We all know that traveling can be a pretty expensive hobby sometimes, right? This is especially the case when you are using your credit card to deal with money situations in a foreign country. But there is so much more to banking overseas than just putting your credit card in an ATM. With this in mind, if you are planning on traveling overseas in the near future, there are some certain things that you need to know! You need to know how to know how to get rid of foreign transaction rates and how to get good exchange rates, as well as how to avoid paying bank fees.
There is a whole lot of people out there who travel overseas and pay ATM fees only to get hit with unexpected credit card transaction fees. But it doesn’t have to be like that at all – you just need to know how to prevent something like this from happening to you. After all, you didn’t save all that money just to give it to the banks later on, did you? Of course you didn’t. You want to keep all that money for yourself, because the math is very simple here – every single fee that you manage to avoid equals more money for food, drinks, and activities!
Eliminating the ATM Fees
Regardless of how much you pay for them, ATM fees can take a big amount of your money over time. While you are on the road, it is pretty much safe to say that you will withdraw money from an ATM at least twice a week. While ATM fees are not the same in every single country, an average price is about $5 per withdrawal. What this means is that you would end up paying about $10 per week, $40 per month, or $520 per year just for the ATM fees.
There are some travelers out there who use an ATM more than two times a week, which basically means that they probably end up spending way more money than that. In order to avoid paying ATM fees, you should use your bank’s partner ATMs. If your bank doesn’t have any partner ATMs, you should try to get a low-fee credit card.
Don’t Use ATMs in Weird Locations
If you see an ATM standing in the middle of your hotel, just do your best to avoid using it. While using that ATM may seem like a pretty convenient solution to you, that solution is usually pretty expensive. These ATMs usually charge high ATM fees and offer some pretty bad conversion rates.