Highlights:
- See which credit cards can save you fees, plus give you great travel perks
- How to avoid expensive ATM charges
- Why you should never pay in your home currency while travelling abroad
For many of us, a big part of living a “rich life” is traveling.
But nobody wants to get stuck with unexpected expenses just for accessing your own money!
When my friend messaged me asking for advice on how to save on foreign exchange fees for her upcoming trip to South Africa, I was all over it.
Hidden fees make your vacation more expensive
If you’re away for a couple weeks, you can easily spend hundreds of dollars on unnecessary charges.
Most credit cards tack on a foreign transaction fee of 2.5% to 3% every time you make a purchase in another currency. It adds up fast.
These fees are often buried in your credit card statement and labeled vaguely, so you may not even notice.
And you’re not getting anything extra by paying these fees: no points, no perks, no better exchange rate. It’s just money quietly leaking out of your travel budget.
The good news is that with a little prep, these fees are avoidable. We’ll cover how to sidestep them.
First, what fees can you be charged?
Here are the most common ones to look out for:
Foreign transaction fees - Typically 1% to 3% added to every purchase made in a currency other than your own
ATM withdrawal fees - You may be charged by both your home bank and the foreign ATM operator
Dynamic currency conversion (DCC) - When you're offered to pay in your home currency instead of the local one, often at a bad exchange rate with hidden markups
Out-of-network ATM fees - Extra fees for using machines that aren't part of your bank’s international partner network
These charges might seem small individually, but they can add up fast over the course of a trip. (Trust me, I know!)
Use the right credit card
This is one of the easiest ways to avoid extra charges while traveling.
Most credit cards add a 2.5-3% fee on purchases made in a foreign currency, but some travel-focused cards waive this fee entirely.
Look for a card that advertises "no foreign transaction fees".
Plus, you might get extra perks like travel rewards, upgrades, insurance, or lounge access!
It’s easy to cover the cost of the card in what you’ll save at the airport by eating and drinking at airport lounges for free - so it basically pays for itself.
Here are some cards to look into:
🇨🇦 Scotiabank Passport Visa Infinite
Find a card that refunds ATM fees
Withdrawing cash while abroad can rack up more fees than you expect.
This is especially important if you’re traveling where cards aren’t readily accepted, so having cash on hand is essential.
The good news is that there are debit and prepaid cards that either waive or refund these ATM fees.
For Canadians:
Wealthsimple Card - This prepaid Mastercard links to your Wealthsimple chequing account. No foreign exchange fees and limited ATM fee refunds. Plus, earn up to 2.75% interest on your chequing account balance
EQ Bank Card - No FX fees, competitive exchange rates, and free ATM withdrawals. You get 0.5% cash back on everything you spend
Wise and Scotiabank have cards that are in the Global ATM Alliance (over 30 countries) to avoid fees when withdrawing from ATMs within the network
For Americans:
Charles Schwab Investor Checking Account - Refunds all ATM fees worldwide and has no foreign transaction fees
Fidelity Cash Management Account - This high-interest account reimburses ATM fees globally
Wise is part of the Global ATM Alliance, so you can avoid fees in 30 countries when withdrawing from ATMs within the network
Many major credit unions and online banks also offer travel-friendly ATM access, so check your account before you go.
What if you don’t want to get another card?
Maybe you don’t want to go through the hassle of opening a new account. I get it!
In this case, minimize your withdrawals by taking out larger amounts less frequently to reduce your fees.
You’re better off visiting bank ATMs instead of private ATMs (like Euronet or Travelex) since these charge higher fees and have worse exchange rates.
Get local currency ahead of time
One of the best ways to avoid fees is to get cash before you travel.
Even if you plan to use cards for most of your trip, a bit of local currency in your wallet gives you flexibility, and can save you from stress or fees.
Many card-friendly destinations still prefer cash for some things - like taxis, markets, small cafes, and tipping.
Order cash through your bank - Especially for rare currencies, you may need to order ahead of time. Some banks let you place an order online.
Visit a currency exchange - These either offer the best or worst exchange rates, so shop around.
🇨🇦 KnightsbridgeFX consistently offers some of the best exchange rates, and promises to beat any bank’s rate
🇺🇸 CXI has competitive rates, carries 80+ currencies, and offers flexible pickup and delivery options
Do NOT visit an airport currency exchange - These are the highest rates. If you’re already at the airport, you’ll probably get a better rate if you wait until you’ve landed at your destination.
Cover all your bases
You can pick just one, or cover all 3:
➜ Get cash from an affordable currency exchange
➜ Have a bank card that lets you pull money out without ATM fees
➜ Use a credit card that has no foreign exchange fees
For example, you could have cash from KnightsbridgeFX, a Wise card, and a Scotiabank Passport Visa Infinite credit card.
Keep growing your money once you’re home
Now let’s use that money you saved on unnecessary fees!
With Passiv, you can invest smarter, automate your portfolio, and make sure your money keeps working for you - whether you're on the beach or back at your desk.
It connects directly to your brokerage and makes it easy to stay on track with your long-term goals, without the hassle of spreadsheets or manual rebalancing.
