Compare fees, convenience, rewards and more between three key payment methods.
Traveling overseas involves a lot of planning — and that includes your money.
What is travel money?
Travel money, for lack of a better term, essentially means the options of credit cards, debit cards, prepaid cards and foreign currency — all designed for travel and foreign transactions. Each form of travel money has different pros and cons, so you’ll want to compare and contrast before choosing which’ll be best for you and your itinerary.
Compare travel money options
Compare the fees, convenience, rewards and more between prepaid travel cards, credit cards, debit cards and foreign currency while planning how you’re going to pay for food, souvenirs and other goods on your next trip.
Prepaid travel card
Credit card
Debit card
Foreign cash
Foreign transaction fees
No
Sometimes
Sometimes
No
Currency exchange fees
Yes — but the rate is locked in
Yes
Yes
Yes
ATM withdrawal fees
Sometimes
Sometimes
Not usually
N/A
Currency load fee
Yes
N/A
N/A
N/A
Instant reload (no delay)
Yes
N/A
N/A
N/A
Worldwide acceptance
Yes
Yes — except for select countries, like Cuba and North Korea
How to decide which type of travel money is best for you?
Prepaid travel cards, credit cards and debit cards can all be effective ways to pay while you’re traveling. In fact, a combination of the three might be the safest and most convenient way to have all your bases covered. But the travel money you should embrace as your primary payment method depends on your situation:
Pick a credit card if…
You travel frequently and want to earn rewards. Whether you’re a hotel fiend, a frequent flyer or just love earning cash back, a travel credit card can be the gift that keeps on giving — as long as you keep spending. Just make sure you have a plan for paying your balance in time.
You want a safety net in case of emergencies. Even if it isn’t your primary payment method, keeping a travel credit card in your back pocket can help cover any unexpected expenses.
Pick a prepaid travel card if…
You’re on a strict budget. A prepaid travel card can help ensure you don’t overspend, since you can only spend what you’ve already loaded onto the card.
You want to lock in an exchange rate. Avoid unpleasant surprises by knowing exactly how much your US dollars are worth from the get-go.
Pick a debit card if…
You plan on frequenting ATMs. If you like the feeling of cold, hard cash in your hands — or will be shopping at markets that only accept cash — you should consider a travel debit card that comes with zero ATM fees.
You want direct access to your checking account. A travel debit card can be more convenient than a prepaid travel card, since you don’t need to preload money. It’s also ideal if you want to avoid racking up a credit card bill.
Travel credit cards
Browse travel credit cards to find an option with perks that match your travel style — just make sure you have a plan to pay it off.
Pros
Access to credit. Credit access comes in handy for emergencies.
Rewards. Earning cash back lets you have something to look forward to when you come home.
Extras. Some cards come with complimentary travel insurance, purchase protection and concierge services.
Cons
Availability. Some travel credit cards are banned in countries like Cuba, Iran, Myanmar, North Korea, Sudan and Syria due to economic sanctions.
Lack of access to cash. You could be charged with hefty fees for using a travel credit card when you withdraw cash at an ATM.
Inactivity fee. Some card issuers will charge you a monthly fee if you don’t use the prepaid card frequently enough.
New and existing Checking and Savings members who have not previously enrolled in Direct Deposit with SoFi are eligible to earn a cash bonus when they set up Direct Deposit of at least $1,000 during the Direct Deposit Bonus Period. Cash bonus will be based on the total amount of Direct Deposit. Direct Deposit Promotion begins on 12/7/2023 and will be available through 12/31/24. Full terms at sofi.com/banking. SoFi Checking and Savings is offered through SoFi Bank, N.A., Member FDIC. SoFi members with Direct Deposit can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the 4.20% APY for savings (including Vaults). Members without Direct Deposit will earn 1.20% APY on savings balances(including Vaults) and 0.50% APY on checking balances. Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet.
SoFi members with Direct Deposit or $5,000 or more in Qualifying Deposits during the 30-Day Evaluation Period can earn 4.20% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. There is no minimum Direct Deposit amount required to qualify for the stated interest rate. Members without either Direct Deposit or Qualifying Deposits, during the 30-Day Evaluation Period will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Only SoFi members with direct deposit are eligible for other SoFi Plus benefits.Interest rates are variable and subject to change at any time. These rates are current as of 10/31/2024. There is no minimum balance requirement. Additional information can be found at http://www.sofi.com/legal/banking-rate-sheet
Our account fee policy is subject to change at any time.
SoFi Bank is a member FDIC and does not provide more than $250,000 of FDIC insurance per legal category of account ownership, as described in the FDIC’s regulations. Any additional FDIC insurance is provided by the SoFi Insured Deposit Program. Deposits may be insured up to $2M through participation in the program. See full terms at SoFi.com/banking/fdic/terms See list of participating banks at SoFi.com/banking/fdic/receivingbanks
We’ve partnered with Allpoint to provide you with ATM access at any of the 55,000+ ATMs within the Allpoint network. You will not be charged a fee when using an in-network ATM, however, third-party fees incurred when using out-of-network ATMs are not subject to reimbursement. SoFi’s ATM policies are subject to change at our discretion at any time.
Early access to direct deposit funds is based on the timing in which we receive notice of impending payment from the Federal Reserve, which is typically up to two days before the scheduled payment date, but may vary.
Prepaid travel money cards are great for budgeting, since you can only spend what’s already on the card — but that could actually be a drawback in the event of an emergency.
Pros
Lock in exchange rates. These cares allow you to lock in rates so you won’t be surprised by the fluctuating value of your US dollars.
Earn cashback. Select cards like the Prepaid Travel Card by Mastercard can earn you some rewards.
Use it worldwide. Most prepaid travel cards are either Visa or Mastercard, which are widely accepted.
