The single most consistent financial mistake I see travellers make is using a standard bank card abroad and paying foreign transaction fees on every purchase. These fees — typically 2.75-3% per transaction — add up to a significant sum over a long trip, and eliminating them costs nothing beyond choosing the right card. Here is how to stop paying them.
What to Look For in a Travel Card
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- No foreign transaction fees — the most important feature; this alone saves 2-3% on every purchase abroad
- No or low ATM withdrawal fees — some cards charge per withdrawal; others reimburse ATM fees
- Good exchange rates — interbank or near-interbank rates, not the marked-up rates banks often apply
- Travel rewards or points — bonus points on travel purchases, points that transfer to airline programmes
- Travel insurance — some premium cards include trip cancellation, delayed baggage and car hire insurance
Best Travel Credit Cards
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Chase Sapphire Preferred (USA)
For US-based travellers, the Chase Sapphire Preferred is the benchmark travel credit card. It earns 2x points on travel and dining, has no foreign transaction fees, offers primary car rental insurance, and the points transfer to a wide range of airline and hotel partners at a 1:1 ratio. The annual fee is , which the sign-up bonus and ongoing rewards more than justify. This is the card I hand to any American asking where to start with travel rewards.
Wise Card (Global)
The Wise card (formerly TransferWise) is not a credit card but a debit card linked to a multi-currency account, and for international spending it is exceptional. The exchange rates are the best I have found — the real interbank rate with a small transparent conversion fee — and the first two ATM withdrawals per month are free. It is available in most countries and works in virtually every currency. I carry it as a backup card on every trip and use it for ATM withdrawals wherever local cash is needed.
Starling Bank (UK)
For UK-based travellers, Starling Bank offers a free current account with a debit card that has no foreign transaction fees, real exchange rates and free ATM withdrawals worldwide. There is no annual fee, no minimum balance and the app is excellent. It is, simply, the best card for travelling Brits and the first thing I recommend to anyone who asks.
ATM Strategy: How to Avoid Getting Ripped Off
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Always choose to be charged in the local currency when using an ATM abroad — never accept “Dynamic Currency Conversion,” which lets the ATM apply its own exchange rate (always worse than your bank’s rate). Use ATMs attached to established banks rather than standalone machines in tourist areas. Withdraw larger amounts less frequently rather than small amounts repeatedly — each withdrawal may carry a fixed fee.
Carrying Cash
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Some destinations still run primarily on cash — markets in Morocco, street food in Southeast Asia, small guesthouses in rural areas. Keep a reserve of local currency for these situations, obtained from a bank ATM with your no-fee travel card rather than from airport exchange bureaus (which offer the worst rates of any option). A small amount of US dollars is useful as a universal backup currency in many developing countries.
Also read our guide on how to book cheap flights — saving money on the fare and saving money on spending abroad are the two most impactful financial decisions you make before any trip.
