Paying abroad without losing money on fees
Between conversion fees, ATM charges and the card terminal trick, a two-week trip can shed a hundred euros you never needed to pay.
The card terminal trap
When you pay by card outside the eurozone, the terminal sometimes offers to charge you in euros rather than the local currency. It sounds convenient and it's a bad deal: the merchant applies its own exchange rate, always worse than your bank's. **Always choose the local currency.** Same at cash machines. This alone saves a meaningful percentage of everything you spend.
Currency conversion fee
Many traditional cards charge a percentage on every purchase made in another currency. It isn't huge per transaction, but across a whole trip it shows. Check your card's terms before you leave: it's in the contract, and a call to your bank clears it up in five minutes.
ATM withdrawal fees
This is where it hurts most. There are usually two charges: your bank's and the local machine's, which sometimes warns you on screen and sometimes doesn't. The strategy is to withdraw rarely and in larger amounts, rather than twenty euros every other day.
Fee-free cards
There are travel-oriented accounts and cards that don't charge currency conversion fees and allow a number of free withdrawals per month. Compare the terms before opening one: free limits and out-of-limit fees vary a lot. And check the card works in your destination country.
Carry two cards
From different banks, stored separately. It's the dullest advice and the most useful: if one gets blocked for suspected fraud, or you lose your wallet, you're not stranded. Also tell your bank your dates and destination, since many block cards on detecting foreign spending.
How much cash
It depends heavily on the country. Across much of Europe you can manage almost cashless, but rural areas, markets and local transport still need it. Take some local currency for the first few hours and withdraw the rest from a bank ATM, not the standalone airport machines, which apply the worst rates.
Never change money at the airport
Airport and tourist-district exchange bureaus offer the worst rates you'll find. If you need cash on arrival, a local bank's ATM is almost always better.
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