HOW TO AVOID CARD FEES FOR CASH WITHDRAWALS AND PAYMENTS ABROAD?
Getting ready to trek through the dense Amazon rainforest or enjoy a classy restaurant in Singapore? Wherever your 2024 adventures might take you, managing your money efficiently is crucial. You don’t want to be sweating about transaction fees every time you swipe your card. Thankfully, the fintech revolution has brought us a slew of no-fee payment cards that make managing your travel budget a breeze, allowing you to save more for what really matters—your experiences.
In this guide, we’ll dive into some of the best no-fee payment cards designed for international travelers. The options listed are debit cards, which are connected directly to your bank account or a pre-loaded balance. Debit cards generally offer fewer fees on foreign transactions compared to traditional credit cards and are easier to manage since you spend money you already have.
Let’s explore how these cards stack up against one another and why they might just be the perfect companions for your global escapades!
Advantages of Cards Without International Fees:
- Cost Savings: Avoids the typical 1% to 3% foreign transaction fees, saving money on each purchase.
- Enhanced Security: Safer than carrying cash and typically includes security features such as fraud alerts.
- Wider Acceptance: Often accepted globally, facilitating seamless transactions in multiple countries.
- Exchange Rate Advantages: Typically offers competitive exchange rates compared to local currency exchanges or banks.
- Rebates on ATM Fees: Some cards offer rebates on fees charged by the ATM operators, which can range from $2 to $5 per transaction.
Wise
Originally famed for its low-cost money transfer services, Wise has expanded into offering a multi-currency account with a debit card that allows you to hold and convert over 50 currencies at the real exchange rate—the one you see on Google.
Fees: Wise charges a small fee to convert currencies in your account, typically much lower than traditional bank rates. When using your Wise card, you get the real exchange rate for spending in any currency you have in your account, and for over 200 countries, you can withdraw up to $200 every 30 days without fees (there’s a small fee after that).
Additional Perks: Instant notifications on expenditures, freezing/unfreezing of your card via an app, and the ability to use Apple Pay and Google Pay.
Obtaining the Card: To get started, sign up on their website or app, verify your identity, and order your card. The process is straightforward, and the card usually arrives within a couple of weeks, depending on your location. You can also order up to two virtual cards and start spending immediately.
Type of Card: Debit
Accessibility: Wise is available to residents in many countries around the world, including the United States, the UK, much of Europe, Australia, New Zealand, and many parts of Asia and Latin America. However, availability can vary, and it's a good idea to check whether Wise offers their card in your country by visiting their website.
Our Opinion: This is a popular option for travelers looking to manage their money across borders. If you travel regularly, are a digital nomad, or want to save in several currencies, it's worth checking out Wise.
Revolut
Revolut has quickly become a favorite among digital nomads and frequent travelers thanks to its robust app and range of financial services. This card allows you to exchange money in over 30 currencies at the interbank exchange rate, with a small 0.5% fee for anything above $6,000 each month.
Fees: No fee for monthly account maintenance and no fees for currency exchange under $6,000 per month. ATM withdrawals are free up to $300 per month, after which a 2% fee applies.
Additional Perks: Revolut offers built-in budgeting features, crypto exchanges, and even stock trading. It also offers great security features, including location-based security, the ability to lock/unlock the card, and customizable spending limits.
Obtaining the Card: Revolut can be accessed by downloading the app and completing a registration process, which includes identity verification. Once your account is set up, you can order a physical card or start using a virtual card immediately.
Type of Card: Debit
Accessibility: The company started in Europe but has expanded to include many other regions, such as Australia, Singapore, Switzerland, and the United States. Make sure to check their website to see if their services are offered in your home country.
Our Opinion: Revolut is a smart option if you just want a card to avoid fees abroad; but it can even be more useful if you are interested in exploring crypto exchanges and stock trading.
Starling Bank
Starling Bank is a mobile-first bank that has gained popularity among international travelers and digital nomads. Available primarily in the UK, it’s suitable for those living in or visiting the UK frequently.
Fees: Free payments in any currency with no fees for spending abroad. ATM withdrawals in the UK and abroad are free, but there are limits on the amount that can be withdrawn for free each month.
Additional Perks: In the app, their "Spaces" feature allows you to create sub-accounts to manage savings goals and budgets efficiently. Additionally, Starling offers features like overdrafts and loans.
Obtaining the Card: Signing up involves downloading the app, registering, and going through an ID verification process. Once approved, your card will be mailed to you.
Type of Card: Debit
Accessibility: The company is focused on the UK market and is available to residents of the UK.
Our Opinion: Starling Bank is worth checking out for those working or living in the UK who want to manage their money while living in the UK.
Charles Schwab Bank
Often hailed as the best option for U.S. travelers, the Charles Schwab Bank High Yield Investor Checking Account comes with a debit card that offers unlimited ATM fee rebates worldwide.
Fees: No monthly fees, no account minimums, and no foreign transaction fees. Charles Schwab’s account also refunds any ATM fees charged by ATM operators at the end of each month.
Additional Perks: The account yields a small amount of interest, and its robust mobile app allows for easy deposits and standard mobile banking transactions. It’s also backed by the robust customer service and investment services of Charles Schwab.
Obtaining the Card: To open a Charles Schwab High Yield Investor Checking Account, you must also open a brokerage account, but you're not required to use it. The application is online and typically requires standard personal information and verification.
Type of Card: Debit
Accessibility: Charles Schwab’s High Yield Investor Checking Account is primarily available to U.S. residents. It's particularly advantageous for U.S. citizens or residents who travel frequently due to its favorable terms on international transactions and ATM withdrawals.
Our Opinion: American travelers seeking a solid and reliable bank to avoid commissions abroad can benefit from opening an account with Charles Schwab Bank.
Local Banks
While international online banks are excellent options for the global traveler, it’s also worth considering the offerings from local banks in your home country. Depending on where you are based, local banks might provide certain benefits tailored to your region's specific needs or financial environment.
For instance, in the United States, some local banks might offer travel rewards credit cards that come with a host of travel-specific perks such as airline mile accruals, access to airport lounges, and more. Similarly, European banks might provide cards with advantageous terms for transactions within the EU, reducing fees or offering special conditions for euro transactions.
These local options can be particularly advantageous if you travel frequently within your home region or conduct most of your transactions in your domestic currency. However, for those who venture internationally on a regular basis, or who manage money across multiple currencies, global platforms provide unparalleled flexibility and are designed to handle diverse financial needs seamlessly online, making them hard to beat for international travel.
Which Fee-Free Card to Choose Abroad?
When picking a no-fee payment card for traveling abroad, consider your travel frequency, primary currencies, and typical spending habits. Cards like Wise and Revolut are fantastic for travelers who hop between countries and currencies. In contrast, N26 and Charles Schwab might be more suitable for those spending longer periods in Europe or the U.S., respectively.
By opting for any of these cards, you’re saving money while enjoying your trip. So, pack your bags and your digital wallet, and get ready for a smoother journey in 2024!
Enjoy stress-free travels by reading our top travel tips and resources for 2024!