Cons
Fees. you may have to pay for loading, reloading, currency conversion, withdrawing cash and more.
ATM withdrawal limits. you may have to pay extra for withdrawing larger amounts of money.
Not great for emergencies. since you only have a finite amount of cash you may need another source of money in case you run out.
Many travel debit cards waive foreign transaction fees and ATM withdrawal fees, setting you up for an easy breeze experience — as long as you don’t overdraw your checking account.
Pros
Fewer fees. Withdraw cash and buy all the souvenirs you want without getting dinged for it.
ATM availability worldwide. Choose a travel debit card that’s compatible with the highest number of ATMs.
Fraud protection. Your bank can help with damage control if your card is lost or stolen.
Cons
No cushion for emergencies. If you make large purchases, they could drain your account, which may lead to overdraft fees.
Long card replacement wait. If you lose your card it may take up to two weeks to get a new one.
Traveler’s checks
Traveler’s checks were once a widely used form of travel money, but they’re going the way of the dinosaur. You can weigh up whether they’re worth your time below — but we’d advise looking elsewhere.
Pros
Secure.Traveler’s checks are an extremely secure method to spend money overseas.
Safe. They can be easily replaced if lost or stolen.
Cons
Initial cost. You might be charged a purchasing fee when you first pick up your traveler’s check.
Acceptance. Traveler’s checks aren’t accepted as widely as other payment methods.
Can be bulky and awkward to carry. Plus, you’ll have to go to the effort of getting them cashed rather than having immediate access to your cash like you would with a card.
Holding a certain amount of foreign cash provides you with convenience and payment flexibility. Some stops on your destination may be cash-only and having extra on you can provide a smooth transition to wherever your destination may be.
Yes! In fact, it’s usually safer to travel with some cash than none at all — though you don’t need to take large sums along with you. To keep your cash safe while traveling, avoid keeping it all in one place. Instead, divide it between your suitcase, purse and other safe places so that if some gets stolen you still have backup cash.
Keep in mind that carrying more than $10,000 at a time could actually be a headache, since you’ll need to declare it on your customs form to explain why you’re traveling with so much money.
5 places to do a foreign currency exchange
The best place to exchange your foreign currency is at your bank or credit union BEFORE you travel.
Bank. Call your local branch beforehand to see if their services line up with what you need. Most nationwide banks, like PNC, offer competitive rates and no transaction fees.
Credit unions. Similar to banks, credit unions generally offer competitive exchange rates and limited or no transaction fees.
But if you’re already in a foreign destination, your best bet is to use a travel debit card to withdraw funds at an ATM.
Debit card. You should be able to withdraw cash from an international ATM with decent exchange rates and fees ranging from 1% to 3%.
Airport kiosks and currency exchange stores should only be used as a last resort.
Airport kiosk. After disembarking from the plane, you can exchange your currency at the airport. But fees are high and exchange rates will be less-than-favorable.
Currency exchange store. You can find exchange stories in most international cities, but again, the fees will be working against you.
Destination money guides
For your next international trip, plan ahead by knowing how much to bring, and which travel money option is best for you. Choose your destination to get the full guide:
Amy Stoltenberg managed newsletters at Finder, gathering the best articles each week to help subscribers save money and stretch their hard-earned dollars. She also handles the Twitter account, dabbling in Instagram and Facebook too. When she's not on the computer, you can find her exploring Los Angeles with a good book in tow. She studied writing at Savannah College of Art and Design and has been featured on the Zoe Report. See full bio
Amy's expertise
Amy has written 28 Finder guides across topics including:
Kyle Morgan is SEO manager at Forbes Advisor and a former editor and content strategist at Finder. He has written for the USA Today network and Relix magazine, among other publications. He holds a BA in journalism and media from Rutgers University. See full bio
My son did some work overseas and was paid in Macedonian Denars. He’s having a terrible time getting this exchanged to US money.
Where can he do this?
Finder
CharisseSeptember 6, 2018Finder
Hi Foxtrotrn,
Thank you for reaching out to finder.
Macedonian Denar is a closed currency which is a currency that you can only get in the country of origin and that is the reason why it is quite difficult to have it exchanged to US dollars.
The options that you have for foreign currency exchange are:
– International exchange kiosks which can be found in airports
– Banks
– Online foreign exchange companies such as World First, XE and other similar companies which offer exchange services online
I hope this helps.
Cheers,
Charisse
VinitaDecember 19, 2017
Can I get dirhams–Moroccan currency–from any Chase branches?
Finder
RenchDecember 20, 2017Finder
Hi Vinita,
Thanks for your inquiry. Please note that we are not affiliated with Chase or any company we feature on our site and so we can only offer you general advice.
Yes, Chase offers international money transfers including dirhams. Aside from using your bank, you can also compare currency exchange companies that you can use to save on your next exchange.
Best regards,
Rench
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My son did some work overseas and was paid in Macedonian Denars. He’s having a terrible time getting this exchanged to US money.
Where can he do this?
Hi Foxtrotrn,
Thank you for reaching out to finder.
Macedonian Denar is a closed currency which is a currency that you can only get in the country of origin and that is the reason why it is quite difficult to have it exchanged to US dollars.
The options that you have for foreign currency exchange are:
– International exchange kiosks which can be found in airports
– Banks
– Online foreign exchange companies such as World First, XE and other similar companies which offer exchange services online
I hope this helps.
Cheers,
Charisse
Can I get dirhams–Moroccan currency–from any Chase branches?
Hi Vinita,
Thanks for your inquiry. Please note that we are not affiliated with Chase or any company we feature on our site and so we can only offer you general advice.
Yes, Chase offers international money transfers including dirhams. Aside from using your bank, you can also compare currency exchange companies that you can use to save on your next exchange.
Best regards,
Rench