The Ultimate Guide to Avoiding ATM Foreign Transaction Fees While Traveling
Foreign ATM fees can silently drain your travel budget. Learn the smartest strategies to avoid them — from picking the right bank to using partner ATM networks abroad.
Going abroad often requires using cash. Whether it's paying for transportation, shopping locally, tipping, or grabbing snacks along the way, having money in your pocket is essential. Although you can rely on international ATMs while traveling, some foreign banks tack on additional charges when you withdraw money.
ATM Fees to Consider When Traveling Internationally
Airfare and accommodations are typically a traveler's biggest expenses. Many don't consider banking fees when visiting another country. If you're making ATM withdrawals abroad, you may incur several fees at once:
- Foreign transaction fees
- International ATM withdrawal fees
- Currency conversion markups
- ATM operator surcharges
- Network processing fees
What Are Foreign Transaction Fees?
Foreign transaction fees occur when you use your bank outside of your home country or pay with a foreign currency. The issuer can be your bank, the ATM operator, the payment network, or another third-party involved in the transaction.
ATM Operator Surcharges Explained
ATM operators often charge bank customers a separate fee to use their ATM. Depending on the country you're in, you might see this fee before you make your transaction at the ATM.
| Country | Average Fee Range | Ways to Avoid |
|---|---|---|
| USA | $2 - $5 | Use partner bank ATMs |
| Europe | €2 - €6 | Compare ATM fees |
| Asia | $1 - $4 | Opt for local bank ATMs |
| Australia | AU$2 - AU$5 | Seek fee-free ATMs |
How Currency Conversion Fees Work
Unlike ATM fees that are typically posted upfront, currency conversion fees are often hidden because they're wrapped into the exchange rate instead of provided as a separate line item. Currency conversion fees can cost you more than the actual ATM fees that are visible.
Dynamic Currency Conversion
Some ATMs offer you the option to withdraw local currency or your home currency. While it might seem nice to see withdrawals quoted in your home currency while traveling, you could be charged extra. Opting to withdraw funds in your home currency will often receive a less-than-favorable exchange rate. Your best bet is to withdraw using the local currency.
Pick the Right Bank Before You Leave
Before you go on your next adventure, research banks that offer travel-friendly accounts. Having the right bank account can save you money on ATM withdrawals while traveling abroad. Some qualities to look for in a bank include low international transaction fees, ATM fee reimbursements, low foreign exchange rates, and a wide international ATM network.
Withdraw More Money at One Time
Every time you use an ATM, you could be charged fees by your bank and the ATM operator. If you're making smaller withdrawals more frequently, you might be spending more on fees than you realize. Try to limit your transactions and withdraw a larger amount of cash. Just be sure to withdraw enough so you aren't visiting ATMs frequently either.
Use Partner Bank ATMs
Most banks have an array of international partners. These banks typically have agreed to work with each other to provide their customers with easier access to ATM networks. Not only will you have access to more ATMs when traveling, but you may avoid certain fees by using an ATM that's associated with your bank's partners.
Compare ATM Fees
ATM fees can vary from operator to operator. So, if you're in a city with multiple ATM operators, take a few minutes to compare your options. You could save yourself some money by comparing your options before you choose an ATM to use.
Use a Combination of Card & Cash
While you don't want to travel with a bunch of cash on you, you might want to have some on hand. Depending on where you travel, you may not always be able to pay with a card. You'll minimize ATM withdrawals and still have cash on hand for emergencies.
Track Your Spending
Keep track of your transactions when traveling abroad. That way, you'll know exactly where your money is going. Plus, you'll be able to spot foreign transaction fees that you weren't expecting. Many banks offer mobile apps that allow you to track your spending.
Develop Smart Money Practices While Traveling
Avoiding foreign ATM fees doesn't just involve looking for the ATM with the lowest fees. There are several factors to consider when using an ATM abroad. By planning ahead and comparing your options, you can save money on foreign ATM fees. You'll have more to spend on experiences you enjoy instead of spending it all on banking fees.