Debit Cards Work Internationally, But They Can Be Pricey. Here's Why.

Debit cards are becoming increasingly popular worldwide, and as more people carry them around in their pockets, more people naturally carry them across borders, too. But this begs the question: do debit cards work internationally in the first place? Are there exceptions or rules you should be aware of?

The short answer is that debit cards do work internationally as long as the merchant accepts cards belonging to your card issuer. However, as we'll see in this article, paying with your bank's debit card while overseas can often be surprisingly (and avoidably) expensive due to currency conversion fees and hidden forex margins that apply every time you tap or insert your card.

In this short guide, we delve into more details about why, when, where, and how paying internationally with a debit card is possible before looking at the costs and providing a few prepaid debit card options to help you dodge the hidden fees.

Do Debit Cards Work Internationally?

Yes, debit cards normally do work internationally. This means that in the vast majority of cases, you'll be able to use your debit card in a foreign country exactly like you would in your home country.

That's because, luckily, debit cards work in pretty much exactly the same way as credit cards do from a technical perspective. Wherever you can swipe, insert, or tap a credit card, you can do the same with a debit card, too.

When Don't Debit Cards Work Internationally?

Your debit card will only work abroad if your card issuer is accepted by the merchants you're paying. Merchants and ATMs abroad will very often show the logos of the cards that they accept on their storefronts or machines, like in the photograph below:

In practice, if you travel to a popular tourist destination using a VISA or Mastercard debit card, you will almost certainly be fine. If you happen to have a debit card from a less common or more exclusive card provider like American Express, UnionPay, or Discover, or if you're travelling to a country with a lower rate of card acceptance, then you may run into trouble paying with your debit card (but this would be the same with a credit card too).

According to Statista, a few popular tourist destinations with very low card acceptance rates include the following (although, even in these places, bear in mind you'll probably still be able to use your debit card in more touristic establishments just like normal):

• Belize,
• Maldives,
• Puerto Rico,
• Qatar,
• Vietnam,
• Cambodia,
• Laos,
• Morocco,
• Nepal.

Here are two other factors to keep in mind:

• Tapping vs inserting: In some countries, contactless payments ("tapping") are less popular, meaning you'll need to insert your card into the payment terminal and punch in your PIN to pay. Therefore, before travelling, make sure your debit card has an EMV chip to ensure it'll work for non-contactless payments.
• Letting your bank know: Although this is becoming less typical, if you want to be on the safe side, we recommend you contact your bank before your trip to let them know you'll be using your debit card out of country. This way, you'll avoid your card triggering your bank's fraud detection systems and being automatically blocked. Your bank would also be able to tell you if there's anything particular to your card that might concern you when paying abroad, such as fees, benefits, or protections.

Fees to Use Your Debit Card Internationally

There are two types of fees you'll probably encounter when spending using your bank's debit card to pay internationally:

1. Currency Conversion Fee: This is a fixed fee or commission that your bank or card provider might charge you whenever you pay with your card in a foreign currency (e.g. euros in the UK). Some banks and providers don't charge these fees, but most do. In our experience, they're usually between $0.50 and $1.50 per transaction as a fixed fee or 0.5% to 2% as a commission (although, depending on your provider, they could be higher still).
2. Exchange Rate Margin: This is a less transparent fee that your bank might charge to convert currencies. It arises when your bank, using the 'real' mid-market exchange rate (i.e. the one you see on Google) to convert your local currency into a foreign one and then applies a worse exchange rate on your transaction, leading to a markup of anywhere between 0.5% and 5% in extreme cases.

In addition, there are also other types of fees you might encounter that aren't charged by your bank or card provider itself, but by third-parties:

1. Dynamic Currency Conversion: These fees are charged whenever you're given a choice to pay in your home currency or the local currency, and you choose your home currency. Whenever you're given this choice, we recommend choosing to pay in the local currency, where you'll only pay the exchange rate surcharge instead of the DCC in addition to that. Learn more about these sneaky fees here.
2. ATM Fees: ATM networks normally charge a fee whenever you withdraw cash. Since it'll normally be a fixed amount, we recommend making fewer, larger cash withdrawals while abroad than a larger number of smaller ones.

Taken together, these fees make bank debit cards a rather expensive method to pay abroad. Later, we'll go over a few top alternatives you could consider to dodge some of these fees.

