Last updated on January 4, 2025 by Shannon
Together, my debit and credit cards and I have been through the good (no withdrawal fees), the bad (two percent transaction fees), and the ugly (whaddaya mean withdrawals and transactions are blocked in Slovenia? … I’m traveling in Slovenia right now).
Although every traveler can benefit from the right card, long-term travelers and expats especially benefit from using debit cards that eliminate any and all foreign transaction fees.
After more than 15 years abroad (traveling and living overseas), two seamless banking solutions have positively impacted my international travels. Note that none of these cards compensate me or reward me—they’re just the solution I’ve found is best for travelers.
Let’s specifically discuss the best credit and debit cards for travel, and how to handle your cash—important since many developing countries are cash-based economies.
Five Considerations for Travel Credit & Debit Cards
1. Find Out the Transaction Fees
Many credit card companies tack on a 1% to 3% foreign transaction fee to every purchase. For long-term travelers, this is a clear no-go.
Find out the fee for foreign transactions made on your current cards. Read the fine print. Cards designed for use in the U.S. may charge you several percentage points to use the card internationally.
Check your credit cards, but check your debit card that you’ll use for travel, too. Since you can use debit cards as credit cards (swiped rather than used to withdrawal cash at an ATM), you must check that fine print as well.
2. Ask Your Bank About Withdrawal Fees
Many banks charge a flat fee every time you use an international ATM.
Ask before you leave. Many international banks also charge a withdrawal fee, so you might get hit twice if your bank card charges a withdrawal fee on your travel debit card!
The best debit card—and there are a couple of them—won’t charge this fee, and will even reimburse your account if you’re charged a fee to withdrawal.
3. Find Out if Any Countries are Blocked
Believe it or not, you might not be able to withdraw any cash in some countries. My local credit union blocked all transactions from Thailand and Slovenia—my small bank had designated them as locations “highly likely for fraudulent activity.”
And in 2023, my mother visited me in Spain and her credit union’s Mastercard credit card just couldn’t figure out its business—she had put a travel notice on her card but we never got it working throughout her two weeks, despite at least six phone calls.
Now that I use a different bank for primary debit card accounts when I travel, this is no longer an issue. If you’re also using a local credit union, talk with them in person about your planned trip.
4. Verify Your Accounts are Completely Accessible Online
Can you access your account balance abroad? And even more, can you handle banking issues from overseas? You might assume yes, but again, it really can depend on the bank—local credit unions might have an IP address block outside the U.S. (mine does!).
Some banks also demand your personal presence to replace a lost card; other times banks only ship to the address on file. These are all huge potential headaches that you should know before you’re traveling and face debit card issues.
Nowadays, most banks also offer a smartphone app.
5. Carry Different Brands of Debit Cards
Visa and MasterCard are the most widely accepted credit and debit cards and you should to carry one of each type of card. As strange as it sounds, many countries primarily accept just one of the two brands.
Is There Really a Best Debit Card for Travel?
A resounding, yes!
Those extra fees most banks charge add up—if you’re on the road for a month and modestly withdraw money twice a week, you’ve blown $30 just on bank fees.
Then, stack on top of your bank’s fee the fact that all overseas banks also charge a withdrawal as high as six dollars in many cases, and you are looking at $70 in banking fees—all money that is much better spent on your trip.
Charles Schwab Travel Debit Card
Charles Schwab is an online-based bank with unparalleled advantages for travelers—even after 10+ years since I signed up for my Schwab checking account, I have yet to hear of any other U.S. bank that comes close to offering the range of free services Schwab offers travelers.
The Pros of Schwab for Travelers:
- No foreign transaction fees
- No ATM withdrawal fees
- Reimburses withdrawal fees charged by any other bank
- Never requires appearance at a bank branch to access services
- Telephone customer service is a cinch, and email responses questions are prompt
The Cons of Schwab for Travelers:
- There’s no bank branch where you can sit across from a human and demand answers (since nothing has ever gone wrong, I’ve never missed this).
- Transferring funds around between accounts outside Schwab is not seamless (though customer service goes out of their to help ease the process).
travel tip
In addition to ensuring my bank and credit cards cover these main areas, my father is also listed on my bank accounts in case surprising issues crop up (and they have over the years).
If you have a trusted family member or friend, consider allowing them to work on your behalf, if necessary. It takes good faith, because my dad has fully authority on my account, but if you have someone you absolutely trust, it’s handy to have them on your local accounts.
How to Avoid Paying Bank Fees When Traveling
When I left on my world travels, the U.S. had just entered the 2008 recession and I was moderately content with the $1 foreign withdrawal fee tacked onto ATM withdrawals from my local credit union checking account. Fast forward nine months.
As the recession hit hard, my credit union upped the fee to $2.50 per withdrawal. That hit my travel budget harder.
Once I returned Stateside, I switched to Schwab. Across 15 years and 50+ countries, Schwab has lived up to its fee-less withdrawal promise. At the end of every month, Schwab reimburses my account for any withdrawal fees charged by another bank.
Considering Spanish and Thai banks charge $5+ per withdrawal, I love seeing a credit of $25+ bank into my account each month. This single feature is a huge asset for any travelers, but long-term travelers specifically.
