Here are my favorite tips for how to exchange money abroad, based on personal experience. 

Once you’ve planned a trip abroad, booked the flights, and let excitement fill your soul, it’s time to work out some logistics. 

How do you get money while you’re overseas? What bank accounts and cards should you have?

How do you get cash out abroad? Do you even need cash these days?

The best way to exchange money abroad can vary, depending on your destination and personal financial situation. 

I’m going to share my own tips for getting money while traveling. My methods may not work for everyone, so I’ll try to just give some well-rounded advice that I’ve learned over the years. 

My tips for how to exchange money abroad are based on personal experience. 

Before I dive into how I personally like to exchange money abroad, I have to emphasize that I AM NOT A FINANCIAL EXPERT. 

You should always consult a financial expert before making any decisions regarding bank accounts or credit cards. 

Everything in this article is just what I have learned through my own online research and experience overseas. 

So be sure to do your own research, apply my tips to your own personal situation, and talk to a professional if needed. 

Don’t miss my full list of 50 Budget Travel Tips that I always use to save money abroad!

How To Exchange Money Abroad

In this guide, I’ll cover three major categories to help you plan the financial aspect of your travels:

• Bank accounts
• Cash
• Credit/debit cards

I will also try to answer some of these common questions in a simple and straightforward way:

• What is the best bank account for travel?
• What is the best way to get cash in a foreign country?
• Is it better to use cash or cards while traveling?
• What sort of cards do I need for travel?

Hopefully this advice resonates with the average person who might not be super financially savvy. 

I’ve mostly stumbled my way through traveling and figured things out as I go. By now, I have a pretty reliable system for using money in different countries.

Again, this is not professional advice, just what I have learned over many years of traveling. 

Bank accounts – Make sure your bank account is suitable for travel

Before you even think about how to exchange money abroad, you should look at the bank where your money is stored. 

Some banks are more suitable for travel than others. If you plan to travel often throughout your life, you’ll want to bank with an institution that supports international money movements. 

If you’re just doing one international trip every few years, this probably won’t matter that much. 

But if you do want to travel often, I highly recommend switching to a travel-friendly bank. 

Here are some things to look for in a bank account suitable for travel.

No foreign transaction fees

Definitely try to use a bank that has accounts with no foreign transaction fees! 

This is easily the most important thing to consider before you travel. 

Some bank accounts charge a fee on any international purchase, whether it’s a card transaction, an online purchase, or an ATM withdrawal. 

The fees may be small, but they add up over time. 

Keep in mind, some banks may only have a specific account or credit card option that offers no foreign transaction fees. Some banks have this policy universally for all of their products.

Examples of banks famous for having no foreign transaction fees include:

• HSBC
• Capital One
• Charles Schwab
• Santander
• Discover 
• Citibank
• Revolut

Easy customer service contact

I also highly recommend choosing a bank with a great customer service department. 

That means having a live telephone number that you can call from anywhere in the world. It also helps if you can speak to an actual person! 

Many banks are 100% online these days, and a physical branch might be rare to find when you’re traveling. 

So make sure you can call your bank and talk to someone if needed.

There is nothing worse than having money troubles abroad and not being able to contact someone to fix it.

Tips for organizing your money before traveling

Regardless of the bank you use, here are some ways to get your money organized before you travel. 

Notify your bank of your travels 

Some banks require that you notify them of your travels. This helps them protect against fraud, so make sure you do this before you leave your home country. 

If your bank sees a purchase in an unexpected foreign country, they might block the transaction. This is great if it actually is fraud, but not so great if you need money overseas and can’t get to it. 

(Another reason why you want to be able to call your bank abroad – you can tell them which purchases are fraud and which ones are actually you). 

As lots of banks are international these days, this isn’t as common as it used to be. But it’s worth checking with your bank if they require notification of travel or not.

Have a way to access your bank account abroad

This is also a very important tip for learning how to exchange money abroad. You want to have access to your bank account while traveling! 

Most banks have an online banking app where you can view and manage your money. 

Make sure you have this downloaded on your phone and you know how to access it abroad. 

I highly recommend getting an eSIM when you travel so you can have data on your phone. This allows you to use internet for accessing your money at any time. 

Otherwise, you can use free Wifi which is readily available in many places. However, it is convenient to have internet access without needing to search for Wifi. 

I always use a Saily eSIM while traveling – they are so easy to set up and they are affordable! Code GABBY saves you 5% on your eSIM purchase.

