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World Travel 101: Part 4 – Money

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World Travel 101: Part 4 – Money

Million Mile SecretsWorld Travel 101: Part 4 – MoneyMillion Mile Secrets Team

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You’re traveling outside of the US, so how will you pay for your expenses when you arrive at your destination?

Start by notifying your credit card companies before you leave for your trip, so you don’t have trouble using your cards.  You’ll also want some cash in the local currency before you arrive.

World Travel 101: Part 4 Money
But You Could Wind Up Paying a Lot of Fees!

Find out how to avoid foreign transaction, foreign exchange, and ATM fees when traveling abroad!

World Travel 101 – Index

Contact Your Bank Before You Leave

Banks get suspicious when they suddenly see purchases in another country.  To prevent fraud, they’ll decline the charges and put a hold on your account.

World Travel 101: Part 4 Money
It’s No Fun Having Your Card Declined! Let Your Bank Know You’re Traveling So They Don’t Think Someone Else Is Using Your Card

Usually getting this straightened out is as simple as a phone call.  But during high traffic times this could mean a long wait on hold.  And if you’re, for example, purchasing a last-minute train ticket, this could leave you in a bind.

So you can save time and frustration by calling the number on the back of your card ahead of time to let them know you’ll be traveling.

Use a Credit Card for Most Purchases

Folks should use their credit card whenever possible, so they can collect miles & points for their purchases.  Plus you get fraud protection in case your card is stolen or lost (unlike cash!).  But overseas, many cards will charge you a foreign transaction fee between 1% and 3%.

Here are a few cards that do NOT charge a foreign transaction fee:

Note:  Remember to pay in the local currency!  Employees at shops will ask you if you want to pay in US dollars or the local currency.  If you don’t pay in the local currency, even cards that have no foreign transaction fees will charge a foreign exchange fee of ~3%.


It may be useful to bring along a card that has Chip-and-Signature technology.

That’s because we’ve found that vending machines, for things such as bike rentals or train tickets, often don’t accept cards with just a magnetic strip, which is what most cards in the US are.

World Travel 101: Part 4 Money
You Might Need a Chip-Enabled Card to Buy a Train or Subway Ticket in Europe!

Many US banks have switched their cards to Chip-and-Signature.  Cards that currently offer Chip-and-Signature include:

And this will work in most cases.  But there are some places (such as unattended kiosks for bus tickets) that won’t work with anything but a Chip-and-PIN card.  These cards require you to enter a PIN code instead of a signature for verification.

So far, these cards are mostly unavailable in the US, but they should be coming soon!

The Barclaycard Arrival Plus World Elite Mastercard  lets you add a PIN, so it’s a great no-transaction-fee card to use overseas!

Get Some Local Currency Before Your Trip

It’s a good idea to get some local currency (enough to last 1 to 2 days) before you arrive in the country you’re visiting.  Your bank should be able to order the paper money for you.  I called my local Chase bank, and it takes 2 business days to receive the currency.

Emily:   My 1st time traveling outside the US, I didn’t get any local cash (euros) before I left and relied on my debit card to get around.  It was a big mistake!

My friend Kristen and I almost didn’t make it to our hostel in Barcelona because no cab driver would drive us around, and we couldn’t figure out how to use the public transport.  Thankfully, a cab driver eventually took pity on us, but don’t make the same mistake we did!

World Travel 101: Part 4 Money
By Avoiding Money Troubles, You Can See the Sights Sooner!

Avoid Exchanging Cash at the Airport!

When you travel abroad you’re likely to run into places that don’t accept credit cards.  However, converting currency at the airport can be a ripoff.

World Travel 101: Part 4 Money
You’ll Pay a High Premium to Exchange Currency at the Airport!

You’re likely pay a lower fee by exchanging your cash at a local bank.

Charles Schwab High Yield Investor Checking Account

I prefer to use my Charles Schwab High Yield Investor Checking account.  It’s free to sign-up for an account and it comes with some great perks including:

  • NO foreign currency exchange fees
  • NO minimum balance or monthly service fees
  • Reimbursement for any ATM fees

So you can withdraw money in the local currency for free!  And the VISA ATM locator is a great tool!

If you have a Bluebird account, you can withdraw cash from overseas ATMs at a fair exchange rate for $2.50 (plus any fees charged by the ATM operator).

Bottom Line

Before you leave town it’s a good idea to call your bank and let them know you’ll be traveling.  This can save you the time and frustration of having to call the credit card fraud department to verify your purchase.

Whether you’re at home or abroad, I recommend using a miles or points credit card for most of your purchases, so you can be rewarded for your spending.  But not every place accepts credit cards.

If you want money in the local currency, avoid the high service fees at the airport by exchanging cash at a local bank before your trip.  Better yet, sign-up for a free Charles Schwab High Yield Investor Savings Account and you can get cash from ATMs without paying any fees!

Chase Sapphire Preferred® Card

Chase Sapphire Preferred® Card

  • Earn 60,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $750 toward travel when you redeem through Chase Ultimate Rewards®
  • 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 60,000 points are worth $750 toward travel
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.

More Info

Editorial Note: We're the Million Mile Secrets team. And we're proud of our content, opinions and analysis, and of our reader's comments. These haven’t been reviewed, approved or endorsed by any of the airlines, hotels, or credit card issuers which we often write about. And that’s just how we like it! :)

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@ Steve- It depends on your appetite for risk. If you’d rather be extra prepared, then consider getting a small stash of local currency before you leave. Sometimes ATMs can be out of order and having a backup may bring peace of mind.

In my opinion, by all means use the airport (or other) ATMs, you get the best exchange rate this way, but make sure they are actual BANK ATMs (not provate, or money change companies), and note what fee your home bank charges for using other ATMs and do as few transactions (for as much currency) as possible to make the fee relatively less… it’s still a lot cheaper than money changing

@Darius – U.S. Banking is not going towards Chip and Pin (like Europe), they are moving to Chip and Signature which has a lot of security experts up in arms as its less secure. Banks don’t want people to input pins as they are afraid they won’t use their specific cards if they have to. Chip and Signature only cuts down on making counterfeit cards. It does nothing if someone gets access to your account information since a PIN is not required.

In addition to the foreign transaction fee, many cards that are a Visa or MasterCard will also incur a 1% currency conversion fee due to using the Visa/MasterCard payment network.

Some cards that have no foreign transaction fee will still incur the 1% Visa/MasterCard currency conversion fee. So while many no-foreign-transaction-fee cards do eat the Visa/MasterCard 1% currency conversion fee, you’ll probably want to be clear on that before you spend a lot overseas on your card(s).

Save all receipts if using Charles Schwab . Like in Europe, foreign banks do not always break out the atm fees when reporting back to US banks. I lost money on my first European trip.

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