I lost forty-seven dollars in bank fees on my first day in Thailand. I used my American debit card at an ATM in Bangkok, withdrew ten thousand baht, and was charged a three-dollar ATM fee by the Thai bank, a five-dollar foreign transaction fee by my American bank, and a two-percent currency conversion fee on the total amount. That was before the exchange rate markup, which cost me another twelve dollars. I had not researched my bank's international fees because I assumed they would be reasonable. They were not. Over the course of a year of travel, those fees would have added up to over one thousand dollars. I changed my banking setup the next week.
The Best Travel-Friendly Banks
Not all banks are created equal for travelers. In the United States, Charles Schwab offers a checking account with no foreign transaction fees, no ATM fees, and unlimited reimbursement of ATM fees charged by other banks worldwide. I opened this account before my second trip and have used it exclusively ever since. In the United Kingdom, Monzo and Starling offer debit cards with no foreign transaction fees and real-time exchange rates. In Australia, ING and Macquarie offer similar products. The key features to look for are: no foreign transaction fees, no ATM fees or fee reimbursement, and exchange rates close to the mid-market rate. If your bank charges three percent on every foreign transaction, you are paying a tax on every purchase you make abroad.
Credit Cards for Travel
Credit cards are essential for large purchases, hotel bookings, and emergencies. The best travel credit cards have no foreign transaction fees and offer rewards on travel spending. The Chase Sapphire Preferred offers two points per dollar on travel and dining and no foreign transaction fees. The Capital One Venture card offers two miles per dollar on all purchases. The American Express Platinum offers extensive travel benefits but has a six-hundred-ninety-five-dollar annual fee that only makes sense for frequent travelers. I carry two credit cards when I travel: one Visa and one Mastercard. Some countries accept one but not the other, and having a backup is essential if your primary card is lost, stolen, or blocked.
Managing Cash and Currency
Cash is still king in much of the world. I always carry two hundred dollars in US dollars as an emergency reserve. US dollars are accepted or exchangeable almost everywhere and are useful in crises. For daily cash needs, I withdraw local currency from ATMs using my Charles Schwab card. I avoid currency exchange booths at airports and tourist areas, which offer terrible rates. I also avoid exchanging money at hotels, which typically charge high commissions. When I have leftover local currency at the end of a trip, I spend it on groceries or transit to the airport rather than exchanging it back and losing money on the spread.
Protecting Your Money
Bank fraud is a real risk when traveling. I notify my banks before I travel, so they do not flag foreign transactions as suspicious. I check my accounts weekly for unauthorized charges. I use Apple Pay or Google Pay where possible, because these systems tokenize your card number and are more secure than swiping. I never use public Wi-Fi for banking. If I need to access my bank account on the road, I use my phone's cellular data or a VPN. And I keep my bank's international customer service number saved in my phone, in case I need to report a lost card or dispute a charge. These precautions take minutes to set up and can save thousands of dollars in fees and fraud losses.
