The Essential Guide to Smart International Spending

PAYING WITH CARDS

Be prepared for a highly cashless experience across all our destinations. This is especially true in major cities and popular tourist areas. Credit and debit cards are widely accepted. Particularly for larger purchases, credit cards should be your go-to method. Using a combination of a no-foreign-transaction-fee credit card and a debit card for ATM withdrawals is the most efficient way to manage your money.

Choose a No-Fee Card: Before your trip, get a credit card with no foreign transaction fees. These fees, which can be 3% or more per transaction, add up quickly. It's an easy way to save a significant amount of money.

Notify Your Credit Card Company: While not always required, it's a good practice to contact your credit card company and input a travel notice to prevent transactions from being flagged as suspicious or your card from being declined. Ensure your contact information is current and keep a record of the card's international customer service number for any potential issues during your trip.

Have a Backup: Carry at least two cards (ideally Visa and Mastercard). This way, if one card is lost, stolen, blocked for fraud protection, or doesn't work for some reason, you have a backup.

Always Pay in the Local Currency: When a merchant or an ATM asks if you want to be charged in U.S. dollars or the local currency (Euros, Pounds, etc.), always choose the local currency. This gives you the best exchange rate. Otherwise you will pay in U.S. dollars (known as Dynamic Currency Conversion) at whatever rate the merchant sets—typically a poor exchange rate.

Understand the Difference in Technology: Cards in many international destinations are usually issued with chip-and-PIN technology. That’s how cardholders authenticate their transactions with a personal identification number (PIN) at checkout. Your U.S. credit card likely comes with chip-and-signature technology, although more U.S. card issuers are allowing for chip-and-PIN. You typically don’t need to worry about the difference since most payment terminals now accept both types of cards, but…

Know your PIN: International purchases can be easier if your card has a PIN and you know it. Make sure you know the four-digit PIN for each of your cards, both debit and credit. Request it if you don't have one, as it may be required for some purchases (and will always be required for ATM withdrawals).

Go Contactless: As in the U.S., international destinations have also widely adopted contactless payments (tap-to-pay). If your card or phone is set up for this, it's often the quickest way to pay.

GETTING AND USING CASH

While card payments are prevalent, you'll likely still want some local currency for certain situations.

When You Need Cash: You may need cash for tipping at some restaurants, paying for small items at local markets, using some public restrooms, or at small, independent shops in less-visited areas. Most of the time, having cash is simply for convenience. You’ve just finished an incredible lunch and need to meet up with the group in five minutes—leave the cash on the table to pay your bill instead of waiting for your server to come to the table with a credit card machine.

Withdraw from an ATM: The best way to get cash is by withdrawing from an ATM at your destination. Avoid currency exchange desks at airports and tourist areas, as they offer terrible exchange rates. When possible, withdraw cash from a bank-run ATM located just outside that bank. Bank ATMs will have the best exchange rate, usually do not charge usage fees, and are generally more secure, as a thief is less likely to target a cash machine near surveillance cameras.

Avoid High-Fee ATMs: To spot and avoid a high-fee ATM, look out for brightly colored, standalone machines with names like Euronet, Travelex, Cardpoint, and Cashzone. These are operated by third-party companies, not banks, and are frequently located in tourist hotspots and airports for convenience. These are notorious for high fees and poor exchange rates, as they may trick users by offering to ‘perform the transaction in your home currency.’

You'll now be fully prepared to maximize the value of your next overseas adventure!