A pressing challenge for many digital nomads is dealing with currency conversion. Between markups on exchange rates and high conversion fees, many digital nomads lose a lot of money to international ATM fees and currency conversion charges abroad. As a digital nomad, managing your finances efficiently across different countries is key to maintaining your lifestyle.
Fortunately, there are smart ways to avoid incurring unnecessary banking fees. This article is a guide on the best ways digital nomads can avoid ATM and conversion fees while living and working abroad.
Read also: Digital nomad essentials: tech gear that actually matters
Before avoiding fees, you need to understand where they come from. Here are the main types of charges travellers and remote workers face:
Here are some smart tips to help you avoid unnecessary conversion charges.
Digital nomads can save significantly by switching from traditional banks to digital payment platforms tailored for cross-border transactions. Platforms like Grey, Wise, Revolut, and Payoneer offer multi-currency accounts that let you hold and manage money in different currencies and convert at mid-market exchange rates. Grey provides a USD debit card you can use globally, reducing your withdrawal costs. Always compare platforms before initiating large transfers to ensure you’re getting the most out of your income.
Also read: Receiving international freelance payments: Wise vs Grey vs Payoneer
If your bank charges per withdrawal, it’s often cheaper to withdraw larger sums less frequently rather than several small amounts. However, always balance this with safety considerations and avoid carrying large amounts of cash at once. When possible, choose ATMs inside banks or shopping centres for added security and to minimise the risk of card skimming.
When an ATM or card terminal asks if you want to pay in your home currency, always decline and choose the local currency. Accepting DCC means the ATM provider sets a poor exchange rate.
Some international or local banks partner with global ATM networks to waive foreign transaction and withdrawal fees. Before travelling, check your provider’s ATM network or partnerships to plan ahead and find the most cost-effective options.
Some cards have unique features tailored to frequent travellers and remote workers. Look for cards with zero or low foreign transaction fees, use the mid-market exchange rate, offer free international ATM withdrawals up to a limit and cashback or travel perks. ****Compare various cards based on the country you’re visiting and how often you’ll withdraw or spend in foreign currencies.
Avoid ATM fees abroad by using contactless or chip payments whenever available. You get a better exchange rate than you do with an ATM withdrawal or a local currency exchange service.
Also read: The digital nomad’s survival guide to financial admin on the road
Avoiding ATM and conversion fees as a digital nomad is key to maximising your earnings and reducing your expenses while globetrotting. Grey allows users to open USD, GBP, and EUR accounts, receive payments directly from clients, and withdraw funds to local bank accounts at competitive rates, helping you avoid markups entirely. You can also monitor the exchange rates in real time to convert at the most favourable rate.
Get started on Grey today to save up on currency conversions.
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