How to Use ATMs When You're Traveling Abroad

ATMs abroad work the same way as at home, but you'll pay fees and your bank converts the money at its own rate

When you insert your card into an ATM in another country, the machine reads your account the same way a domestic ATM does. The difference is in what happens next: your bank charges you a fee (usually $3 to $5 per withdrawal), the ATM operator's bank charges a fee (often another $2 to $3), and your bank converts the local currency to dollars at a rate that includes their markup. You see the total cost only after the transaction completes. Most travelers withdraw cash once every few days rather than daily to reduce the number of fees.

The ATM itself will offer to show you the exchange rate before you confirm. This is the rate the ATM operator is using, not your bank's rate — they are often different. Decline the ATM's offer to convert at its rate if you see that option; let your bank handle the conversion instead, which is usually cheaper. Always choose to be charged in the local currency, not dollars.

Key Takeaways

• Each ATM withdrawal abroad costs you $5 to $8 in combined fees from your bank and the ATM operator, so withdraw larger amounts less often.
• Your bank converts the money at its own rate, which includes a markup — you cannot negotiate this, but you can avoid the ATM's separate conversion offer.
• Tell your bank you are traveling before you leave, or your card may be blocked as fraud when you use it overseas.
• ATMs in airports and tourist areas charge higher fees than ATMs inside banks or grocery stores in residential neighborhoods.
• If your card is swallowed or stops working, contact your bank's international support line immediately; the number is usually on the back of your card.

Notify your bank before you travel

Call your bank or use its app to tell them you are traveling and the dates you'll be gone. Most banks flag foreign transactions as potential fraud and will block your card if they see activity in another country without warning. This takes five minutes and prevents you from being stranded without access to your money.

Ask your bank three things during this call: whether your card works in the countries you're visiting, what the ATM fee is, and what the foreign transaction fee is (some banks charge both). Write down the international support number they give you — this is different from the domestic customer service number and is the one you call if your card stops working while you're away.

Choose ATMs in banks or grocery stores, not tourist areas

ATMs inside bank branches or supermarkets in residential areas charge lower fees than ATMs in airports, train stations, hotels, or tourist shopping districts. The difference can be $2 to $4 per withdrawal. If you arrive at an airport, use the ATM there only if you need cash immediately; withdraw a larger amount to cover your first few days, then find a bank ATM in the city where you're staying.

In many countries, ATMs inside grocery store chains are free or nearly free for all users, regardless of which bank issued your card. Ask your hotel or a local person where the nearest supermarket ATM is. This single choice can cut your total ATM costs in half over a two-week trip.

Withdraw cash in larger amounts to reduce fees

Because each withdrawal costs $5 to $8, taking out $200 once costs less than taking out $50 four times. The tradeoff is carrying more cash, which increases the risk of theft or loss. Most travelers find a middle ground: withdraw $150 to $300 every three to five days, depending on how much they spend daily and how safe they feel carrying cash.

Check the daily withdrawal limit on your card before you leave. Many banks set a lower limit for foreign ATMs than for domestic ones — sometimes $300 or $500 per day instead of $1,000. If you need more than your limit, you may have to space out withdrawals across multiple days or contact your bank to raise the limit temporarily.

Understand what you'll pay in fees and exchange rates

Your total cost per withdrawal is the ATM operator's fee, your bank's foreign ATM fee, and your bank's foreign transaction fee (if it charges one). A $200 withdrawal might cost you $7 to $10 in fees alone, which is 3.5 to 5 percent of the amount withdrawn. Some banks charge no foreign transaction fee; others charge 1 to 3 percent. This is set by your bank and does not change based on where you withdraw.

The exchange rate your bank uses is not the mid-market rate you see online. Your bank adds a markup of 1 to 3 percent. You cannot see this markup separately — it is built into the rate they quote. This is normal and unavoidable; all banks do it. The only way to reduce this cost is to use a bank or credit union that advertises lower foreign transaction fees, but switching banks takes time and is not practical if you're leaving soon.

What to do if your card is blocked or stops working

If an ATM declines your card or your card stops working, do not try the same ATM again immediately. Try a different ATM at a different bank. If multiple ATMs decline your card, call your bank's international support line right away. Have your card number and passport ready. The bank can tell you whether the card is blocked, whether there is a technical problem, or whether you have hit your daily withdrawal limit.

If your card is physically swallowed by the ATM, the machine will usually give you a receipt with a phone number to call. Call that number to report it. Your bank can cancel the card and arrange for a replacement to be mailed to you or to a local branch if you're staying in one place long enough. In the meantime, ask if you can withdraw cash using your passport at a bank branch, or contact someone at home to wire you money.

Consider alternatives if ATM fees are too high

If you're staying in one country for more than a week or two, opening a local bank account may be cheaper than paying ATM fees repeatedly. Some banks in popular tourist destinations offer accounts for travelers with minimal paperwork. You deposit money once and withdraw it over time without per-transaction fees. This works only if you're staying long enough to make it worthwhile.

Another option is to use a credit card instead of an ATM for purchases whenever possible. Credit cards usually charge a foreign transaction fee (1 to 3 percent) but no per-transaction fee, so a single $200 purchase costs less than four $50 ATM withdrawals. The downside is that not all places accept cards, and some charge a fee to use them. Ask before you buy.

Frequently Asked Questions

Should I let the ATM convert my money to dollars, or should I let my bank do it?

Let your bank do the conversion. When an ATM offers to convert to dollars at the time of withdrawal, it uses its own rate, which is almost always worse than your bank's rate. The difference is usually 1 to 2 percent per transaction. Always choose to be charged in the local currency and let your bank convert it later.

What's the difference between an ATM fee and a foreign transaction fee?

An ATM fee is charged per withdrawal and goes to the ATM operator's bank. A foreign transaction fee is charged by your own bank on any transaction outside the U.S., including ATM withdrawals and card purchases. You may pay both on a single ATM withdrawal. Some banks charge no foreign transaction fee; others charge 1 to 3 percent.

Can I use my debit card to get cash back at stores instead of using an ATM?

In some countries, yes — grocery stores and pharmacies often offer cash back with a purchase. The fee structure is usually the same as an ATM, so you still pay your bank's fees. The advantage is that you may find a store in a safer or more convenient location than an ATM. Ask the cashier whether they offer cash back before you make a purchase.

What happens if I withdraw more cash than I need and have to bring it back to the U.S.?

You can bring any amount of cash back into the U.S., but you must declare it to customs if it's more than $10,000. There's no penalty for declaring it. The real cost is that you paid ATM fees to withdraw money you didn't spend. Estimate conservatively how much cash you'll need and withdraw accordingly.

Do I need to tell my bank I'm traveling if I'm only using my credit card, not my debit card?

It's still a good idea. Credit cards are less likely to be blocked for foreign use than debit cards, but some banks do flag them. Calling ahead takes five minutes and eliminates the risk that your card will be declined when you need it. At minimum, tell your bank the countries you're visiting and the dates.