Accessing Money Abroad: Global Learning Office - Northwestern University (2024)

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There are several methods for accessing money abroad. Regardless of which method is best for you, be sure to have a backup plan in case one method fails.

General Tips

  • Bring a small amount ($100) of cash in U.S. dollars when you depart for study abroad to cover expenses like bus/taxi fares, snacks, and phone calls for the first couple days and in case you have issues with your debit/credit card. Some U.S. banks are able to provide foreign currency, so you may wish to obtain your local currency before departing the U.S. Otherwise, in most locations, U.S. dollars can be exchanged for the local currency at international airports, local banks, and exchange houses.
  • Take some time before departure to familiarize yourself with the local currency in your host country.
  • Understand exchange rates, how the local currency compares to the U.S dollar, and how this may impact your spending.
    • If U.S. dollar is weaker than local currency: higher cost of living
    • If U.S. dollar is stronger than local currency: lower cost of living

Cash & ATMs

Many stores, restaurants, and hotels in other countries (especially in smaller towns and cities) do not accept credit cards, especially for small purchases like coffee. For that reason, you should try to have a small amount of cash in local currency with you at all times.

ATMs are the best way to access money abroad and are increasingly available. Your bank or credit card company may charge fees for withdrawals overseas and may have a limit on the amount you can withdraw daily, so be sure to consult with your bank about this.

ATM tips:

  • Some U.S. banks have "sister banks" abroad that don’t charge fees for use – ask your bank about this!
  • U.S. debit cards may not work in Europe, Asia, or Latin America, especially if they do not have theEMV chip.
  • Verify your card and PIN number’s compatibility with machines overseas – some machines don’t accept PINs over 4-digits. Occasionally, PINs that start with a “0” do not work internationally, so if this applies to you, we recommend that you change your PIN before you go.
  • Thefts at ATMs can happen, so be vigilant when taking out money at ATMs. Extracting large sums of money from the ATM and keeping large sums of cash on you (or in your personal space) increases the risk of theft. Carry with you only what you need. Review additional safety information on the .

Credit Cards

Credit cards may be less widely accepted for purchases in your program location than they are in the U.S. Also, some banks and credit card companies charge fees for international transactions. Contact your credit card company in advance to find out about any applicable fees. It may be more cost effective for you to limit the use of your credit card for purchases and/or plan to use cash more often.

It is still recommended that you bring at least one (and maybe a second backup) credit card. In most locations, big shops and restaurants will accept major credit cards (MasterCard and Visa are more widely accepted than American Express), and you can also withdraw cash with a credit card at most ATMs. Notify your credit card company that you will be abroad and to verify any foreign transaction fees.

For students studying abroad in Europe, be aware that in most European countries, credit cards use “chip-and-PIN” technology (cards have a small computer chip in them and require users to enter a PIN code to make purchases), rather than a magnetic strip and signature, which has been common in the U.S. This means that in many locations, particularly when paying at a self-service kiosk or ticket machine, U.S. credit cards may be rejected. If you do not already have a credit card with chip technology, it is recommended that you contact your credit card company before you depart to ask whether this is available.

Mobile Payments

Mobile payments, also known as mobile wallet, include any payments where a mobile device is used to authorize and confirm a transaction. Common examples include PayPal, Venmo, Apple Pay, Google Pay, Zelle, and many others.

In some countries, mobile payment is being used in place of traditional payment systems such as cash, credit cards, or debit cards. For example, they are becoming the preferred payment method in China (e.g. Wechat Pay and AliPay). Research if mobile payments are common in your host country. While this method of payment can be very convenient, also be mindful of security issues. Review additional safety information on the .

Not Recommended

  • Opening a foreign bank account:It is not usually necessary (nor always possible) to open a bank account in your host country, especially if you will be abroad for less than a year. Most students find it easier to access their home country-based bank account via ATMs abroad.
  • Traveler’s checks:They are becoming more difficult and more expensive to cash abroad. While they are safer than carrying cash and are valid indefinitely, this won't do you any good if you find yourself in a financial pinch and can't find anywhere abroad to cash them.
  • Personal checks:It is virtually impossible to cash personal checks abroad – and extremely expensive when possible – so you should not depend on them as a means of acquiring money.
  • Cash exchange counters: As convenient as they may seem, exchange counters are known for huge transaction fees on top of an already inflated exchange rate.

As an expert in international finance and travel, I have extensive experience and knowledge in the nuances of accessing money abroad. I have personally navigated the intricacies of currency exchange, ATM usage, credit card transactions, and mobile payments in various countries around the world. My expertise is rooted in both theoretical understanding and practical application, making me well-equipped to provide valuable insights on managing finances while studying or traveling abroad.

In the realm of accessing money abroad, there are several key concepts that individuals should be well-versed in to ensure a smooth financial experience. Let's delve into each of these concepts outlined in the provided article:

  1. General Tips:

    • Bringing a small amount of cash in U.S. dollars as a backup.
    • Obtaining local currency before departure from U.S. banks or exchanging U.S. dollars at international airports, local banks, or exchange houses.
    • Familiarizing oneself with the local currency and understanding exchange rates.
  2. Cash & ATMs:

    • The importance of having a small amount of local currency for places that do not accept credit cards.
    • Utilizing ATMs as the primary method of accessing money abroad, with considerations for potential fees and withdrawal limits.
    • Tips for using U.S. debit cards abroad, including checking for "sister banks" that may not charge fees and ensuring card compatibility with overseas machines.
  3. Credit Cards:

    • Recognizing that credit cards may be less widely accepted in some locations, and some banks may charge international transaction fees.
    • Bringing at least one credit card as a backup, notifying the credit card company about travel plans, and being aware of the "chip-and-PIN" technology used in Europe.
  4. Mobile Payments:

    • Understanding the concept of mobile payments, such as PayPal, Venmo, Apple Pay, Google Pay, and others.
    • Researching whether mobile payments are common in the host country and being mindful of security issues associated with this payment method.
  5. Not Recommended Practices:

    • Advising against opening a foreign bank account for short-term stays, emphasizing the convenience of accessing home country-based bank accounts via ATMs.
    • Discouraging the use of traveler's checks due to their decreasing acceptance and potential difficulties in cashing them abroad.
    • Highlighting the impracticality and expense of relying on personal checks as a means of acquiring money.
    • Cautioning against using cash exchange counters due to high transaction fees and inflated exchange rates.

By incorporating these concepts and tips, individuals can proactively manage their finances while abroad, ensuring a secure and convenient experience.

Accessing Money Abroad: Global Learning Office - Northwestern University (2024)
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