6 Ways to Save Money When Traveling Abroad

While you can't put a price on making memories from a dream trip overseas, there's also no reason to spend money on fees you can easily avoid.
Here are six tips for keeping costs low and managing your money during your next trip abroad.
1. Try to minimize transaction costs
Credit and debit card issuers may charge foreign-transaction fees—which can run from 1% and 3% of the purchase price, according to LendingTree —as well as ATM fees. That might seem like a minor expense on a per-transaction basis, but those extra charges can really add up if you're executing multiple transactions per day.
Your overall cost could comprise two fees: one from the issuing bank and one from the card company. So, be sure you understand what fees your bank and credit card companies charge. And note that even if you have a fee-free card, ATMs or merchants may still charge a fee. Always check your card's terms and conditions to find out exactly what fees you're responsible for.
2. Find the best exchange rate
Airport currency kiosks may be convenient but can also levy a variety of fees or commissions. Even so-called no-fee exchanges could cost you extra by offering unfavorable exchange rates.
Cash withdrawals from ATMs are generally the best choice for day-to-day funds—but, again, beware of transaction fees. Some banks impose a flat fee per withdrawal, while others don't and may even refund those levied by others.
If you anticipate needing cash, exchanging currency at your local bank or credit union before you leave may provide a lower rate. It's best to check ahead, however, to confirm that they have the foreign currency in hand as well as to check on the conversion rate—banks typically don't exchange currencies for free. Once you arrive at your destination, you might be able to get a decent exchange rate at your hotel as well.
3. Watch out for "dynamic currency conversion"
Many travelers are enticed by the convenience and familiarity of receiving bills—at restaurants, for instance—in U.S. dollars. But this new trend, called dynamic currency conversion, can come with an unfavorable exchange rate, transaction fees, or both. So, when asked if you want to pay a bill in the local currency or in U.S. dollars, go with the local option—unless you can verify that the cost of using U.S. currency is negligible or at least worth the convenience of not having to convert in your head.
4. Take advantage of built-in benefits
Before you book your trip, see if your credit or debit cards offer travel-related perks that can save you money or ease your journey. For example, many offer hotel and restaurant reservation assistance, free Wi-Fi access on eligible flights, and even discounts on certain types of accommodation and transportation. Review your cards' benefit terms or call your providers for full details.
5. Consider travel insurance to cover risk
Disruptions such as cancellations, delays, or missed flights or other scheduled activities can create extra expenses. So can lost baggage or theft, accidents, or illness requiring medical care.
Your card could provide coverage for some of these risks, but you can also get additional protection. The price of travel insurance is typically about 4%–6% of your travel cost, according to Forbes, and while this insurance may not feel like a money saver at the time of purchase, it can be a life saver when you need it the most. Contact your insurance provider for more information.
6. Secure your information
Nothing ruins a trip like a lost or stolen wallet, so take a picture of the contents of your wallet, including the fronts and backs of credit, debit, and insurance cards so you can find all of those important phone numbers to call in case of emergency. Keep a copy on your phone—or better yet, in the cloud—along with pictures of your passport and any other important documentation.
While you're at it, contact your cell phone provider regarding phone and data packages while overseas. Your plan may not work in your final destination, or you may find a cheaper, temporary option to use instead.
Also, be sure to activate transaction or fraud alerts for all accounts that offer them so you're notified right away of suspicious activity. Sophisticated cybercriminals can capture your financial information even if your cards stay in your possession.
You may be able to set up a travel notice to have your bank monitor your accounts for fraudulent activity when traveling. When travel monitoring is active, debit and credit cards are scrutinized for high-risk transactions.
A cost-conscious travel companion
The Schwab Bank Visa® Platinum Debit Card (available to Schwab Bank Investor Checking™ account* holders) provides a wealth of benefits, even when you're traveling abroad:
- It's accepted at millions of merchant outlets and ATMs in more than 200 countries and territories worldwide.
