Author: Nick Wharton / Source: Wise Bread
Thanks to ATMs being so widespread globally, you can travel to a foreign country with little more than a bank card and gain instant access to your cash. However, without an understanding of the differences between using an ATM at home and abroad, you could end up in serious trouble.
Here are 11 common ATM mistakes to avoid while overseas.1. Using your credit card for ATM withdrawals
Credit cards typically charge larger fees when you take out a cash advance at an overseas ATM. You’ll be charged a cash advance fee, probably an ATM fee, and possibly a foreign transaction fee (unless you have a credit card with no foreign transaction fees). Plus you’ll instantly be charged interest on the cash advance at a higher rate than your purchase APR.
Do yourself a favor: Only take out money using your debit card and save your travel rewards card for direct purchases.
2. Not getting a checking account with no ATM fees
Even if you’re using the ATM of the same institution that you bank with at home, you’re still likely to get hit with ATM fees just for taking money out. Avoid this by signing up for an account that promises no international ATM fees. Several U.S. banks and financial institutions offer zero ATM fees, and even if the ATM applies one, you’ll likely get reimbursed at the end of the month. (See also: 11 Ways to Avoid Bank Fees While Traveling)
3. Thinking ATMs can do the same transactions as in the U.S.
If you’re hoping to pay bills, transfer money between accounts, or even see an accurate account balance when you’re abroad, think again.
Many foreign ATMs are relatively one dimensional, particularly when it comes to using them with nonnative cards. Be prepared to only withdraw cash from ATMs and setup online banking or use your bank’s app for anything else.4. Not telling your bank about your trip
As part of their fight against fraudulent activity, banks will often take the precaution of freezing your account whenever anything unexpected happens. This includes you attempting to withdraw cash in another country if you haven’t made them aware of your travel plans. All it takes is a quick visit, phone call, or online update to let your bank know where you’re going and for how long, and you should have…
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