Got a trip coming up? You may be planning to put everything on a credit card, but plastic isn’t always the most convenient or the safest way to pay. And nobody enjoys paying foreign transaction fees. Before you head to the airport, read these 5 tips for traveling abroad that can save you a good amount of money.
1. Travel With a Card That Has No Foreign Transaction Fee
You may already have thought about an international data plan for your phone. Have you thought about whether your credit cards are up to the trip?
The cards already in your wallet may not be the best ones to take overseas. It’s worth opening a card built for international travel, with perks such as no foreign transaction fees, concierge service and rewards points you can earn abroad.
Use a card that does charge transaction fees and you’ll pay an extra 2-3% on every purchase. If a vacation is on the calendar, a travel credit card is one of the best investments you can make.
2. Pay Cash If Fraud Worries You
Credit card fraud can hit anyone, anywhere, and vacation is the last place you want to deal with it. A credit card is great for big travel costs like hotels and car rentals, but for smaller purchases, cash is king.
Paying in cash is an easy way to avoid being targeted by thieves. Restaurants and shops abroad often don’t have the most secure payment systems, so cash is the safer bet. If you’d rather pay by card, use a credit card instead of a debit card, since credit cards protect you against fraudulent purchases. When money is stolen from your debit account, it’s much harder to recover.
3. Shop Around for a Good Exchange Rate
Changing money at the airport is easy, but that convenience costs you in the form of a worse exchange rate. Stay away from exchange counters that are obviously aimed at tourists, because some of them tack on extra fees.
An ATM is often one of the best places to get local currency. You’re likely to get a better exchange rate, and it’s convenient too. You may still pay a fee to withdraw cash, though. The best way to keep those charges down is to take out a larger amount at once, since more ATM visits mean more bank fees.
4. Let Your Bank and Card Issuers Know You’re Traveling
Before you go, get in touch with your bank and credit card companies and tell them where you’re going and for how long. You may be able to do this in online banking; if not, give them a call. This keeps your bank from declining your transactions and possibly blocking your card. If they don’t hear from you, your bank may treat the charges as fraud and leave you without access to money while you’re away.
5. Skip the Oversized Tips
After all that work dodging fees and finding a good exchange rate, don’t throw money away on American-size tips. It won’t make you look cheap. In many other countries, servers, bartenders and other service workers are generally paid more than their American counterparts.
Some restaurants abroad add a service charge to the bill already, so check before you tip on top of it. In most European countries, people usually round up to the nearest even number or leave 5% of the total.