AAs you travel, you will need to be able to access money in a safe and reliable manner, both for daily expenses and emergency expenses. But whether you’re traveling as close as Mexico or as far as Southeast Asia, you could be subject to foreign transaction fees when using your card.

These fees can be quite significant if you are using the wrong card. But what options do you have if you want to avoid fees, need to access funds, yet recognize that carrying cash on your travels is a terrible idea? Well, this is where the right debit card can come in handy, especially if you choose one that doesn’t charge overseas transaction fees.

Best Debit Cards with No Foreign Transaction Fees

Whether you want to be able to shop online for free or just need to have access to cash while traveling, there are some great card options available. By choosing one of the following debit cards, you can avoid foreign transaction fees regardless of how you spend your money.

Capital One 360 ​​Audit

This online bank offers one of the most enviable checking accounts on the market, which is packed with features. One of the characteristics of Capital One 360 ​​chequing account is that there are no overseas transaction fees when using your debit card.

Not only that, but the bank will also not charge you a foreign currency conversion fee when you buy abroad, nor will it ping you for using a foreign ATM. However, they will not refund you if the owner of that ATM charges you a fee.

• Minimum monthly balance: $ 0

• Foreign transaction fees: Nothing

• Refund at the ATM: Not offered

• Currency conversion fees: Nothing

Varo money

Going one step further with online banking is Varo money, an app-based bank that offers competitive, no-cost accounts. Their checking account is free and never charges for transactions abroad.

• Minimum monthly balance: $ 0

• Foreign transaction fees: Nothing

• ATM fees abroad: None of Varo

• Refund at the ATM: Not offered

• Currency conversion fees: Nothing

Schwab Bank High Yield Investor Verification

If you want a bank account with a name you know and trust, look no further than Schwab High Yield Investor Audit. Not only can you shop worldwide free of charge, but you can also use ATMs (foreign and domestic) and enjoy unlimited reimbursement of ATM fees.

• Minimum monthly balance: $ 0 (if linked to a brokerage account)

• Foreign transaction fees: Nothing

• Refund at the ATM: Unlimited refunds worldwide

• Currency conversion fees: Nothing

What are the foreign transaction fees?

If you’ve ever bought something with a credit or debit card overseas, you’ve probably encountered the dreaded foreign transaction fees, sometimes referred to as currency exchange fees. These can also occur when you buy something online in another country, even if you are sitting in your own living room.

These are, after all, fees for a “foreign transaction”. If the transaction goes through a foreign bank on the way to your bank, even if you ask to be billed in US dollars instead of the local currency, these charges are fair. And they can add up quickly.

Foreign transaction fees cost cardholders, on average, 3% in addition to the actual amount of their purchase. It breaks down into two distinct parts. First, the fees charged by the credit card network (MasterCard, Visa, American Express, Discover), which generally operate at 1%. Then additional fees are often added by the actual card issuer (Chase, Citibank, etc.), which can range from 1% to 3% more.

If you travel for an extended period of time and use your card daily to purchase tickets, food, transportation, and souvenirs, it could cost tens or even hundreds of dollars in additional expenses. If your network and transmitter fees are 3%, and you make a $ 250 purchase overseas, you’re spending $ 7.50 more just to pay.

Another downside to foreign transaction fees is that even though they are added to your credit card statement and you will pay them along with your original transaction, you will not earn cash back. no rewards. These fees are simply more money out of your pocket.

Debit cards vs credit cards

There are a number of great reasons to travel with or use a credit card when shopping online. Credit cards offer consumers a range of protections: if your card is compromised, you are not responsible for fraudulent charges. If you order an item or make a purchase and it is not as described, arrives damaged, or is not received at all, your issuer will provide you with recourse options.

This is especially true when traveling abroad. If your wallet is lost or stolen while you’re away from home, you’re safer with a credit card than a debit card. Your issuer is able to not only lock your account, but also send you another card and reverse any fraudulent transactions that may have occurred. With a debit card, however, you could find yourself on the verge of paying some fees that aren’t yours, or your funds could be tied up while your bank sorts the fraud.

However, there are still good reasons why you might want to find a debit card from a bank that doesn’t charge an overseas transaction fee. First of all, you might want to use your debit card to make purchases online, which might go through a foreign bank. If so, choosing the right debit card can help you avoid the fees.

The other reason to choose a debit card suitable for travel is that you may want to have access to cash abroad. Credit cards will charge you a cash advance fee (and often higher APRs) for doing so. However, your debit card will allow you to use foreign ATMs; with the right card, you won’t have to worry about the extra fees to access your own money.

summary

Whether you’re a seasoned jet setter or just planning a potential trip, it’s a good idea to anticipate foreign transaction fees. This is especially true if you are shopping online, where a fee may escape you if you make a purchase that goes through a foreign bank.

It’s good to have a credit card with no overseas transaction fees, but so is a debit card that can be used to get cash no matter where you are in the world. world. By choosing the right bank, you will always have access to your money when you need it and you won’t have to pay high fees in the process.