Traveling abroad is an exciting experience, but hidden fees like ATM charges can quickly add up and eat into your budget. Whether you’re withdrawing cash for souvenirs, meals, or transportation, those pesky fees can take a toll. Fortunately, with a little planning and the right strategies, you can avoid ATM fees abroad and keep more money in your pocket. Here’s how to do it.
Choose the Right Bank Before You Travel
One of the easiest ways to avoid ATM fees abroad is to pick a bank that offers international fee-free withdrawals. Many banks charge foreign transaction fees (typically 1-3%) and ATM operator fees, but some financial institutions cater to travelers with more favorable policies.
Look for Banks with Global ATM Partnerships
Certain banks have partnerships with international ATM networks, allowing you to withdraw cash without extra charges. For example:
- Charles Schwab reimburses all ATM fees worldwide.
- Revolut and Wise offer low-cost or free withdrawals up to a certain limit.
- Capital One 360 doesn’t charge foreign transaction fees.
Check Your Current Bank’s Policies
Some banks waive fees for international withdrawals if you maintain a certain account balance. Call your bank before traveling to see if they offer any travel-friendly perks.
Use Fee-Free ATMs Whenever Possible
Not all ATMs charge the same fees. In many countries, you can find machines that don’t impose extra charges, especially those affiliated with major banks.
Avoid Convenience ATMs
ATMs in airports, hotels, and tourist areas often charge higher fees. Instead, look for ATMs inside bank branches, which are more likely to offer fairer rates.
Research Local Banks Before You Go
Some banks in foreign countries don’t charge fees for international cardholders. For example, in Europe, many ATMs operated by major banks like Deutsche Bank or Barclays may offer free withdrawals depending on your card issuer.
Withdraw Larger Amounts Less Frequently
Since many ATMs charge a flat fee per withdrawal, taking out larger sums of cash at once can help minimize the number of transactions—and fees—you incur.
Calculate the Optimal Withdrawal Amount
If an ATM charges $5 per withdrawal, taking out $200 once is better than withdrawing $50 four times. Just be sure to keep your cash secure and avoid carrying excessive amounts.
Be Mindful of Daily Limits
Some banks impose daily withdrawal limits, so check your bank’s policy to avoid multiple trips to the ATM.
Consider Alternative Payment Methods
Cash isn’t always necessary—many places abroad accept credit cards, mobile payments, or digital wallets, which can help you avoid ATM fees altogether.
Use a No-Foreign-Transaction-Fee Credit Card
Cards like Chase Sapphire Preferred or Capital One Venture don’t charge foreign transaction fees, making them ideal for purchases abroad. Just be sure to notify your bank before traveling to avoid fraud alerts.
Try Digital Payment Apps
Services like Apple Pay, Google Pay, or local payment apps (e.g., Alipay in China) are widely accepted in many countries and can reduce your reliance on cash.
Plan Ahead and Carry Backup Options
Even with the best strategies, unexpected fees or ATM issues can arise. Having a backup plan ensures you’re never stranded without access to money.
Bring a Secondary Card
Carry at least two debit or credit cards from different banks in case one gets blocked or lost.
Exchange Some Cash Before You Leave
While exchange rates at airports aren’t the best, having a small amount of local currency can be helpful for immediate expenses like taxis or tips.
By following these smart travel tips, you can avoid unnecessary ATM fees abroad and keep your travel budget intact. From choosing the right bank to using alternative payment methods, a little preparation goes a long way in saving money. Now, you can focus on enjoying your trip without worrying about hidden charges eating into your adventure fund.
