Avoid Prepaid Cards
The new modern traveler’s check seems to come in the form of a prepaid card that often advertises “NO FOREIGN TRANSACTION FEES.” While purchasing a card that has already converted your money into the currency of your choice may seem like the way around the fee problem – it’s NOT. While you may not get charged an international transaction fee, other fees to purchase the card in the first place are likely even higher! Not to mention, if you need to refill the card, more fees will be charged…
Additionally, you may only use these cards for purchases in the currency that you originally planned. Meaning…. if you have money left, you most likely won’t be able to convert the money on the card back to dollars!
Don’t Let Stores Convert You
If a store offers to convert your credit card transaction from the local currency into U.S. dollars – say NO THANK YOU! While it may be tempting not to have to do any extra math, merchants can charge as high as 7% of your total purchase for this “special service.” –Remember, this charge is in addition to the fees your card will tack on…
Taking Out Cash Abroad
Typically, using your ATM overseas is the best way to get more favorable exchange rates on cash. But keep in mind, your bank is likely to charge you a higher fee than they would at home. Expect fees up to $6 or 3% of your total withdrawl – each time!
Budget an Extra 3%
While it may seem dauntingly unfair that we are charged more to use your own money abroad, the truth is, if you’re lucky enough to have the luxury to travel – suck it up and budget properly for your trip. Adding in an extra 3% to your total budget is the safest way to make sure you won’t overspend as a result of hidden fees!
Download the Xpense Lite App!
Want a Fab & Fru must do tip? On our trip to Norway, my colleague and I used the FREE Xpense Lite App to track our expense report for the trip – right on our smartphones. It was brilliant! By creating a new account for the trip, we were able to log in every receipt and instantly calculate (and automatically include) the credit card and ATM fees. In a brutally expensive place like Norway, this app totally helped us keep to our budget – including all the hidden expenses. I highly recommend it!
What are your tips for managing your money while traveling abroad?
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Great information, thank you for alerting not so savvy overseas travlers.
Great info!! We discovered the same surprise last time we traveled to Mexico. This year we will be sure to call our cc company prior to leaving. Thanks for the reminder!!!
ALWAYS keeping us informed. I had NO idea and am happy to have this valuable info. Thank you!!!
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