Withdrawing cash abroad often triggers two separate fees: your own bank's foreign transaction or out-of-network fee, and a surcharge from the ATM's operator. Add a poor currency conversion rate on top, and a $100 withdrawal can effectively cost $110-115.

The fix most people overlook

Several online banks and credit unions offer checking accounts specifically designed for travelers, refunding all ATM fees worldwide and charging no foreign transaction fee. Opening one of these before a trip — even just to hold travel cash — can eliminate nearly all withdrawal fees.

Always choose to be charged in the local currency

When an international ATM asks whether to convert the amount to your home currency before completing the withdrawal, decline it. That conversion option (dynamic currency conversion) almost always uses a worse exchange rate than your card network's own conversion.

Other ways to cut travel banking costs

  • Withdraw larger amounts less frequently to reduce the number of flat per-transaction fees.
  • Use bank-branded ATMs (partner networks) where your bank has fee-free agreements abroad.
  • Notify your bank of travel dates to avoid a security freeze interrupting access to cash.
  • Carry a no-foreign-transaction-fee credit card as a backup for purchases, saving cash withdrawals for smaller needs.