Hidden banking fees and charges might not look like a big deal at first, but they quickly add up and can make a big dent in your budget. This is especially the case if you are traveling and using your credit or debit card abroad. In order to avoid this from happening on your next trip, check out these helpful tips for avoiding banking and currency exchange fees while traveling.
Ask Your Bank for a Credit/Debit Card That Has no Foreign Transaction Fees
The chances are that your current credit/debit card will charge some type of fee for a transaction in a foreign country. The cost usually ranges from 1% to 5% and can do some serious damage to your balance.
In order to avoid this, ask your bank to give you credit/debit card that has no foreign transaction fees. These types of cards will allow you to make any purchase anywhere in the world without any extra cost.
Don’t Use Foreign ATMs to Withdraw Money
ATMs are usually the quickest way to get your hands on some cash, but they will also be the priciest when you are abroad. This is because you will be charged a fixed fee, usually $10 or more, when withdrawing money on a foreign ATM while also being given a bad exchange rate.
Exchange Money Before the Trip
You can avoid both fees and unnecessary hassle if you just exchange your money for foreign currency before making the trip. Your local bank will probably give you a good rate, and you won’t have to pay conversion fees that can be scary high in some countries.