You have booked your international trip and may now wonder about the need for local currency upon your arrival. This is one of the most asked questions I get from people regarding international travel. There are several options when it comes to getting money and spending money while traveling internationally. For me, the simplest way to get money while out of the country is by using a debit card to make cash withdrawals from ATM machines. Now with using ATM machines or cash machines as they are called internationally, it is important to know what fees if any your bank charges on international withdrawals. The key to avoiding the fees is to bank with a bank that doesn’t charge fees on international withdrawals like Capital One.

Most U.S. banks charge 3% foreign transaction fee each time you make an international withdrawal when you use your debit card. Make sure you find out how much your bank charges for international withdrawals before your trip. So, depending on the fee it will determine whether to use your debit card for ATM withdrawals or take cash with you and exchange once you arrive to your destination. If you decide to take cash and exchange it in the country you are visiting, most countries charge an exchange fee. If the exchange fee is more than your bank’s foreign transaction fee, then use your debit card and take money from the ATM and skip exchanging money. Again, banking with a bank that doesn’t charge a foreign exchange fee makes this process less complicated. Like with the ATM withdrawals, each time you must exchange money you are charge a fee. In order to avoid some of the fees with exchanging money, try to minimize the number of times you exchange money. But the only risk with trying to minimize the number of times you are exchanging money is that you may be stuck with more cash on hand that you are comfortable with. And then at the end of your trip, if you were not able to spend all the cash you will have foreign currency that has little value when you return to the U.S.

To avoid carrying around a lot of cash, use a credit card that doesn’t charge a foreign transaction fee. There are many banks that offer these kinds of credit cards. Also, avoid using your debit card for purchases if your bank charges a foreign exchange fee. The reason why that each purchase will access a foreign exchange fee. Again, Capital One doesn’t charge a fee even on purchases internationally when using your debit card. Now if your credit card of choice is American Express or Discover, these cards are not accepted in many places around the world. But any Mastercard or Visa card is widely accepted worldwide. Credit cards are safer because if your card is stolen or charges appear that you didn’t make you can cancel your card or dispute fraudulent charges. But if you are carrying loads of cash, it makes you a target and if your cash is stolen then there isn’t much you can do besides reporting it to the police.

If you are of a certain age, you may be wondering why I didn’t mention traveler’s checks. American Express still sell traveler’s checks but many banks no longer offer them. And the reason as I explained that it is much easier to use your debit card these days when traveling abroad.

Now you have one less thing to be concerned about for your international trip. Whatever method you choose to use to access money while you are traveling internationally, remember to take the same precautions as you would at home. Enjoy your trip and happy spending while you explore your international destination.