Only put what you need into your spending account

Most people will likely already do this, but it’s a good idea to have separate spending and savings accounts. 

Keep the majority of your money in a savings account. Only transfer what you need for an occasion into your spend account. 

This just helps keep the bulk of your money safe in case of theft or fraud.

Most debit cards are only linked to a spending account. So on the off chance your card is stolen, no one will be able to access the money in your savings account. 

Consider how much money you’ll need for your trip and store only that in your spending account. 

If you do spend it all and you need to transfer more money, you can do so with your internet banking app (again, make sure you can access this abroad with either an eSIM or free Wifi). 

Cash – Exchanging, withdrawing, and using cash abroad

Now let’s talk about withdrawing and exchanging cash abroad. 

Though card payments are getting more and more common around the world, I still mostly use cash while traveling. 

How to get cash out in a different country?

You can get foreign currency abroad by either exchanging physical cash or withdrawing cash from an ATM. 

Exchanging cash abroad

For currency exchange, you’ll have to bring your own cash from home and then exchange it for the local currency. 

Lots of people exchange cash at the airport because it’s convenient. Or they exchange cash at a local bank in their destination. 

Withdrawing cash abroad

For withdrawing cash abroad, just put your personal debit card into an ATM and withdraw from your account in the local currency. 

You can usually find ATMs at the airport as well as in your destination. 

If you are heading somewhere pretty remote, it’s worth double-checking that they have ATMs there. Sometimes secluded islands or small towns might not have ATMs and it’s important to get cash before you arrive.

What is the best way to get cash out overseas?

I personally always withdraw cash from an ATM instead of exchanging currency. It’s a simple and hassle-free way to get cash abroad without an extra commission charge. 

Currency exchanges, especially ones at the airport, often charge extra for commission. So I tend to avoid doing this. 

However, if you already have some cash in your own currency and you’d prefer to use that, it’s still a valid way to exchange money abroad. 

But my favorite way to get cash out overseas is withdrawing from an ATM.

If your bank doesn’t charge foreign transaction fees, you should be able to just withdraw cash without any extra charges. 

Some ATMs may charge an international transaction fee, but they are usually minimal. I’ll shortly recommend how to avoid those as well. 

Do exchange rates matter when getting cash abroad?

Of course, if you can find a good exchange rate then you’ll get better value for money when you exchange currency. 

The better the exchange rate, the more local currency you can get. 

However, I rarely check this when getting cash abroad. It just feels like too much hassle if I’m only exchanging a small amount of spending money. 

I’m sure you could research the exchange rates at multiple institutions in your destination to find the best rate. If you are going to spend a long time in one place or you’re exchanging a lot of money, it may be worth checking the exchange rate. 

But if you just want a bit of spending money on a trip, I’d recommend just keeping it simple. 

Tips for handling cash abroad

Here are some tips to safely and responsibly exchange and handle cash abroad. 

Try to use official ATMs at a local bank

When withdrawing cash from an ATM abroad, I recommend using an official ATM at a bank. They are generally the most secure option. 

ATM scams are possible while traveling, though I personally have never seen or experienced one.

So just use an official ATM at an established local bank for that extra layer of safety. 

Banks are also usually tied to a set exchange rate, meaning they can’t play around with the rates and get more money out of you. 

ATMs at the airport are generally pretty safe as well. I’ll normally get a little cash at the airport to use when I first arrive somewhere, and then get more cash from a local bank later on. 

Get the ATM Fee Saver app

The ATM Fee Saver app is a handy tool for finding the best ATMs abroad.

On the app, you can see the different ATMs around you and what their fees are like. Then you can choose an ATM with low fees.

ATM Fee Saver also has a handy article about tips for using foreign ATMs. Read more about the app and their tips on the website!

Withdraw in bulk to avoid lots of little ATM fees

I also recommend withdrawing cash in bulk so you only have to pay any ATM fees once. 

If you’re constantly making little cash withdrawals, you may get charged a fee every time. This adds up, so try to just make one withdrawal. 

Though it can be cheaper to make one big withdrawal rather than lots of small ones, you also don’t want to withdraw too much money.

If you don’t spend all your cash while traveling, you’ll have to convert the leftover back to your home currency. 

That can cause you to lose more money to the exchange rate or fees. 

So try to estimate exactly how much you’ll need for your trip, and only withdraw what you’ll spend. 

That can be tricky, but just do your best! The more you travel, the easier it gets to estimate your spending habits. 