You can’t afford to not bank with Schwab—to my knowledge, no other U.S. bank offers this feature.
Other Great Cards for International Travelers
- ING Direct: Read through the comments below—other people have raved about the ease of money transfers and service with ING.
- Capital One Direct Banking: This option also comes highly recommended in the comments for its easy online interface and lack of transaction fees.
- Caxton FX Global Traveller: This prepaid MasterCard has a diehard contingent of fans among some long-term world travelers.
- Chase Reserve Credit Card: I carry a Chase Reserve credit card in my arsenal because it lacks international transaction fees, it offers me Priority lounge access at airports all over the world, and I earn three times the points on all travel dollars charge. When coupled with my Schwab bank card, it covers everything I’ve needed to travel for ten years and then live overseas for another seven.
Opt for a Contactless Card
Contactless payment is huge across all of Europe and the UK and you will feel like a Luddite without credit and debit cards with chips that allow for “tap and pay” features.
If you don’t have a contactless card, add your primary rewards card to your Apple Wallet—then it’s easy to tap and and pay and earn points.
It’s Worth Switching Banks to Avoid Fees
In terms of fees: All of my above recommendations stand as the best options for Europe—and the rest of the world too! Because these cards don’t charge withdrawal fees, you don’t need to worry about finding a partner bank while traveling.
Disclosure: I have no degree in finance and there are no guarantees if you take my advice on using these companies. This is a personal, friendly recommendation from a fellow traveler; no more and no less. No one paid me to recommend these cards—every recommendation comes from personal experience and reader feedback and my own experience. :)
Great (juicy) information, but I prefer using my TransferWise debit card (Mastercard): the better option to travel around the world!
Thanks Igor for weighing in. I do like Transferwise in the idea of it, but when I signed up and started using it, I found that since I get paid solely in the U.S., that these cards recommended above all had better withdrawal or conversion rates (free and ATM fees reimbursed—never seen this elsewhere), and I didn’t end up using my Transferwise account at all. In what situations do you prefer it over a regular debit card like Schwab, where you get credits back every month for any bank anywhere that charges you a withdrawal fee?
Thanks so much for this! I’ve found many of your extra cash carrying / hiding habits to be very helpful. Additionally, in hotel rooms, I put a cheap loud motion detector in my closeted bags to scare off people rifling through my stuff. It HAS been set off.
Have you looked into the newish Transferwise “Borderless” accounts that come with a debt card (Mastercard waitlist)? They’re supposedly a boon to digital nomads… in particular for being able to send and receive funds in over 40 currencies. I’m not an expert, but the thing that stood out to me is that the “Borderless” account enables being paid in a slightly more traditional way, since it automatically sets one up with a bank account in 4 different currency zones.
From the website:
British Pound – Get your own Account Number and Sort Code.
Euro – Get your own SWIFT/BIC and IBAN details.
US Dollar – Get your own Routing (ABA) and Account Number.
Australian Dollar – Get your own BSB Code and Account Number.
I’d be curious to hear from working digital nomads who’ve used this!
So glad that the information has proven useful! I have looked into the Transferwise “Borderless” accounts, and several of my travel friends just love them. I ultimately decided that I didn’t need one because I have a local bank in Europe now that I am an expat, and my Schwab account has allowed me to transfer in currency from everywhere else in the world (including the UK, the EU, and Australia). But it would absolutely make good sense for many travelers who need to be paid in multiple currencies and either don’t have a Schwab account, or those doing serious business in alternate currencies. Again, several travel friends just rave about it so it’s definitely popular in the digital nomad community!
All excellent info. I will also praise ING. I’ve been using them since 2001 and never had any issues. I also use Schwab, love them but only negative is having to transfer funds from brokerage account into checking, and a Capital One MC, no issues with them. Chase recently eliminated international transaction fees. I’m using a British Airways Chase Visa as my main card and have had zero issues.
Thanks for weighing in Mike! I mail in deposits to my Schwab checking, so I
hadn’t realized that they make it difficult to transfer funds like that, but
you’re not the only one to point that out – a real drawback! As for Chase,
if they really have taken away international fees then I just might get an
account there, they have so many rewards points programs and the such! :)
As always Shannon, this is a fantastic bit of advice! I have been pondering the money handling question for a while now (starting my RTW in a week) and this answered a lot of my questions. I only wish Canada has comparable options. I’m hoping my American SSN helps me land a Charles Schwab account. I have read that in SE Asia, American dollars are the way to go. Do you happen to know if they are easy to get there, or if it is necessary to carry cash over (yikes!)?
Glad that you found some helpful stuff in this post Kerri! And it is too bad
that you don’t have these options in Canada – though I hear that ING Direct
is pretty good through the grapevine (ie other comments here in this
thread). …As for the question of dollars – you are definitely going to
want to bring over American $ rather than Canadian – and I say that you
should always have at least US $100 stashed on you at the beginning of you
trip – seriously good to have money on you if you get in a pinch, get stuck,
lost – it’s just good to have. As far as restocking cash, Cambodia’s ATMs
give out US$ when you use them, so you can restock there if need be! :)
I have to admit that I’m glad I brought my Capital One card with em to Italy. I caleld HSBC card to let them know I’m traveling and they say no problem they’ll make a note. When I got to there the card was decline and won’t let me charge anything. However Capital one worked. (And I never called them too). Good thing I had it with me.