Consider These Factors When Choosing a Debit Card for International Travel

When it comes to selecting a debit card for your international adventures, there are a few key factors that can ease your travel experience:

• No foreign transaction fees: Look for a debit card that eliminates foreign transaction fees, which often come as a percentage of the purchase total. Make purchases abroad without incurring unnecessary charges, saving your money for more enjoyable experiences.
• Fee-free or low-fee ATM withdrawals: Find a debit card that offers fee-free or low-fee ATM withdrawals. While not all banks will reimburse fees from ATM machines, many will at least not charge you for taking out cash abroad.
• Travel perks: Consider debit cards that come with additional travel perks. These can range from discounts on accommodations and transportation to access to airport lounges or travel insurance.
• In-app security: Opt for a debit card that provides virtual card options for enhanced security from pickpockets. Many apps also allow you to freeze your cards instantly if the physical debit card gets lost or stolen.
• Backed by a major issuer: Ensure that your chosen debit card is backed by a major issuer such as Visa, Mastercard, or other reputable companies. This ensures wider acceptance and reliability, giving you peace of mind during your travels.

Using the Global ATM Alliance

If you plan to withdraw cash while abroad, we suggest looking for a partner within the Global ATM Alliance network and planning your ATM visit in advance. The Global ATM Alliance consists of banks worldwide that waive international ATM access fees:

• List of Global ATM Alliance Partners

If you don't have access to a Global ATM Alliance bank, always try to use an ATM that belongs to a local bank rather than a generic cash machine, like Euronet. By doing so, you can have greater confidence that you will receive the mid-market exchange rate.

Revolut

Revolut offers an excellent debit card to use abroad because it allows you to hold over 30 currencies and spend money in over 150 currencies. Revolut charges an industry-low 0.2%-0.4% fee on weekdays to convert your home currency to the local currency of your travel destination. Then, when you use the local currency with your Revolut card, you'll avoid both typical foreign transaction fees and dynamic currency conversions.

You will also be able to withdraw cash from ATMs worldwide without incurring any fees (up to a $1,200 limit per month, depending on your account type), although third-party ATM fees may still apply. After that $1,200 limit, each withdrawal will incur a 2% fee. This is quite generous when compared to its competitor Wise, which has a $250 per month limit.

With their paid plans, you can even get discounted airport lounge access for you and a friend, travel insurance for delays and baggage, and medical insurance coverage.

• No foreign transaction fees;
• Fixed fee between 0.2% and 0.4% to exchange currency;
• ATM withdrawals of $1,200 per month fee-free;
• Read our Revolut review or visit their website.

Chime (USA Only)

Chime is a good debit card for international travel thanks to its no foreign transaction fees. Unlike multi-currency accounts like Revolut (which let you hold local currency), Chime uses the live exchange rate applied by Visa. This rate is close to the mid-market rate, and Chime does not add any extra markup to your purchases.

While Chime waives ATM fees at all MoneyPass, AllPoint, and Visa Plus Alliance ATMs within the United States, this fee waiver does not extend to withdrawals made outside the country. For withdrawals abroad, Chime applies a $2.50 fee per transaction, with a daily withdrawal limit of $515 or its equivalent. This is addition to any fees charged by the ATM owner. Therefore, we recommend Chime primarily for card purchases rather than relying on it for withdrawing cash while traveling internationally.

• No foreign transaction fees;
• Uses Visa's exchange rate (monitor here):
• A $2.50 fee per ATM withdrawal made outside of the United States;
• Read our Chime review or visit their website.

Wise

Wise Multi-Currency Account is an exceptional debit card option for international travel, particularly for customers in Canada where Revolut is not available. With the app, you'll be able to hold and spend money in over 50 currencies. When converting your home currency to the local currency of your travel destination, Wise charges a minimal fee, often ranging from as low as 0.35% to slightly above 2% for less common currency corridors. By paying with the local currency on your Wise card, you'll be treated as a local cardholder, bypassing both the typical foreign transaction fees and dynamic currency conversions.

Furthermore, Wise enables you to withdraw cash from ATMs worldwide without incurring any fees, up to a monthly limit of $250. However, make sure to note that third-party ATM fees may still apply. And once the $250 limit is exceeded, each withdrawal will be subject to a 1.75% fee.

• No foreign transaction fees;
• Fixed fee ranging from 0.35% to 2% for currency exchange;
• Fee-free ATM withdrawals of up to $250 per month;
• Read our Wise review or visit their website.

Capital One (USA Only)

Capital One's 360 debit cards are much more transparent about waiving international transaction fees than other big American banks. When you use the card abroad, Capital One applies the live exchange rate provided by the card issuer (they have a wide range of card options, and they partner with Visa, MasterCard, American Express, and others). Capital One does not impose any additional markups when you spend your USD in foreign countries. However, make sure to enroll in their 360 accounts to avoid potential fees because they may charge a fee of $2, plus 3% of the total transaction amount, for non-360 products.

