The best* debit card for traveling overseas

The best checking accounts for international travel offer fee-free foreign transactions, so look for an account that offers low foreign transaction fees.

Best debit cards for overseas travel

What happens when you use your debit card overseas

When you use your debit card overseas, or while shopping at an overseas store, you’ll generally pay for extra fees.

• For purchases

  Your chequing account will usually charge a foreign transaction fee when you purchase something in a foreign currency. You may also have to pay a margin on the exchange rate, which means that your bank sells you foreign currency at a higher price than you’d pay elsewhere.

  Debit card readers in stores and hotels can often detect that you’re using a card from another country, and they may ask to debit the purchase in CAD dollars rather than the local currency. While this can help you save on foreign transactions fees, it often means you’ll pay a significantly worse exchange rate, and it’s generally the more expensive option.

• For ATM withdrawals

  Avoid making frequent ATM withdrawals while traveling. Even if you have an account that does not charge for you for international ATM withdrawals — local operator fees still apply.

  Your normal bank account will usually charge the following fees: foreign ATM fee, foreign transaction fee, exchange rate markup and, in most cases, the ATM itself will charge a third-party fee. These fees can make withdrawing money at a foreign ATM very expensive.

  • Tip. If your card doesn’t waive ATM fees, save by taking out the maximum amount each time you withdraw.

What are the benefits and drawbacks of using a debit card while traveling?

Alternatives to using a debit card overseas

If you want to avoid relying on a debit card while travelling abroad, there are a few other options to consider:

• Send a money transfer to loved ones in your destination country. There are many online money transfer services that support sending money internationally in a wide range of currencies. If you’re visiting friends or family, consider sending them funds in the currency you intend to spend. When you arrive, they can withdraw the money from their accounts or arrange for a cash pickup.
• Use a credit card. Charge expenses to a travel credit card with no foreign conversion fee. You can avoid putting yourself at risk by carrying cash on your person, plus you can earn travel rewards that can be applied to your credit card bill or your next trip. By charging travel costs to your card, you may also be able to take advantage of complimentary travel insurance for lost baggage, flight delays, medical emergencies and other contingencies. Note that credit cards come with different terms and rewards, so compare your options carefully before applying for your next card.
• Load funds onto a prepaid travel card. Prepaid travel cards are much like debit cards in that you only spend the money you have. There is no credit involved. However, unlike debit cards prepaid cards don’t draw funds directly from your bank account. Instead, you withdraw or transfer funds from your bank account and load up your prepaid card. See what types of prepaid travel cards your bank offers, or check out the Visa Travel Card, which can be used anywhere Visa is accepted worldwide.
• Traveler’s cheques. These used to be one of the most popular options, but they’re quickly fading from favor. While each cheque comes with a unique number and it’s not difficult to replace if lost, the bulkiness of carrying around multiple cheque does not work in their favor. In addition, you have to cash these cheque before you get access to funds.

Travel money options

What should I consider?

Before you open a new travel-friendly chequing account with a debit card, consider the following:

• International ATMs. Check if the bank is part of the Global ATM Alliance, a group that allows account holders to use international ATMs with no added fees.
• Travel insurance. Some debit cards come with complimentary travel insurance that comes in handy if you lose or misplace luggage or are confronted by a medical emergency or flight cancellation.
• Travel rewards. Visa and Mastercard debit cards give cardholders access to a range of special global offers and promotions.
• International money transfers. Check what options the account has for transferring money overseas — and how high the fees are.
• Zero liability. Some cards — like Visa and Mastercard — have zero liability policies in place, so that you’re not held liable in the case of fraudulent or suspicious transactions. You should always notify your bank when you plan to leave the country. This way they can expect purchases from abroad.

What happens if I think my account has been scammed overseas?

If you think you’ve been a victim of fraud, contact your bank or card issuer immediately to cancel the card and begin the process of recouping any lost funds.

How do I send funds to someone overseas?

Check what options the account has for transferring money overseas — and how high the fees are.

How do I link a debit card to a PayPal account?

Bottom line

Use a globally accepted debit card to gain access to your money without the temptation of overspending. The fees and rates that come with using your card will vary, so compare your options to ensure the cost doesn’t outweigh the benefits.

Frequently asked questions

• What should I do if I lose my debit card when traveling overseas?

  If you lose your Mastercard or Visa debit card overseas, you can call and report to a representative. You can also call the local toll-free number, which would vary depending on the country you’re in.

• What information do I need to initiate an international transfer using my bank account?

  You’ll have to provide the recipient’s complete name and address, the recipient’s bank’s name and address and bank account number, along with the amount you wish to transfer.

• Do I have to pay any ongoing fees to use a debit card when overseas?

  Using a debit card when overseas does not attract any additional account keeping fees.

• Can I use chipped cards when traveling to other countries?

  Yes, chip cards are generally widely accepted around the world.

• Can I still access Canadian bank websites when overseas?

  Yes, in most cases you’ll be able to access your internet banking account from just about anywhere in the world. Speak to your bank about accessing your money overseas before you begin your journey just to be sure that your funds will be available whenever you need them.