That’s precisely why I love having multiple cards, different companies and
logos on them – it’s just craptastic when they decide to not work on you!
Glad that your CapOne card worked for you, it’s always in my wallet too :)
I have them both. We’re planning to use these 2 cards for our RTW trip and are test driving them right now. So far we really like them, but I guess the real test drive is still upcoming.
These should really do you well, I haven’t hadn’t had a single problem yet
:) Just make sure to give them both the travel warning before you leave!
:)
What I meant was, there is NOT a single pic in which your prettiness does not shine.
Great list of tips Shannon! This sounds a lot like the one nomadicmatt just did. Like you, I do cash, credit, and debit cards. Some people may not like using credit cards or could get into trouble with it but I love the idea. I’ve always been responsible with money and love my budget spreadsheet about as much as I do my blog. I am very frugal and financially responsible so I have no issues with a credit card. I know others who do online banking only and it seems to work well for them and it does save money on fees.
However, I do have a question for you. Since American credit and debit cards use magnetic stripe and some other countries use the chip and pin, have you ever run into any issues using your cards while traveling?
That’s a really great question – and I actually only encountered that problem in Europe when I was trying to book bus and train tickets online…they wanted a pin number of some sort… not sure what. But, the whole issue with the chips and what-not is why I always, always have a Visa and a MasterCard (and I carry an AmEx in Europe) and that got me through without any real hitches.
(PS – yeah, I saw Matt’s post but already had this queued up so went with it :)
Wow, Shannon, thanks so much for these tips! I have been thinking about this issue on and off for quite awhile, this helps a bunch.
Glad to help! It can make a difference on the road which one you choose, happy travels! :)
I’m a sucker for airline mile cards but for good ol’ fashioned banking I like ING – the online interface is great and makes it an attractive option even if you just use it to transfer money between other banks. It also has a higher than average interest rate on checking and savings :)
I’ll add ING to the list Anil, I haven’t really had much interaction with them but I like the fact that they’re good with online money transfers, that’s apparently an area where Schwab is not so hot. Will look into them! :)
Shannon, I have the Schwab checking account and maybe I have one that’s slightly different than yours because mine has no ATM fees but doing anything online is impossible. In particular, I can’t move funds around online which drives me insane.
We use Capital One Direct Banking for our checking which I really love because they give me a great rate on foreign currency fees, as well as their whole system is online and easy to use.
I love my Capital One No Hassle Miles card! We’ve actually had really good luck with their customer service. They refunded us $400 when Europcar overcharged us in Australia without any hesitation. I could do ads for Capital One . . . that’s how much I love them.
Hmm…I don’t do a lot of moving funds from my Schwab account because I run out of two accounts, and just really use my Schwab for travel (and fund it before I leave)…it seems a little crazy that they would make it that difficult to do your banking online since they’re an online bank!
Great tip on the CapOne banking – I have never looked into that, but I really prefer easy online systems so you’re not having to Skype on horrible connections to get things done!
This is REALLY helpful info!
I use a Capital One card and absolutely love it–although I feel you on the customer service! My only gripe is that it takes 20 minutes just to do one simple thing because they ask you a million repetitive questions–but in the end, they get it done, and that’s what matters.
My home bank is Tri Counties, a community bank in Sacramento. They also never charge for ATM withdrawals and reimburse me for other bank’s fees, similar to Charles Schwab. Plus they give me an amazing interest rate and I love dealing with them when I’m at home–so friendly and helpful! Helps that my whole family banks with them, so I can ask any questions through them when I’m abroad.
Might look into Charles Schwab though–been hearing lots of good things, although the online only part would take a bit of getting used to.
Christine, I might check out TriCounties to save money. Right now I use Chase and while it’s big, it has cost me money when I travel. And my current interest rates are AWFUL!
Chase has a lot of great programs and cash back incentives when you are in the States, by best friend uses them, but if you are heading out of the country you should definitely look into a bank that isn’t going to charge you ridiculous fees! :)
Thanks for including your local recommendation – I would love to find a bank that good in Florida, becuase I really like the local feel and being able to walk into a branch sometimes. But, Schwab is worth looking into if you need to change banks, or if you are looking to invest since they are really well known for that side of their business to!
I really enjoyed this, Shannon. I found it very interesting and informative. It was something I was curious about without ever really knowing I was curious about it. I am fortunate enough (for the moment) that I am not living paycheck to paycheck, but finances are always one of my concerns and priorities, and something that holds me back from doing all the things I want to do. I really, really enjoyed this article.
P.S. There is a single pic in which your prettiness does not shine!
Glad you liked it Bill and thanks for commenting! :) If you really really want something then it’s worth saving for…where there is a will there’s a way! What are your finances holding you back from?
Training how to SCUBA, then scuba and cage diving with Great White sharks.
Excellent and well worth waiting then! I know that’s one of your Big Dreams
:)