Best Bank Account Features for Travelers

Although we usually think of credit cards when we consider travel rewards, some debit cards also pay rewards. Shutterstock

For some people, taking a trip abroad is the dream of a lifetime, while others are seasoned travelers. But traveling is more than sightseeing and fine dining; there’s the financial aspect as well, and your bank should cater to your traveling needs.

But what are those needs? Unfortunately, not every bank is set up for international travelers. It’s important to know what you need ahead of time and ensure you'll be receiving it when you’re on the road.

No Foreign Transaction Fees

If you find charges on your debit or credit card when you return from your trip, they might be foreign transaction fees. They occur when you purchase an item or service abroad in a currency other than the U.S. dollar.

Most banks or credit cards charge 1–3 percent of the total purchase price. If you make enough purchases, these fees can add up quickly.

For example, if you travel to Asia and make a $4,000 purchase at a 3 percent surcharge, it will cost you $120 in fees.

Many people confuse a transaction fee with a currency conversion fee. A currency conversion fee is a fee charged when you ask the retailer to present the transaction to you in dollars.

For example, if you buy an item in Budapest that costs 40 euros, the merchant’s point-of-sale terminal will give you the option of paying for the item in dollars. Let’s say the cost of the item converts to $44; you will be charged a 1 percent conversion fee to do that conversion. You save money by paying for items in the local currency.

As a side note, if you buy an item online from a non-U.S. retailer, you could also be charged a surcharge on your debit or credit card for the same reason.

Should You Use Cash Instead of Debit Cards?

Converting U.S. dollars into local currency can cost extra. Whether you go to an airport kiosk or an international ATM, you'll need to pay extra for the exchange of currency.

But check with your bank. Some have low conversion fees or none at all. Others have partnerships with foreign banks, and they won’t charge you for using their ATMs. Your bank also might reimburse you for fees from foreign ATMs.

Travel Rewards for Debit and Credit Cards

Although we usually think of credit cards when we consider travel rewards, some debit cards also pay rewards. They offer travel points and miles.

One card is the Truist (formerly SunTrust) debit card, which is currently the most well-known debit card. With this card, you can earn Delta SkyMiles on any purchase.

Free International Wires

Wire transfers cost, but if you need money quickly, a friend or loved one might have to wire money to you.

Banks charge different fees, so check with your bank to see the charges. Typically, an outgoing international fee is $35 to $50 and is charged to the sender using a non-U.S. bank.

An incoming international wire transfer generally costs zero to $30 and is charged to the recipient of an incoming transfer from a non-U.S. bank.

Domestic wire transfer fees are generally less than $30.

Minimizing Wire-Transfer Fees

There are some ways to minimize or eliminate the transfer fees. One way is by choosing the right bank.

Some banks offer checking accounts with free incoming and outgoing transfers. Two such banks are Chase Private Client Checking and Chase Sapphire checking accounts.

Citibank also waives transfer fees, but you must have a Citigold Private Client account.

Private banking clients and businesses might be able to negotiate wire transfer fees.

Student bank accounts often waive transfer fees. For example, Wells Fargo offers a refund for incoming wire transfer fees once per month for everyday checking accounts linked to a Wells Fargo Campus Card. This is a student’s checking account.

You could send money through an automated clearing house transfer between bank accounts, but you won’t receive your money immediately; it can take several days for the money to show up in your account. They usually don’t require fees.

One of the best ways to do this is to use Zelle if the two banks participate in that program. Zelle sends money directly from one account to another. Both accounts must be in U.S. banks to qualify for using Zelle.

Great Customer Service

Customer service is important when you’re overseas or at any time. Check that your bank or credit union offers 24/7 customer support.

You should also check that your bank has accessible online banking or a mobile app, as you might have to check your accounts while traveling.

Since you’re in a foreign country and card hacking is prevalent, ensure your bank has alerts for suspected fraud.

You’ll also want to be able to lock or unlock your credit card in case you lose it.

Traveling Easy With the Right Bank

There’s a lot to consider when traveling, especially if you’re going abroad. In addition to the usual planning and packing, ensure that you know what your bank can and cannot do for you.

Check what fees you'll be charged for transactions. Just that alone could prepare you or allow you to choose certain transaction or transfer methods that could save you hundreds of dollars.

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