- You incur no foreign-exchange transaction fees for purchases made with your debit card. 1
- It provides extra layers of protection like card lock/unlock, transaction and account alerts, two-way fraud text alerts, and travel notifications.2
- Unlimited worldwide ATM cash withdrawal fees are rebated on a monthly basis.3,4
- It offers additional travel benefits, including Fraud Protection for Unauthorized Transfers or Purchases, Travel Accident Insurance, and Travel and Emergency Assistance Services. It's linked to a Schwab One® brokerage account with no minimum balance requirement and free online transfers between accounts.5
- Schwab Bank cards are also covered by the Schwab Security Guarantee. If an unauthorized transaction is made in your Schwab Bank account, you will not be responsible for that transaction or for any related interest or transaction charge.6
We offer a travel reward card for clients.
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Investment and Insurance Products: Not a Deposit • Not FDIC Insured • Not Insured by any Federal Government Agency • No Bank Guarantee • May Lose Value
* The Schwab Bank Investor Checking account is available only as a linked account with a Schwab One® brokerage account. The Schwab One brokerage account has no minimum balance requirements, no minimum balance charges, no minimum trade requirements, and there is no requirement to fund this account when opened with a linked Investor Checking account.To learn more about other Schwab Bank checking accounts, please contact Schwab Bank at 888-403-9000.
1Schwab Bank does not assess foreign transaction fees (i.e., a fee to convert US Dollars to local currency) to Schwab Bank clients when you use your Schwab Bank Debit Card to withdraw foreign currency from an ATM, or to pay for a purchase in foreign currency. However, in some cases ATM operators or the merchants may charge a fee on foreign transactions. Foreign transaction fees assessed by third parties are not eligible for reimbursement. The exchange rate into the U.S. dollar equivalent will be determined by the bank at which you conduct the transaction, the ATM network, or Visa depending on the specific arrangements that are in place.
2Lock your card if it's lost or stolen, if you suspect fraud, or if you won't be using it. You can lock your card if it is activated and in good status. Locking blocks cash advances, ATM withdrawals, and purchases at point of sale, online, or over the phone. The account is still active and you can still see your balances.
Note that even if your card is locked, the following transactions still continue:
• Recurring transactions and bill payments
• Credits and reversals.
We'll notify you anytime the card is locked or unlocked. For assistance in locking or unlocking the card or to file a fraud claim, contact us at 888-403-9000.
3The rebate will appear as a lump-sum credit on the same checking account periodic statement that includes ATM fees incurred for that particular account statement cycle.
4 Unlimited ATM surcharge rebates apply to cash withdrawals using the Schwab Bank Visa® Platinum Debit Card wherever it is accepted. ATM surcharge rebates do not apply to any fees other than surcharges assessed for using an ATM to withdraw cash in local currency from your Schwab Bank account. Schwab Bank makes its best effort to identify those ATM surcharges eligible for rebate, based on information it receives from Visa and ATM operators. In the event that you have not received a rebate for an eligible surcharge, please call a Schwab Bank Client Service Specialist for assistance at 1‐888‐403‐9000 (or for clients of independent investment advisors, a Schwab Alliance Service team Member at 1-800-515-2157). Schwab Bank reserves the right to modify or discontinue the ATM surcharge rebate at any time.
5Refer to the Enhanced Benefits for VISA Platinum Debit Cardholders.
6The Schwab Security Guarantee: Schwab will cover losses in any of your Schwab accounts due to unauthorized activity. More information about the Schwab Security Guarantee is available at Schwab Security Guarantee | SchwabSafe | Charles Schwab.
Charles Schwab & Co., Inc. and Charles Schwab Bank, SSB are separate but affiliated companies and subsidiaries of The Charles Schwab Corporation. Investment products [, including the Schwab One brokerage account,] are offered by Charles Schwab & Co., Inc., Member SIPC. Deposit and lending products, including the Investor Checking account, are offered by Charles Schwab Bank, SSB, Member FDIC and an Equal Housing Lender.
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