Capital One is part of an alliance that includes AllPoint, MoneyPass, and other partners, giving you access to over 70,000 ATMs throughout the United States. However, this coverage is limited to the US, so when making international ATM withdrawals, Capital One may charge a fee of $2 per transaction in addition to potential fees imposed by the ATM owner.

• No foreign transaction fees;
• Uses the live exchange rate provided by the card issuer;
• Potential $2 fee per international ATM withdrawal;
• Read our Capital One review or visit their website.

Starling Bank (UK Only)

Starling Bank stands out as one of the premier debit cards for international travel for customers in the UK, thanks to its absence of foreign transaction fees. If you solely have their GBP account, your Starling Bank card will apply the live exchange rate used by MasterCard, which closely aligns with the mid-market exchange rate.

One of the most compelling features of Starling Bank is its complete exemption from ATM fees, both domestically and internationally. Irrespective of the amount of cash withdrawn or the frequency of withdrawals, Starling Bank never imposes any fees for ATM transactions. While third-party fees may still apply, as determined by the ATM owner, this travel benefit solidifies Starling Bank's position as the top debit card for international travel for UK residents and citizens.

• No foreign transaction fees;
• Uses of MasterCard's exchange rate (monitor here);
• No fees for international ATM withdrawals;
• Read our Starling Bank review or visit their website.

Bottom Line: The Best Travel Debit Cards in 2023

Now is the perfect time to plan your next trip and ensure you have the right debit cards for seamless international travel. With these cards, you can store local currency, avoid pesky international transaction fees, or reduce international ATM fees when you need local cash.

Best of all, they all offer virtual cards that can be instantly added to your digital wallet for convenient contactless payments while adding an extra layer of security. With their smartphone apps, you'll have complete control, allowing you to freeze the card instantly in case of loss or theft.

Take a look at the summary below for the best debit cards for international travel:

1. Revolut: Best overall US debit card for international travel
2. Chime: US digital account without foreign transaction fees
3. Wise: Multi-currency account with most currency options
4. Capital One 360: Best US bank for international transactions
5. Starling Bank: Best ATM card in the UK for international travel

Disclaimers

Chime is a financial technology company, not a bank. Banking services and debit card provided by The Bancorp Bank, N.A. or Stride Bank, N.A.; Members FDIC. Credit Builder card issued by Stride Bank, N.A.

¹ Out-of-network ATM withdrawal and over-the-counter advance fees may apply. See here for details.

² To apply for Credit Builder, you must have received a single qualifying direct deposit of $200 or more to your Chime Checking Account. The qualifying direct deposit must be from your employer, payroll provider, gig economy payer, or benefits payer by Automated Clearing House (ACH) deposit OR Original Credit Transaction (OCT). Bank ACH transfers, Pay Anyone transfers, verification or trial deposits from financial institutions, peer to peer transfers from services such as PayPal, Cash App, or Venmo, mobile check deposits, cash loads or deposits, one-time direct deposits, such as tax refunds and other similar transactions, and any deposit to which Chime deems to not be a qualifying direct deposit are not qualifying direct deposits.

³ The Annual Percentage Yield ("APY") for the Chime Savings Account is variable and may change anytime. The disclosed APY is effective as of September 20, 2023. No minimum balance is required. Must have $0.01 in savings to earn interest.

⁴ On-time payment history can have a positive impact on your credit score. Late payment may negatively impact your credit score. Results may vary.

⁵ SpotMe® on Credit is an optional, no-interest/no-fee overdraft line of credit tied to the Secured Deposit Account available to qualifying members with an active Chime Credit Builder Account. SpotMe on Debit is an optional, no-fee overdraft service attached to the Chime Checking Account available to qualifying members after Visa debit card activation. Both SpotMe on Credit and SpotMe on Debit are sometimes collectively referred to as "SpotMe" or, if you have signed up to use SpotMe with only one account, "SpotMe" means the elected service. To qualify for SpotMe, you must receive $200 or more in qualifying direct deposits to your Chime Checking Account monthly. Qualifying members will be allowed to overdraw their Chime Checking Account and/or Secured Deposit Account (associated with your Chime Credit Builder credit card) up to $20 but may be later eligible for a higher limit of up to $200 or more based on Chime account history, direct deposit frequency and amount, spending activity and other risk-based factors. The SpotMe limit will be displayed within the Chime mobile app and is subject to change at any time, at Chime’s sole discretion. Although Chime does not charge any overdraft fees for SpotMe, there may be out-of-network or third-party fees associated with ATM transactions. SpotMe Debit Terms and Conditions and SpotMe on Credit Terms and Conditions.