Traveling abroad can be exciting, whether you’re exploring Europe’s cobblestone streets, relaxing on a tropical beach, or heading off for a business trip. But alongside the joy of new adventures comes an often-overlooked expense: international travel fees.
These hidden charges can creep up through ATM withdrawals, poor currency exchange rates, mobile wallet fees, and more. Even if you already use a no-foreign-transaction-fee credit card, you may still end up paying extra if you don’t plan ahead.
This article will show you how to save on international travel fees with smart strategies that go beyond just picking the right credit card. You’ll learn how to use ATMs wisely, avoid bad exchange rates, leverage mobile wallets, and balance cash vs card usage — ensuring your next trip is more affordable and stress-free.
If you’re also looking for the best no-foreign-transaction-fee credit cards, don’t miss our full guide here: Best No-Foreign-Transaction-Fee Credit Cards for Holiday Travel 2025.
1. Understanding International Travel Fees
Before you can reduce travel fees, it’s important to know exactly what to look out for. Here are the most common costs travelers face:
- Foreign transaction fees – Many banks charge 2–3% on every purchase made abroad. Over a week-long trip, this can add up to $50–100 in unnecessary costs.
- ATM withdrawal fees – Using an international ATM may trigger two charges: one from your home bank and one from the local bank. Together, this could cost $5–10 per withdrawal.
- Dynamic Currency Conversion (DCC) – Merchants or ATMs sometimes offer to “convert” charges into your home currency. While convenient, it often comes with inflated exchange rates and extra fees.
- Poor exchange rates – Exchanging money at airport kiosks or hotels can mean losing up to 10% of your money compared to mid-market rates.
💡 Example: If you spend $2,000 abroad, hidden fees and poor conversions could easily cost you $100–150. That’s money better spent on experiences — not bank charges.
2. Smart ATM Usage Abroad: Minimize Withdrawal Fees
ATMs can be the easiest way to access local currency abroad, but they’re also one of the most common fee traps. Here’s how to minimize costs:
Tips for using ATMs wisely
- Use bank-owned ATMs – Stick to machines operated by major banks, not small independent kiosks. Independent ATMs often charge higher fees and give worse exchange rates.
- Withdraw larger amounts less often – If your bank charges a flat fee per withdrawal, it’s smarter to take out $200 once instead of $50 four times.
- Avoid Dynamic Currency Conversion (DCC) – Always choose to be charged in local currency, not your home currency, when prompted at an ATM.
- Use global ATM networks – Some banks are part of worldwide alliances (e.g., Global ATM Alliance) that waive fees.
📊 Data point: According to The Points Guy, the average out-of-network ATM fee in 2024 was $4.73 per withdrawal. Combine that with a 3% conversion fee, and a $200 withdrawal could cost nearly $12 in fees.
3. Currency Exchange Tactics: Get Better Rates
While withdrawing from ATMs is often cheaper than exchanging cash at airports, sometimes you’ll need to swap currency directly. Here’s how to get the best deal:
Best practices for exchanging currency
- Avoid airport kiosks and hotels – These are notorious for offering poor exchange rates, sometimes 10% below the market rate.
- Exchange a small amount before departure – Having $50–100 in local currency for taxis or snacks on arrival can be useful, but don’t convert too much upfront.
- Use local banks or official exchange centers – They usually provide rates closer to the mid-market exchange rate.
- Check apps like XE or Wise – These apps show live mid-market rates so you can compare offers before exchanging.
💡 Example: If the mid-market rate is 1 USD = 0.90 EUR, but the airport kiosk offers 0.80 EUR, you lose 10 cents per dollar exchanged. On $500, that’s a $50 loss.
4. Mobile Wallets and Multi-Currency Accounts
In recent years, fintech solutions have changed the way travelers handle money abroad. Mobile wallets and multi-currency accounts like Wise, Revolut, and N26 offer major benefits:
Why use them?
- Real-time exchange rates – Transactions are often processed at close to the mid-market rate, not inflated rates.
- Store multiple currencies – You can hold USD, EUR, GBP, and more in one account.
- Virtual debit cards – Protect against fraud when booking online or paying abroad.
- Instant transfers – Send or receive money across borders quickly.
📊 Stat: Wise claims its users save up to 3% per transaction compared to traditional banks. Over a $5,000 holiday, that’s $150 in savings.
5. Prepaid Travel Cards and Debit Options
If you’re not comfortable using a credit card or mobile wallet, prepaid travel cards are another option. These allow you to load money before traveling.
Pros
- Safer than carrying cash.
- Lock in exchange rates when you load funds.
- Easy to budget since you can only spend what’s on the card.
Cons
- May come with reload fees or inactivity fees.
- Not as widely accepted as credit cards.
- Exchange rates can still be worse than fintech options.
📌 Tip: Prepaid travel cards are often a good option for students and budget travelers who want to avoid overspending.
6. Cash vs Card: Finding the Right Balance
One of the biggest questions travelers ask is: Should I rely on cash or card abroad? The truth is, you need both.
When to use cash
- Local markets, taxis, and rural areas where cards aren’t accepted.
- Tips or small daily purchases.
When to use cards
- Hotels, restaurants, and online bookings.
- Purchases over $50 where carrying cash isn’t practical.
💡 Travel tip: Always keep an emergency stash of $100–200 USD or EUR. These are widely accepted and can save you if your card stops working.
7. Hidden Traps to Avoid
Even with the best planning, there are still traps that can drain your wallet:
- Dynamic Currency Conversion (DCC): Always say “charge me in local currency”.
- Credit card cash advances: Avoid using your credit card for ATM withdrawals — they come with high fees + immediate interest.
- Double conversions: Some banks convert USD → EUR → Local currency, charging you twice.
✅ Checklist before paying abroad:
- Is this ATM or merchant reliable?
- Am I being asked to pay in USD instead of local currency?
- Are there hidden fees in the fine print?
8. Putting It All Together: The Smart Money Toolkit
Here’s how to combine all the strategies for maximum savings:
- Primary spending tool → No-foreign-transaction-fee credit card.
- Cash needs → Debit card or fintech app (Wise/Revolut) with minimal ATM fees.
- Backup → Prepaid travel card or small stash of USD/EUR.
- Avoid traps → Say no to DCC, avoid cash advances, and skip airport kiosks.
By mixing these tools, you’ll cover every situation without overspending.
Conclusion
International travel is about creating memories — not paying banks unnecessary fees. While using a no-foreign-transaction-fee credit card is a great start, there are many more ways to save. From smart ATM usage and currency exchange tactics to fintech wallets and prepaid cards, these strategies ensure your money goes further.
👉 Want to learn more? Check out our guide to the Best No-Foreign-Transaction-Fee Credit Cards for Holiday Travel 2025.
💬 Have your own tips for saving money abroad? Share them in the comments and help fellow travelers save too!