Updated 2026
Answer Capsule
Managing money while traveling requires more than a credit card - it requires a strategy combining multiple payment methods, understanding fees, and handling currency exchange wisely. Most successful RTW travelers use: one no-foreign-fee credit card for emergencies and bookings, one debit card for ATM withdrawals in local currency, and one backup card left at home. Skip airport money exchanges (horrible rates), use ATMs for local currency, and understand that while ATMs work almost everywhere, rural areas require cash planning ahead.
Credit Cards vs Debit Cards
Credit cards build credit history and offer fraud protection. Disputes are easier, liability lower. Best for online bookings and emergencies.
Debit cards draw from your account directly, offer less fraud protection. Best for ATM withdrawals.
Best strategy: use credit cards for bookings, debit at ATMs for everyday cash.
Pick cards with zero foreign transaction fees. Capital One, Chase Sapphire, Citi cards often waive. Standard bank cards charge 2-3% per transaction - avoid these.
ATM Withdrawals
ATMs exist in almost all countries. Fees: $2-5 per withdrawal typically. Withdraw larger amounts less frequently to minimize fees.
Expect to pay $20-50 monthly in ATM fees across a year of travel.
Inform your bank you're traveling long-term so they don't freeze accounts thinking fraud.
Currency Exchange
Exchanging money at airports is highway robbery (5-10% markup). ATMs give fair exchange rates. Currency exchange shops beat airports but worse than ATMs.
Use ATMs. Avoid airport exchanges entirely.
Sending Money from Home
Wire transfers are slow and expensive ($30-50 fees). PayPal works if both parties have accounts but takes days. Wise is cheap and fast ($2-4 typical fees).
Discuss with family their comfort with money transfers before emergency happens.
Keeping Money Safe
Carry one primary card, one backup card kept separate, and cash (500-1000 in local currency) kept separate from cards.
Don't keep all money in one place. Don't show large amounts. Don't use sketchy ATMs.
What NOT to Do
Don't exchange at airports. Don't carry all cash together. Don't ignore ATM fees - factor them in. Don't assume one card suffices. Don't wait until broke to arrange transfers. Don't ignore fraud notifications.
The Bottom Line
Carry one no-fee credit card and debit card. Use ATMs for local currency. Avoid airport exchanges. Budget weekly. Tell your bank you're traveling. Set up money transfer method with family for emergencies. Travel insurance covers medical emergencies, not financial ones - reliable banking is your backup.