In This article we show you how to avoid hidden costs while traveling by using the right credit card to save on ATM fees and bad exchange rates.

We’ve been traveling full-time since 2023 and have visited more than 45 countries during our travels. Along the way, we’ve learned how much little things like ATM fees and bad exchange rates can add up and eat into your travel budget. Over time, we tested different options, from local bank cards to prepaid travel cards, and found that smart choices really make a difference. In this guide, we’ll share exactly how it works and why it’s one of the most useful cards you can carry as a traveler.

Why ATM Fees Hurt Travelers

When you withdraw cash overseas, most banks charge:

A foreign transaction fee (usually 1–3%)
An ATM withdrawal fee (can be $5–10 per transaction)
A bad exchange rate, where the bank adds their own markup on top of the real rate

It might not sound like much at first, but if you travel for a few weeks and withdraw several times, you could easily lose US$50–US$100 just in fees.

The Problem with Bad Exchange Rates

Even if the ATM says “no fee,” you’re often still paying. Banks and money exchangers rarely give you the mid-market rate (the real exchange rate you see on Google). Instead, they add a hidden margin of 3–6%. This can be worse than paying an upfront fee.

How to Avoid These Hidden Costs

The best way to protect your money is to use a travel-friendly debit or credit card. These cards are designed for international use, giving you access to fair exchange rates and little to no fees. We use a Wise card for our travels.

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Our Favorite Travel Card: Wise

The Wise card takes the stress out of managing money abroad. You get the best exchange rate, fewer fees, and a simple way to spend in multiple countries without hassle. It helps us save money on withdrawals, transfers, and everyday payments abroad.

Real Exchange Rates
Wise uses the mid-market exchange rate, the same one you’ll find on Google. That means you don’t pay the hidden markups banks usually sneak in.
Low and Transparent Fees
Every time you convert or withdraw money, you see exactly what the fee is before you confirm. There are no surprise charges later on your statement.
Hold Multiple Currencies
You can keep over 40 currencies in your Wise account. This makes it super handy if you’re traveling across multiple countries in one trip. You can convert money in advance when the exchange rate looks good and avoid last-minute conversions.
Free ATM Withdrawals
Each month, you get a certain amount of free ATM withdrawals worldwide. This is a huge advantage, especially in countries where cash is still king.
Accepted Everywhere
The Wise card works like a normal debit card, so you can use it in shops, restaurants, and online. It’s also contactless, making payments quick and easy.
Budget-Friendly Travel
Since it’s a prepaid debit card, you can only spend what you load onto it. That helps you stick to your travel budget and avoid coming home to a big credit card bill.

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More Tips for Saving Money Abroad

Always decline “currency conversion” at ATMs and shops (choose “charge in local currency”).
Withdraw larger amounts instead of many small ones to reduce ATM fees.
Keep a backup card in case one gets blocked or lost.
Avoid Currency Exchange Counters
Let your home bank know about your travel plans. This avoids blocked cards and makes sure you can still withdraw if needed.
Most car rental companies don’t accept debit cards for the deposit. Make sure you have a credit card when renting a car
Check for the country you’re traveling to which local banks charge ATM withdrawal fees. We also share these banks in our packing lists.