The first time I withdrew cash from an ATM in Thailand, I paid $12 in fees on a $200 withdrawal. My bank charged a foreign transaction fee. The ATM charged its own fee. And I'd unknowingly selected "convert to home currency" at the ATM prompt, which added a terrible exchange rate on top of everything. Six percent of my money, gone, before I bought a single thing.
That was an expensive education, but it only happened once. Since then I've traveled through about thirty countries and I've gotten pretty good at not losing money to unnecessary fees, scams, and confusion. Most of this is simple once you know it, but nobody tells you the first time.
The Card Situation
Before you travel, get the right cards. This single step saves more money than anything else on this list.
Wise (formerly TransferWise) is the closest thing to a universal travel card. You can hold and convert between dozens of currencies at the real exchange rate (the mid-market rate, not the marked-up rate banks use). ATM withdrawals are free up to a monthly limit, and card payments charge no foreign transaction fees. I've been using Wise as my primary travel card for years and it's saved me hundreds.
Charles Schwab debit card (US travelers) refunds all ATM fees worldwide, including the fee the foreign ATM charges. No foreign transaction fees. If you're American, this is the gold standard for travel debit cards.
Revolut offers similar benefits to Wise with some additions -- metal cards, crypto, insurance bundles. The free tier has ATM withdrawal limits; the paid tiers are generous.
Whatever you use, bring at least two cards from different networks (Visa and Mastercard). Some countries or specific ATMs only accept one or the other. Having a backup isn't optional -- it's essential. I've had cards randomly blocked by fraud detection while abroad, and having a second card meant the difference between buying dinner and a stressful phone call with my bank.
Before you leave: notify your bank of your travel dates if you still use a traditional bank card. Fraud detection systems will freeze your card at the worst possible moment otherwise.
ATM Strategy
ATMs are almost always the best way to get local cash. Better exchange rates than airport currency counters, more convenient than carrying large amounts from home.
But ATM fees vary wildly. Here's how to minimize them:
Always decline the ATM's conversion. When the screen asks "withdraw in your home currency?" or shows a conversion rate, always choose the local currency option. The ATM's conversion rate includes a markup of 3-7%. Your bank's rate (or Wise/Revolut's rate) is almost always better.
Use bank ATMs over independent ones. Those standalone ATMs in tourist areas (Euronet is a notorious example in Europe) charge higher fees and push their own terrible exchange rates. Walk the extra block to a real bank's ATM.
Withdraw larger amounts less frequently. If there's a fixed fee per withdrawal, taking out $300 once is cheaper than $100 three times. Adjust based on safety -- don't carry more cash than you're comfortable losing.
Check your daily limits before you travel. Your bank might have a lower limit for international withdrawals. You can usually request an increase online or by calling.
Currency Exchange: Where and Where Not
Airport exchange counters are almost always the worst option. The rates are terrible and the fees are high. If you need cash immediately upon arrival, withdraw from an airport ATM instead.
Hotel exchange is bad. Street exchange is dangerous and potentially illegal. Tourist-area exchange shops are generally poor but occasionally competitive -- if you must use one, compare rates from multiple shops.
Local bank branches sometimes offer reasonable exchange rates for cash-to-cash, especially in countries where ATM access is limited.
The best strategy in most countries: withdraw local currency from ATMs using a no-fee card. That's it. It's simpler and cheaper than carrying your home currency and exchanging it.
Cash-Heavy Countries
Some countries still run primarily on cash: Japan, Germany (surprisingly), Morocco, much of Southeast Asia, and most of Sub-Saharan Africa. Research this before you arrive. In Japan, I watched a fellow traveler discover that his card was useless at restaurants, small shops, and even some hotels. He spent his first day looking for ATMs instead of exploring Kyoto.
In card-friendly countries (Scandinavia, South Korea, Australia, UK), you can go weeks without touching cash. But even there, having a small amount for markets, tips, and emergencies is smart.
Tipping, Country by Country
Tipping is one of those things where getting it wrong is embarrassing in both directions. Over-tipping in Japan is awkward. Under-tipping in the US is rude. Here's a rough guide:
US and Canada: 18-20% at restaurants. Always. This is effectively mandatory -- servers depend on it.
Europe: Generally 5-10% at sit-down restaurants, sometimes just rounding up. In many countries, service is included in the price. Check the bill.
Japan: Don't tip. It can actually cause confusion or offense. The price is the price.
Southeast Asia: Small tips (1-2 dollars equivalent) are appreciated at restaurants, for drivers, and for guides but not expected. Leaving change is fine.
Middle East: 10-15% at restaurants is standard. Tips for service providers (hotel staff, guides) are customary.
Latin America: 10% at restaurants is common, sometimes included in the bill as "servicio." Check before adding more.
Australia and New Zealand: Tipping is not expected but appreciated for exceptional service.
When in doubt: Ask a local or your hotel. People are happy to tell you the norms, and asking shows respect rather than ignorance.
Splitting Bills and Paying Friends
If you're traveling with others and splitting costs, Splitwise tracks who owes what across multiple currencies. It's free and eliminates the awkward "who paid for what" conversations.
Wise and Revolut both allow instant free transfers between users, which makes settling up easy.
PayPal works but charges fees for currency conversion. Venmo only works within the US. Apple Pay and Google Pay work internationally for contactless payments but not for person-to-person transfers across borders.
Scams to Watch For
The "broken" ATM. You insert your card, the machine "malfunctions," and nothing happens. You walk away. Someone retrieves your card (or your card data) from a skimming device. If an ATM behaves strangely, cancel immediately and try a different machine. Wiggle the card slot before inserting -- skimmers are usually loose.
Dynamic currency conversion. I mentioned this above, but it's worth repeating because it's technically legal theft. Any time a merchant or ATM offers to charge you in your home currency "for your convenience," they're applying a markup. Always pay in local currency.
Fake currency. When receiving change, especially large bills, glance at the money. Counterfeit bills are common in some countries. Knowing what the local currency looks like (check online before arrival) helps.
The slow count. In countries where bills come in similar colors or sizes, some merchants will count change back slowly, hoping you'll walk away before they've finished -- and short you. Count your change. Every time.
Inflated prices for tourists. This is most common at markets and with taxi drivers. Learn the approximate cost of common items and rides. Even basic research ("how much is a taxi from the airport to downtown in Bangkok") saves you from paying double.
Emergency Money
Carry a backup stash of US dollars or euros -- 100-200 in cash, hidden separately from your wallet. Not in a fanny pack (pickpocket target), not in your main bag. A money belt, a hidden pocket in your backpack, or inside a sock in your luggage.
This money is for emergencies only: lost wallet, frozen cards, medical situations. In most of the world, US dollars or euros are accepted informally or easily exchanged.
Take a photo of your cards (front and back) and store the images in a secure, encrypted app or email them to yourself. If your cards are lost or stolen, having the numbers speeds up replacement.
The General Rule
The simplest approach to travel money: get a no-fee travel card (Wise is the easiest starting point), withdraw cash from bank ATMs in local currency, keep a small emergency stash in dollars or euros, and always decline the ATM's currency conversion.
That's really it. Everything else is details. The people who lose money abroad are almost always people who didn't set up the right card before leaving, and who said "yes" when the ATM offered to do them a favor. Once you fix those two things, money abroad is straightforward.
