Don't Let Your Money Go Abroad: Tips for Saving While Traveling Internationally

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You’re finally taking that big trip abroad.

For as much time and energy you’ve spent saving up and searching for the best deals on flights or cruises, places to stay, and travel experiences, it would be a shame to blow extra money at the last minute. But that’s what you’ll be doing if you don’t use your cash and credit wisely.

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“The thing I never, ever, ever recommend doing abroad is (using) your debit card to pay for things unless you're withdrawing money from an ATM,” said consumer savings expert Matt Granite, who’s known as The Deal Guy on YouTube .

Here’s why and what else travelers should know before visiting another country:

Is it possible to utilize debit cards for international transactions?

Indeed, Granite highly advises against utilizing it for transactions other than ATM withdrawals.

He cautioned, 'You've just provided an unfamiliar terminal with access to your bank account using your PIN. You have absolutely no idea about what occurs after that.'

Is it better to travel with cash or credit?

Both.

“You generally want cash on you, always, in case of an emergency,” Granite said.

Currency comes in handy for tips and minor buys. However, for bigger deals, he suggests using a credit card, assuming they waive foreign transaction charges.

You’re much more susceptible to scams or getting less than what you’ve paid for in isolated regions where you lack familiarity with both your surroundings and those you interact with," Granite explained. "The risk of being cheated increases significantly compared to situations within familiar territories." He added, "Always opt for using your credit card since, in case anything goes wrong, you won’t be held liable for the charge. It offers protection; it includes fraud probes, holds on dubious transactions—all resources at your disposal to ensure safety.

What steps should I take to prevent foreign currency transaction fees?

Contact your credit card issuer or check their policy guidelines online prior to departing for your journey, and steer clear of using any cards that impose fees.

What amount of cash should you carry when traveling abroad?

"I believe that someone traveling for over three days in a country should carry at least $300," Granite stated.

He proposes an amount akin to $500 for households, noting that this might be reduced in locations where the dollar holds significant strength.

You should constantly ask yourself, 'How will I manage if I have to travel from an airport to a hotel and pay for one night’s stay when my credit card has been stolen?'” he explained. “It’s crucial to know how to fend for yourself overseas for about 24 to 48 hours since your credit card company might send you a new card via emergency FedEx or DHL during this period.

In which locations can US dollars be used?

A number of foreign nations adopt the U.S. dollar as their official money or legal tender. These include:

◾ Bonaire , St Eustatius and Saba

◾ British Virgin Islands

◾ Ecuador

◾ El Salvador

◾ Marshall Islands

◾ Micronesia

◾ Panama

◾ Palau

◾ Timor-Leste

◾ Turks and Caicos

U.S. dollars are also used as the currency in U.S. territories such as Puerto Rico and Guam. Certain businesses within these areas might follow suit. other destinations accept dollars at will.

Ways to obtain foreign currency

There are several ways to get foreign currency before and during your trip. You can order foreign currency from your bank for a fee. You can exchange cash at a currency exchange kiosk, though the exchange rate will not favor you. You can also withdraw cash at an ATM at your destination.

“Another trick that I use is if you are traveling and you do have a credit card with zero foreign transaction fees, you can often get very good exchange rates from both chain and boutique hotels to a limit,” Granite said, explaining that the front desk can give you local currency, then add that amount to your hotel bill like a room incidental. “Not all hotels can, but many hotels, specifically in Europe, will be very pleased to do so.”

Should I get foreign currency before I travel?

You don’t have to, but if you wish to, Granite mentioned, "Your bank can certainly provide an excellent experience, as long as the U.S. dollar gets stronger before your departure."

"For instance, if you plan to visit Canada, it would be entirely beneficial for you to exchange money into Canadian dollars at a U.S. bank prior to your trip if the U.S. currency holds more value. However, with respect to currencies such as the British Pound, it’s wiser to wait until you arrive in London rather than doing so earlier," he explained.

What is the optimal location for exchanging money?

A lot of tourists choose to use ATMs upon arrival at their destination to get more favorable exchange rates. However, there might be situations where you decide to go with an expensive currency exchange booth instead.

Those kiosks are typically located in brightly lit zones. They offer great security. You can usually find them in places like airports or within downtown centers when visiting locations where personal safety might be an issue," Granite mentioned, reflecting on a previous journey he took. "I could have obtained a much lower fee from ATMs situated in less safe districts during specific hours. However, I prefer paying the extra cost of $15 on a $100 cash advance for added protection.

Think about how much money you withdraw when using a currency exchange kiosk.

Some individuals believe that they can just withdraw a small amount, locate an ATM, and feel secure," he explained. "However, each time you use these ATMs, the fees tend to work against you. Usually, there’s a fixed charge for such transactions, which means you might end up paying $15 regardless of whether you withdraw $5 or $1,000.

Is it possible for me to withdraw cash from an overseas ATM?

Sure, however, be cautious of the charges involved.

Similar to what happens at your house, you could incur charges. usage fees By both the ATM operator and your bank when you withdraw cash from an out-of-network machine.

You can bypass or reduce these fees by using ATMs from your own bank. Global ATM Alliance Granite mentioned that you have the option to research banking partners online prior to leaving your house. Applications such as ATM Fee Saver Can assist you in finding ATMs without fees during your travels.

He cautioned that if your bank account typically restricts the number of withdrawal transactions you can perform monthly without charging fees, then withdrawals made abroad will also be included in this limit.

He additionally alerted travelers that ATMs are mandated by law to display fees on the screen.

If you come across an ATM you're not satisfied with, you can simply opt-out. Just remove your card and proceed to the next one just down the street," he explained. "Many individuals seem to believe – it’s quite a peculiar mental phenomenon – that inserting your card obligates you to finish the transaction. However, this isn’t true.

Is it possible to take out cash using a credit card?

Certainly, but it would be best to steer clear of it.

Always opt for your debit card at ATMs because the credit card fees are awful," Granite stated. "Nobody has ever had a positive experience combining credit cards with ATMs, and there’s generally no valid reason to do this except perhaps if your account balance is zero, which would indicate additional issues.

He likewise cautioned that if your debit card carries a partnership with a leading credit card firm such as Visa or MasterCard, ensure you perform transactions as debit rather than credit when making withdrawals.

Do I need to notify my credit card of international travel?

Not necessarily.

“Most credit card companies these days, within the last three to five years, have such sophisticated AI on you, they've already known you've booked your trip,” Granite said. “They've figured out somewhere along the way that you have a flight or you have a tour, or you've browsed on their app, something tied to where you're going, and they know you're going.”

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Would you prefer paying in a foreign currency or in USD?

Always make transactions using the local currency with your credit card," Granite advised. "If prompted to choose whether you want to convert, never opt to do so.

Ways to Dispose of Unwanted Foreign Currency

The simplest method to use up excess foreign money is to spend it.

“you rarely want to switch it back,” granite stated. “if we wind up with excess cash, as we often do during trips, we usually cover the remaining amount of our hotel fee with cash instead.”

An alternative approach is to keep the currency if you anticipate returning to the location.

“I find that even if you put that cash into an envelope and it sits in the safe, and you go back three years later, I never forget when I have pounds or euros in the safe based on what it took me to get them,” Granite said.

This article originally appeared on USA TODAY: Avoid squandering your cash during international trips. Tips for cutting costs while traveling overseas.