PTM Travel Tips //
Minimizing International Fees while Abroad…

When planning an international trip, everyone knows that things add up pretty quickly. With the economy in near recession at the moment the Dollar as a currency has never been worse. Knowing this, I’ve done a lot of research on this topic and I figured I’d share a few tips with you on how you can actually save money while you’re overseas.

The fees that I’m talking about are Banking Fees such as ATM Fees, Fees on International Purchases, Currency Conversion Fees and more. After you add all these fees up, depending on how long you’re planning on traveling, or how lavish you decide to live on your trip they can add up to hundreds, maybe even thousands of dollars (if you’re living like a king). Wouldn’t you rather take that money and use it to pay for a few extra nights stay at a nice hotel at the end of your trip, an unforgettable paragliding experience in Austria, or maybe you could use that extra money you saved to pay for a few souvenirs and gifts to bring back to the folks back home.

If you are currently a Bank of America customer and you’re planning on using your ATM/Debit card abroad, STOP! Have you weighed out your options yet? It’s something you should really think about. Did you know that you could be charged 3% on transactions? Yep, a 2% Foreign Currency Transaction fee and and since Bank of America is VISA, (Visa & Mastercard charge a mandatory 1% Foreign Currency Conversion charge). So that’s three percent each and every time you use your card!

Now if you’re just planning on taking cash out of an ATM while abroad with your Bank of America ATM/Debit card, you will be charged a $5.00 fee from Bank of America on top of 1% of the amount withdrawn. The only way you can get these fees waived is if you find a Global Alliance ATM machine. Now who wants to go running around a city trying to find an ATM that BOA has an alliance with? Nobody! Like myself, you want the convenience of using an ATM that is closest to your accommodations or an ATM that is right in front of your eyes when you need it without having to worry about how much money BOA is taking from you each time you withdraw some money. Some people say, well I’m just going to withdraw large amounts of money each time I’m at an ATM. Well, good luck walking around with a few hundred dollars in foreign currency in your pockets. It’s up to you!

Your other choice, which is a choice that I made about a month and a half ago was to sign up for a Charles Schwab Investment Checking Account. Not only am I earning 3.01% APY on this checking account, but it gets better! Way better! If you choose to open an account with Charles Schwab, you will be able to travel with absolutely no worries at all when it comes to international purchases, withdrawing money from any ATM you choose, and more because with Charles Schwab, there are NO INTERNATIONAL FEES assessed to your account. Any fee that you are charged at an ATM during your travels is reimbursed at the end of each month! You will see the normal fees charged to your account in your statement each time you withdraw money, make a purchase at a store, etc. But, have no fear those fees will be reimbursed 100%. As the Client Representative said to me today, “In laymen’s terms, Charles Schwab eats all international fees.”

Please note that there are very similar fees assessed to foreign credit card transactions as well. The only credit card company that I have found so far with NO INTERNATIONAL FEES is CapitalOne. As far as I know, they are the only company left that offers no international fees. Please let me know if I’m wrong. I’m looking into getting a Capital One credit card before I leave just for the security of having one. It’s always nice to have a backup plan!

For more information on the International Fees assessed by your bank please see BankRate’s Foreign Currency Chart.

Did you find this article to be helpful and/or interesting? If so, please feel free to leave a comment below or contact me!