Travel money guide

Traveling overseas involves a lot of planning — and that includes your money.

What is travel money?

Travel money, for lack of a better term, essentially means the options of credit cards, debit cards, prepaid cards and foreign currency — all designed for travel and foreign transactions. Each form of travel money has different pros and cons, so you’ll want to compare and contrast before choosing which’ll be best for you and your itinerary.

Compare travel money options

Compare the fees, convenience, rewards and more between prepaid travel cards, credit cards, debit cards and foreign currency while planning how you’re going to pay for food, souvenirs and other goods on your next trip.

How to decide which type of travel money is best for you?

Prepaid travel cards, credit cards and debit cards can all be effective ways to pay while you’re traveling. In fact, a combination of the three might be the safest and most convenient way to have all your bases covered. But the travel money you should embrace as your primary payment method depends on your situation:

Pick a credit card if…

• You travel frequently and want to earn rewards. Whether you’re a hotel fiend, a frequent flyer or just love earning cash back, a travel credit card can be the gift that keeps on giving — as long as you keep spending. Just make sure you have a plan for paying your balance in time.
• You want a safety net in case of emergencies. Even if it isn’t your primary payment method, keeping a travel credit card in your back pocket can help cover any unexpected expenses.

Pick a prepaid travel card if…

• You’re on a strict budget. A prepaid travel card can help ensure you don’t overspend, since you can only spend what you’ve already loaded onto the card.
• You want to lock in an exchange rate. Avoid unpleasant surprises by knowing exactly how much your US dollars are worth from the get-go.

Pick a debit card if…

• You plan on frequenting ATMs. If you like the feeling of cold, hard cash in your hands — or will be shopping at markets that only accept cash — you should consider a travel debit card that comes with zero ATM fees.
• You want direct access to your checking account. A travel debit card can be more convenient than a prepaid travel card, since you don’t need to preload money. It’s also ideal if you want to avoid racking up a credit card bill.

Travel credit cards

Browse travel credit cards to find an option with perks that match your travel style — just make sure you have a plan to pay it off.

Up to $300 cash bonus

Go to site on SoFi's secure site

• 0.50% APY on checking balance
• Up to 3.80% APY on savings
• $0 account or overdraft fees
• Get up to a $300 bonus with direct deposits of $5,000 or more

Earn 1% cash back

Go to site on Discover's secure site

• Earn 1% cash back on up to $3,000 in debit card purchases each month
• No monthly, overdraft or foreign transaction fees
• Get paid up to two days early with direct deposit

Disclaimer

Earn 1% cash back on up to $3,000 in debit card purchases each month. See website for details.

Free ATM transactions

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• $50 waivable monthly fee
• 0% foreign transaction fee
• Securely move money domestically and globally
• 5 monthly out-of-network ATM reimbursements
• Free international HSBC ATM transactions

Prepaid travel money cards

Prepaid travel money cards are great for budgeting, since you can only spend what’s already on the card — but that could actually be a drawback in the event of an emergency.

Travel debit cards

Many travel debit cards waive foreign transaction fees and ATM withdrawal fees, setting you up for an easy breeze experience — as long as you don’t overdraw your checking account.

Traveler’s checks

Traveler’s checks were once a widely used form of travel money, but they’re going the way of the dinosaur. You can weigh up whether they’re worth your time below — but we’d advise looking elsewhere.

Comprehensive guide to using debit cards overseas

Foreign cash

Holding a certain amount of foreign cash provides you with convenience and payment flexibility. Some stops on your destination may be cash-only and having extra on you can provide a smooth transition to wherever your destination may be.

Knowing how the dollar has performed against foreign currency in the past few years and months will enable you to get the best exchange rate for your foreign exchange transaction. Our travel money guides will inform you on some of the ways to access cash and ATMs worldwide.

Is it safe to travel with cash?

Yes! In fact, it’s usually safer to travel with some cash than none at all — though you don’t need to take large sums along with you. To keep your cash safe while traveling, avoid keeping it all in one place. Instead, divide it between your suitcase, purse and other safe places so that if some gets stolen you still have backup cash.

Keep in mind that carrying more than $10,000 at a time could actually be a headache, since you’ll need to declare it on your customs form to explain why you’re traveling with so much money.

5 places to do a foreign currency exchange

The best place to exchange your foreign currency is at your bank or credit union BEFORE you travel.

1. Bank. Call your local branch beforehand to see if their services line up with what you need. Most nationwide banks, like PNC, offer competitive rates and no transaction fees.
2. Credit unions. Similar to banks, credit unions generally offer competitive exchange rates and limited or no transaction fees.

But if you’re already in a foreign destination, your best bet is to use a travel debit card to withdraw funds at an ATM.

3. Debit card. You should be able to withdraw cash from an international ATM with decent exchange rates and fees ranging from 1% to 3%.

Airport kiosks and currency exchange stores should only be used as a last resort.

4. Airport kiosk. After disembarking from the plane, you can exchange your currency at the airport. But fees are high and exchange rates will be less-than-favorable.
5. Currency exchange store. You can find exchange stories in most international cities, but again, the fees will be working against you.

Destination money guides

For your next international trip, plan ahead by knowing how much to bring, and which travel money option is best for you. Choose your destination to get the full guide:

Written by

Amy Stoltenberg

Writer

Amy Stoltenberg managed newsletters at Finder, gathering the best articles each week to help subscribers save money and stretch their hard-earned dollars. She also handles the Twitter account, dabbling in Instagram and Facebook too. When she's not on the computer, you can find her exploring Los Angeles with a good book in tow. She studied writing at Savannah College of Art and Design and has been featured on the Zoe Report. See full bio

Amy's expertise

Amy has written 12 Finder guides across topics including:

• Fashion
• Travel
• Online shopping

Co-written by

Kyle Morgan

Producer

Kyle Morgan is SEO manager at Forbes Advisor and a former editor and content strategist at Finder. He has written for the USA Today network and Relix magazine, among other publications. He holds a BA in journalism and media from Rutgers University. See full bio