MoxieLifestyle.net

While traveling abroad, having cash on hand is always important. The convenience of being able reserve rooms in hostels, or pay with a credit card though, is unparalleled; not to mention carrying a credit card is safer than carrying a wad of cash on you.

You have to be careful though, because most credit card companies are going to hit you with a fee every time you use their card internationally and they have to convert the currency. For example, MasterCard and Visa, charge a 1% “currency conversion fee” for each foreign purchase. On top of that the card issuer adds on an additional fee.

So right now, you are most likely getting hit with about a 3% fee every time you use your credit card abroad.

Here is a link to a great chart that lists different banks and what they charge. Find out what your current credit card is charging you and if need be, get a new card. There are a few banks that will waive all fees, making a foreign purchase the same as a local one. If you’re traveling long term, it might be a good idea to go with one of those banks.

I recommend a Capital One and their No Hassle Miles Rewards card. Capital One doesn’t charge you a fee and they also don’t pass on the 1% fee from Visa and MasterCard. Plus over time the bonus miles can add up to a free plane ticket.

Look at it like this, if you are spending $2000 a year internationally, and you get charged 3% of that, that is $60 which is a good 10 or so meals. We are trying to travel cheaply and every bit counts.