Never Overpay When Traveling Internationally Again
Unfortunately, the high cost of airline tickets and hotels have restricted me to about one trip annually. However, over the years, I've been able to figure out a couple of tricks that have saved me a significant amount of time and money when traveling abroad. Here are three.
1. Save Time with Global Entry
There's nothing worse than waiting in a long line at the airport, especially after you've gotten off a 12-hour flight. Now, thanks to Global Entry from the Department of Homeland Security, you may not have to. The program's main benefit is allowing you to skip long immigration and customs lines when re-entering the United States. If you take one international trip a year, that equates to over an hour saved a year plus a huge reduction in stress. Global Entry membership includes TSA precheck benefits, which allows you to go through expedited security lines for both domestic and international flights.
To apply, fill out an application and pay $100 for five years of membership. Once your application has been processed, go to an international airport with a Global Entry enrollment center for a 15-minute interview and fingerprinting. Avoiding security, immigration and customs lines is well worth essentially $20 a year.
2. Save Money with Credit Cards
The first time I traveled internationally, I didn't even know about foreign transaction fees, but I learned quickly. Many credit cards charge such a 2 percent to 5 percent fee when you use your card outside of the United States.
The secret to avoiding these charges is a credit card without foreign transaction fees. I use the Sapphire Preferred card from Chase (JPM), but other cards with this feature include American's Express' (AXP) pricey Platinum card or the free Quicksilver Cash Rewards card from Capital One (COF).
3. Save Money on ATM Withdrawals
More irritating than paying to use your credit card is paying to get access to your own money. Many banks charge various fees to use another bank's ATM outside the U.S. You may get charged an ATM fee by your own bank ($2-$5), an ATM fee from the bank you're using ($2-$5) and foreign transaction fees from your bank on the money you're withdrawing (1 percent to 3 percent). On a $100 withdrawal, you might only receive $87 after fees (3 percent foreign transaction fees and $10 bank fee).
One solution is opening a Charles Schwab High Yield Investor checking account, which charges absolutely no ATM fees or foreign transaction fees on any transactions. I opened a Schwab (SCHW) checking account last year for my Italy trip, and it felt fabulous to withdraw money from any ATM I wanted.
Roger Ma is a digital media professional, personal finance expert, and licensed real estate salesperson. He is the founder of lifelaidout, a personal finance blog that helps others identify value and save time, money, and energy in their everyday lives.