Use the Card. Carry Some Cash. Never Let the ATM Do the Math.

You booked the flight. You found somewhere to sleep. You may have even purchased an unnecessarily adorable travel-sized container for something you already owned.

Now we need to discuss money.

Not how to become wealthy.

I have no idea.

I mean how to pay for things in another country without having your card declined, carrying your entire trip budget in your bra, or allowing an airport currency-exchange counter to rob you politely.

This does not need to be complicated.

You need a good card, a backup card, a debit card, a little cash, and enough common sense not to accept financial advice from an ATM.

That’s basically it.

My Travel-Money Setup

I do not rely on one card.

Cards get declined. Banks get suspicious. Machines eat things. Wallets disappear. Technology occasionally decides it has done enough for the day.

My basic setup is:

• One primary credit card, preferably Visa or Mastercard, with no foreign transaction fee
• One backup card from a different issuer—and ideally a different network
• One debit card for withdrawing cash
• A modest amount of local currency
• Enough money available at home to deal with an actual emergency

Do not keep all of these in the same place.

If your wallet disappears and it contained every card and every euro you brought, you have not created a backup system. You have created one very efficient package for a pickpocket.

Keep your primary card and some cash accessible. Put the backup card and emergency cash somewhere else secure.

That way, one bad moment doesn’t become your entire vacation.

Use a Credit Card Most of the Time

For hotels, restaurants, train tickets, museum admission, and ordinary purchases, I usually prefer a credit card.

It’s convenient. I don’t have to carry much cash. I can see what I spent. If the card number is stolen, the thief is not reaching directly into the checking account that still has to pay my mortgage.

But before you leave, look for one extremely important phrase:

No foreign transaction fee.

Visa and Mastercard are payment networks. They do not automatically determine whether your particular card charges a foreign transaction fee.

That decision comes from the bank that issued the card.

A Visa with a three-percent foreign transaction fee is still a Visa with a three-percent foreign transaction fee.

Three percent may not sound like much. But paying an unnecessary surcharge every time you eat, sleep, shop, or buy a train ticket is a stupid little leak in the travel budget.

Check the actual terms for your actual card.

Do not assume.

When Cash Still Makes Sense

Cards are widely accepted in many destinations, especially in cities. That does not mean every business everywhere wants one.

Cash can still be useful for:

• Small independent shops
• Markets and food stalls
• Public toilets
• Small purchases where a card minimum applies
• Rural areas
• Older ticket machines
• Tips in places where cash tipping is customary
• The occasional restaurant whose card machine has mysteriously stopped working

The amount you need depends on the country and where you’re going.

A weekend in a card-friendly capital city is different from driving through tiny villages and stopping wherever something looks interesting.

I don’t want enough cash to finance the whole trip.

I want enough to get through a day if a card stops working.

Cash is a backup plan, not a personality.

The Cards That Aren’t Invited Everywhere

Visa and Mastercard are generally the safest choices for a primary travel card.

American Express is accepted in many places, particularly hotels, larger restaurants, and major retailers. But smaller businesses may not take it because of their merchant costs or payment setup.

Discover acceptance varies considerably by country and merchant. Check its country-specific acceptance information before the trip, but I would not make it my only card overseas.

This does not mean you must acquire seventeen credit cards.

It means you should avoid arriving in another country with one card from one network and complete confidence that nothing could possibly go wrong.

Bring a backup.

You may never use it.

That is exactly what you want from an emergency backup.

Who Do I Need to Tell I’m Traveling?

Possibly nobody.

Many banks and credit-card companies no longer require travel notices because their fraud systems use information such as your purchasing patterns and card activity.

Some issuers may still request or accept one.

Instead of automatically calling every financial institution you’ve encountered since childhood, check each card and bank account individually.

About a week before leaving:

• Open the bank or card issuer’s app
• Look for “travel notice,” “travel plans,” or “manage card”
• Confirm whether a notice is required
• Make sure your mobile number and email address are current
• Turn on transaction alerts
• Confirm you can receive security codes overseas
• Save the issuer’s international phone number somewhere other than your wallet
• Check the foreign transaction fee
• Check the foreign ATM fee
• Check your daily cash-withdrawal limit

Do this for your debit card too.

