International travel can bring a host of logistical challenges to navigate. In the process of enjoying a trip abroad, tourists tend to make a few mistakes, especially when it comes to money.
From ATM transactions to currency misunderstandings, the opportunities for financial missteps are numerous. With that in mind, we asked personal finance experts to share the money mistakes people commonly make while traveling abroad ― and their advice for avoiding these errors.
Paying foreign transaction fees on your credit card.
“One mistake is paying foreign transaction fees when using a credit card, which is around 3% of each transaction, and that can add up,” said consumer finance and budgeting expert Andrea Woroch. “If you travel abroad often, it’s a good idea to get a credit card that has no foreign transaction fees.”
If you’re unsure about your card, check with your bank ahead of your trip to avoid paying transaction fees. Compare alternative options as well.
“It’s much better to research ahead of time and use credit cards that have no foreign transaction fees,” said Bola Sokunbi, author of “Clever Girl Finance, Expanded & Updated: Ditch Debt, Save Money and Build Real Wealth.”
Arriving without cash in the local currency.
“The top mistake many travelers make is not arriving with cash on hand,” said NerdWallet travel expert Sally French. “Waiting to get cash from an ATM upon arrival can certainly make sense, but there might be multiple situations where you need cash before you’ve had a chance to get to an ATM. That might include paying cab fare or tipping the hotel employee who carried your bags to your room.”
Although you can find an ATM at the airport when you land, you’ll likely have to pay hefty withdrawal fees. Instead, consider ordering foreign currency from your bank before departing.
The exact amount you’ll need depends on your personal spending habits, group size and comfort carrying cash, but French suggested $100 to $300 to cover cab fare, meals and emergencies before you’ve had a chance to replenish your bills at a local ATM.
“If you absolutely forgot to order cash upon arrival and you only have American bills, you might at least try to offer those bills as payment,” she added. “Not all people will accept them. But, in some countries, the people you’re paying might prefer them.”
Having cash on hand is generally a smart move so you’re not stuck in a situation where you can’t pay. “It’s important not…
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