The best way to manage money abroad; how to avoid foreign transaction fees, best card for international travel

We romanticize mountains and markets and magical sunrises, but we don’t talk enough about the less glamorous parts of travel: the quiet anxiety of standing in front of a foreign ATM, staring at the screen and wondering if your card will work, how much the withdrawal fee and exchange rate will be, or if you’ll even see your card ever again.

Back when I was a more reckless adventurous 20-year-old solo traveler, my financial strategy was… minimal. I’d exchange some cash before flying out, bring that, and cross my fingers it wouldn’t run out until the end of my trip.

I didn’t even bother activating my ATM card, because, if I’m being honest, there usually was nothing left to withdraw anyway.

But as I traveled more, and a few small mishaps reminded me how thin that margin was, I started adjusting and adding small layers of protection between me and what could potentially be a full-blown financial disaster.

This is what I do now.

Note: This post reflects my personal experience. I’m not a financial advisor, so please do your own research before making any decision. Some links may be affiliate links, which means I earn a small commission at no extra cost to you. I only recommend tools I personally trust.

Activate card for overseas use

I’ve realized I’m too clumsy to be carrying all my cash around with me. These days, I just bring enough for a few days and withdraw more as I go, or pay by card wherever I can.

But many banks require you to manually enable overseas transactions before your card can be used outside your home country.

This may sound obvious, but if you’ve never traveled abroad before, it’s not necessarily something you’d know. Or it’s one of those things that simply slips your mind in the chaos of packing and airport goodbyes.

Some people like to keep this feature enabled permanently for convenience. Others prefer to toggle it off when they’re not traveling.

Whatever you decide, just remember to double-check before your trip that overseas usage is enabled, including for online transactions and ATM withdrawals.

Also, don’t leave this until you’re at the boarding gate. In some cases, activating overseas usage can take time to take effect, sometimes up to 24 hours, as part of the bank’s fraud protection measures.

Have banking apps ready

I know, I know — nobody wants to download yet another app. But if you don’t already have it, setting up  your banking app on your phone before you travel is absolutely worth it.

Most modern banking apps allow you to:

• Check balances
• Get real-time transaction notifications
• Set daily spending caps
• Set ATM withdrawal limits
• Freeze or unfreeze your card instantly
• Pay bills
• Send and receive money

I like that I can take care of home financial matters, like paying bills, all in one place even when I’m on the road. It also makes tracking expenses much easier without having to hoard physical receipts.

Again, depending on your bank, activating the app for the first time can involve extra steps like verifying at an ATM or entering a one-time password sent to your phone. It’s much easier to sort all that out at home before you leave.

Use 2-factor authentication and biometrics

I already use two-factor authentication and biometrics on my banking apps (and phone) as a general rule. That way, if my phone is lost or stolen, which has happened twice, my money isn’t immediately at risk.

Biometrics also makes logging in easier on the road — I don’t need to remember long passwords or worry about someone seeing me type them at a café.

If you haven’t set that up yet, it’s really worth considering before you travel.

Set spending limits for safety

I always have spending limits on my cards, even at home, but it’s especially important when I’m traveling.

When your daily spending limit is reached, the card automatically stops any further transactions for the day.

This does two jobs at once.

First, it keeps my spending in check. When I set a limit, I can’t just happily tap my way into bankruptcy.

Second, if my card details were ever compromised, the loss would be capped. That knowledge alone makes me less anxious about using my card in unfamiliar places.

Of course, you can always adjust this limit to suit your needs, but most of the time it’ll require a two-factor authentication. Just keep in mind that, depending on your bank’s policy, the change might not take effect instantly.

Never rely on one card

No matter how developed or safe a country seems, sometimes ATMs just malfunction and decide to swallow a card for fun. Or my own foggy brain and clumsy fingers simply fail me and I somehow lose my wallet.

So now I always travel with:

• One primary spending card that’s not attached to any bank account (more on this later)
• One bank card for emergencies, kept somewhere safe
• A small amount of local currency
• Emergency cash

And I keep them in different places. If my wallet disappears when I’m traveling, which has happened once, I don’t lose everything. If my bank freezes my card, it’s just an inconvenience rather than a crisis.

Use a multi-currency card for daily spending

So what is this daily spending card I’ve been hinting at?

It’s an international spending card you can reload as you go. You use it just like a debit card — to pay at shops, online, or even to withdraw cash at an ATM.

What’s even better, you can convert your money into more than 40 different currencies in the app and hold them in your card. This means you can skip most money changers and their ridiculous rates, and you’ll pay very low ATM withdrawal fees compared to traditional banks.

And because it’s not tied to my main bank account, it reduces a lot of that travel-anxiety tension. Now I can leave my real bank card tucked safely at home and not worry about taking it in and out of my purse every time I buy a coffee or hop on a metro.

It’s called the Wise card. I’ll write more about it and link it here when it’s ready.

Separate travel money from main savings

Before departure, I allocate a set amount of money for the trip. That becomes my travel budget. I move a portion of it into my Wise account and keep the rest in my bank account, ready to transfer when I need it.

This allocation creates a psychological boundary, so that I don’t swipe blindly or have to worry about my long-term savings.

If I overspend one week, I can rebalance the next.

Always choose to pay in the local currency

If you’ve ever paid by card abroad, you’ve probably seen the prompt:

“Would you like to be charged in your home currency?”

At first, I genuinely didn’t know if it made any difference at all. Paying in your home currency sounds reassuring because it’s a currency you’re familiar with.

Then I found out that this is called “dynamic currency conversion”. The merchant or ATM sets the exchange rate, and it’s usually worse than letting your card provider handle the conversion.

So, choose to be charged in the local currency every time.

Avoid airport money changers unless absolutely necessary

Airport exchange counters are convenient, but they are rarely generous.

Usually I’d already have changed some money before leaving home. But if I haven’t, and there’s no ATM at the airport, I’ll exchange just a small amount there, only enough to get myself into the city. After that, I either withdraw from a local ATM or use my card for most transactions.

The difference in exchange rates might seem small. But over multiple trips, it can definitely add up.

Prepare for problems before they happen

If you’d like to be extra prepared, here are a few small steps that can make a big difference:

• Save important banking details, like the last four digits of your card (not the full card number), your bank’s customer service number, and any international helpline instructions.
• Make sure your phone number works overseas. Many banks send one-time passwords (OTP) via SMS to approve transactions or log into your account. If this applies to you, make sure your home number can still receive messages. Usually, this means enabling roaming for SMS or using a dual-SIM setup.
• Inform your bank of travel plans if required. Some banks automatically block foreign transactions as a fraud protection measure. If your card suddenly starts being used in another country, their system may assume it has been stolen and decline the payment.

If nothing ever happens, great. But if it does, you’ll be grateful you did.

Final thoughts

To me, managing money abroad is all about building small habits that make travel feel secure and stress-free.

Having a backup card, activating cards for overseas use, setting reasonable spending limits, and using an app to track transactions creates a sense of control that lets me focus on the trip itself.

With these simple routines in place, I can travel confidently, enjoy new experiences, and make memories without letting money worries take over.