) Change your money in a money changer in the city.
- It is better to change your money when you reach the city. Money changers in airports can change your money for local currency lower than the actual exchange rate.
4) When charging in your credit card, choose the local currency.
- Make sure to choose the local currency when charging for whatever you buy overseas. Let your credit card company make the conversion and you’ll get a better rate.
5) Lower exchange rate penalties.
- To do this, make sure to use your credit card than getting local money from the ATM. Credit card companies give better rates than your ATM banks.
Travelling should be easy and so should be purchasing things overseas. Follow these tips and worry-less when you travel.