{"id":14537,"date":"2023-08-25T14:48:34","date_gmt":"2023-08-25T18:48:34","guid":{"rendered":"https:\/\/desis.osu.edu\/seniorthesis\/?p=14537"},"modified":"2023-08-25T14:48:35","modified_gmt":"2023-08-25T18:48:35","slug":"the-4-best-payment-strategies-to-use-when-traveling-internationally","status":"publish","type":"post","link":"https:\/\/desis.osu.edu\/seniorthesis\/index.php\/2023\/08\/25\/the-4-best-payment-strategies-to-use-when-traveling-internationally\/","title":{"rendered":"The 4 Best Payment Strategies to use When Traveling Internationally"},"content":{"rendered":"\n

1) Pay with a no foreign-transaction fee credit card<\/h2>\n\n\n\n

Many cards add an extra fee to each transaction you make in a foreign currency. Typically the highest foreign transaction fees are around 3 percent. That can add up quickly if you\u2019re charging dining, lodging and other expenses when traveling internationally. It\u2019s easy to avoid this fee by having at least one credit card without foreign-transaction fees in your wallet.<\/p>\n\n\n\n

A little more than half (52 out of 100) of credit cards in the 2018 CreditCards.com Credit Card Fee Survey had a foreign transaction fee<\/a>. That number\u2019s down from 77 out of 100 in the 2015 survey. But there\u2019s still a lot of cards that have this fee. So it pays to choose the card you use abroad wisely.<\/p>\n\n\n\n

Visa and Mastercard are far more widely accepted overseas than Discover and American Express, so if you are only going to take one card make sure it\u2019s one you can use in the most places.<\/p>\n\n\n\n

For those who don\u2019t want an annual fee or a foreign transaction fee<\/a>, the Capital One<\/a> VentureOne Rewards credit card, the Bank of America Travel Rewards credit card and the HSBC Cash Rewards Mastercard credit card are some options.<\/p>\n\n\n\n

Some of the credit cards that don\u2019t have a foreign-transaction fee<\/a>, also don\u2019t have an annual fee. But sometimes cards with annual fees may have more perks or earning potential when it comes to cash back, miles or points. So choose the card that best fits your spending and the perks or benefits you want in a credit card.<\/p>\n\n\n\n

Keep in mind that in Europe, for instance, many merchants require chip and PIN transactions.<\/a> Some transactions, such as at unattended transportation payment stations, may be rejected if your card doesn\u2019t have a PIN.  <\/a><\/p>\n\n\n\n

2) Pay in foreign currency<\/h2>\n\n\n\n

Carrying large amounts of cash is far from ideal, and making lots of small transactions to get cash can get costly.<\/p>\n\n\n\n

First, see if you can find a bank in the U.S. that doesn\u2019t charge you a fee, or will reimburse your fee, for using an ATM abroad.<\/p>\n\n\n\n

\u201cI recommend checking to see if your bank is a member of a Global ATM Alliance which can help eliminate or reduce fees, and then just taking cash out in a local currency that way,\u201d says Melanie Lieberman, travel editor at The Points Guy.<\/p>\n\n\n\n

For instance, Bank of America is a part of the Global ATM Alliance with nine other banks in different countries. For instance, if you were traveling to Italy, you can go to the BNL D\u2019Italia website to find an ATM. As a Bank of America customer, going to one of these ATMs would help you avoid the non-Bank of America ATM usage fee, which is $5 as well as the fee charged by the ATM.<\/p>\n\n\n\n

As long as your ATM or debit card works abroad, this method can be a way to potentially get a more competitive exchange rate than you would at a U.S. currency exchange.<\/p>\n\n\n\n

\u201cPersonally I wouldn\u2019t bring any foreign currency with me unless I had some leftover from a previous trip,\u201d Julian Kheel, senior analyst at The Points Guy. \u201cI\u2019ve never had an issue getting local currency from an ATM, even in China, so I\u2019d save myself the exchange fees. However, if someone isn\u2019t as comfortable with that as I am, they can certainly bring some local currency with them \u2014 they\u2019ll just be paying extra for the privilege.\u201d<\/p>\n\n\n\n

It\u2019s a good idea to let your bank know that you may be using your debit, ATM or credit card internationally. Some banks recommend you contact them before traveling, while others say there\u2019s no need to. But generally, it\u2019s better to take a few minutes and let your bank know to avoid problems away from home.<\/p>\n\n\n\n

\u201cI would recommend that travelers research their options upon arrival, notify their bank before departure, and make sure there are ATMs at the airport or that you\u2019ve arranged transportation in advance,\u201d Lieberman says. Bank branches in the U.S., a AAA location, a local currency exchange or the airport are potential options for obtaining foreign currency in the U.S. While these methods allow you the comfort of having foreign currency in your hand when you land, you\u2019re likely to pay a premium for this convenience in fees and potentially unfavorable exchange rates.<\/p>\n\n\n\n

If you use your credit card to withdraw cash at an ATM, you may face the following fees:<\/p>\n\n\n\n