Only walk around with the cash you need for the day

If you do withdraw a big amount of cash for your entire trip, definitely don’t walk around with all of it every day. 

Pickpockets can be common in touristy areas around the world. The last thing you want is a whole week’s worth of cash to be stolen while you’re out and about. 

When you’re out sightseeing and exploring, only bring the amount of cash you’ll likely need for the day. 

Store your cash in a safe or locked storage spot

So where do you keep the rest of your cash if you’re only bringing a small amount for the day?

It’s important to keep the bulk of your cash stored securely while traveling. 

Most accommodations, even cheap budget hostels, have personal safes or lockers where you can store your valuables. 

It’s also smart to travel with your own padlock and luggage locks to keep your belongings safe, just in case your hostel doesn’t have lockers with built-in locks. 

If you don’t have a safe in your room, most accommodations will allow you to store valuables in the safe at the front desk. 

I also recommend storing things like your passports, IDs, visas, cameras, laptops, and other valuables in your locked, secure spot.

Tips for using credit and debit cards abroad

Now that we’ve covered bank accounts and cash, here are my top tips for using credit and debit cards abroad!

Have a card with no foreign transaction fees

I’ve said this a few times already, but it’s the #1 thing to look for in your credit or debit card while traveling. 

Whether you’re using a debit card to withdraw cash, or you’re buying things with a credit card, you want to avoid extra fees on every purchase. 

Bring a debit card abroad

If you want to withdraw cash abroad, you’ll need to bring a debit card with you. 

This sounds obvious, but I have forgotten mine before!

I rarely use debit cards for purchases anymore, as I’ve converted to using credit cards. So I recently forgot to pack my debit card when traveling and I couldn’t withdraw any cash. 

Luckily, there were places that accepted card payments. But if I were traveling somewhere remote and couldn’t get any cash, I would have been in trouble. 

Have a credit card for digital purchases (if a credit card is right for you)

If you prefer to pay for things with card as opposed to cash, you can often use credit cards abroad. 

I am a huge fan of credit cards because they allow me to earn points on everyday purchases. These points then get me cash back or airline miles for travel!

However, a credit card is only beneficial if you are 100% sure you can pay your balance every month. If you miss your payments, you’ll be losing money on late fees. 

Definitely talk to a financial advisor before applying for a credit card. 

Store credit and debit cards in a safe place

Cards, like cash, should always be locked away safely. But unlike cash, credit cards are tiny and are easy to keep on your person. 

I usually keep my cards in my wallet. If I’m just exploring for the day, I keep my cards in my day bag which I can see and have a hand on at all times. 

If I’m in transit, I keep my cards in an inner zipped pocket of my backpack or duffel bag. 

If you’re going out and not taking money with you, store your credit cards with your cash, passport, and other valuables in a locked safe or locker. 

Have a spending limit on your accounts

On the off chance that your credit or debit card does get stolen, it’s a good idea to have a spending limit on your account. 

That way, a thief won’t be able to spend too much of your money. 

If you only use the card for small daily purchases anyway, you can set the limit to a smaller number which can keep your money safer. 

Check your accounts often to look for fees or fraud

As I mentioned before, it’s handy to be able to access your bank accounts on your phone while traveling. 

This lets you keep an eye on your accounts!

Maybe your card has been stolen but you haven’t realized it yet. If you’re checking your accounts often, you can spot fraudulent purchases ASAP and let your bank know. 

So those are my top tips for how to exchange money abroad!

I hope that helps clear it all up for some people.

I also realize I mentioned theft and fraud quite a few times. These are not nearly as common as people might expect, but it’s still important to try and prevent them while traveling.

Personally, I have experienced ZERO theft or fraud in 10+ years of traveling.

Maybe it’s because crime is actually quite rare in the places I’ve been to. Or maybe it’s because I constantly think about how to keep my money safe and I’m a pretty cautious traveler.

Either way, don’t get hung up on the idea of theft or fraud while traveling. Enjoy your trip abroad and try to live in the moment!

But it definitely doesn’t hurt to do a little planning and preparation when it comes to money. Set up your bank accounts well and have safe places to store money while exploring in a foreign country. You should be fine!

For more travel tips, check out these articles:

How To Find The Cheapest Flights Abroad

How To Save Money For Travel – Top 19 Tips

Why I Always Use An eSIM For Travel

Moving Abroad In 14 Steps – Tips From Personal Experience

Budget Traveler’s Guide To Travel Insurance

15 Travel Essentials To Always Add To Your Packing List