Even if your credit-card company doesn’t need a travel notice, your bank may have different procedures for debit-card withdrawals.

And please do not wait until you are standing beside an ATM in Prague to discover that your daily withdrawal limit is $200 and the machine wants a fee each time.

Figure this shit out from your couch.

Where Should You Get Cash?

Usually, from a bank-affiliated ATM after you arrive.

Look for an ATM:

• Attached to or located inside a recognizable bank
• In a well-lit, busy place
• Without suspicious attachments around the card slot
• With fees clearly disclosed before you finish the transaction

An ATM at an airport is not automatically terrible.

A bank-operated airport ATM may be perfectly reasonable, particularly if you need a small amount of cash upon arrival.

The airport currency-exchange counter is a different animal.

Why the Airport Currency Exchange Is Usually the Dumbest Option

The currency-exchange counter is extremely convenient.

That convenience is how it gets you.

Airport exchange businesses may give you a lousy exchange rate, charge a commission, build their profit into the rate, or accomplish all three while smiling helpfully.

The giant sign may say:

NO COMMISSION!

Wonderful.

That does not mean the exchange rate is good.

Businesses are not converting money in international airports as a public service.

If obtaining a small amount of currency before leaving makes you feel more comfortable, fine. Peace of mind has value.

But I would not exchange the entire trip budget at the airport.

Use a reputable bank ATM at your destination and withdraw a reasonable amount.

Then spend the money you didn’t hand to the exchange counter on something involving cheese.

Use a Debit Card at the ATM

A credit card may technically allow you to withdraw money from an ATM.

That does not mean you should.

Credit-card ATM withdrawals are generally treated as cash advances. That can mean a cash-advance fee, a higher interest rate, and interest beginning immediately.

Use your debit card for cash withdrawals.

Use your credit card for purchases.

There may still be fees. The ATM operator might charge one, and your bank might charge another.

That is why I would rather make one sensible withdrawal than seven tiny ones.

But I also do not withdraw an enormous pile of cash just to save a few dollars in fees.

There is a middle ground between:

“I paid another ATM fee because I needed twelve more euros.”

And:

“I am now carrying the entire gross domestic product of Belgium in my purse.”

Never Let the ATM Do the Math

This is the part people need to tattoo temporarily onto the hand they use to operate the machine:

Choose the local currency.

An ATM or card terminal may offer to convert the transaction into U.S. dollars for you.

It will use friendly language:

• See the amount in dollars
• Guaranteed conversion rate
• Accept conversion
• Lock in your rate
• Continue in USD

Decline it.

This is called dynamic currency conversion. It allows the ATM operator or merchant’s provider to perform the currency conversion using its own rate and possible additional markup.

You want your card network and bank to handle the conversion.

If you are in France, choose euros.

If you are in the Czech Republic, choose Czech koruna.

If you are in Scotland, choose pounds.

If the machine asks whether you want to be charged in dollars or local currency, choose local currency.

If it asks whether you accept its conversion rate, decline the conversion.

Sometimes the buttons are designed in a way that makes the expensive option look comforting and the sensible option look like you are recklessly rejecting financial security.

Stay strong.

The ATM is not your friend.

What to Look for Before Using an ATM

Most ATM withdrawals are entirely uneventful.

I still take a few seconds before inserting my card.

I prefer a machine attached to an actual bank rather than a freestanding ATM placed beside the world’s busiest tourist attraction.

I check whether anything around the card slot looks loose, crooked, or added on. I cover the keypad when entering my PIN. I do not accept help from the unusually friendly stranger who has appeared just as the machine becomes confusing.

If something feels wrong, I cancel the transaction and find another machine.

I also pay attention to the entire process.

Take the card.

Take the cash.

Take the receipt if you requested one.

Put everything away before wandering into the street while staring at your phone.

If a machine keeps your card, contact the bank operating the ATM and lock the card through your app immediately.

This is another excellent reason not to keep your backup card in the same wallet.

You have money.

You can access the money.

You have a backup way to access the money.

Now stop staring at the ATM and go find lunch.