Best way to withdraw cash abroad - Tips to avoid fees

Withdrawing cash abroad is often necessary during the course of an overseas trip. It is quite easy to get caught up in all that a new place has to offer and, almost without realising it, you may quickly find yourself short on cash and in need of a top up.

Overseas cash withdrawals can quickly become costly, especially if you’re not careful with how you go about it. That’s why we’ve put together this handy guide to help you manage your cash withdrawals while abroad. We’ll also introduce you to Wise, a travel companion that allows you to enjoy your overseas trip without worrying about hidden fees.

Things to note when withdrawing cash abroad

It’s easy to assume that you can use your debit and credit cards abroad in the same way you do at home. However, without proper preparation, you may be hit with various fees and charges that can quickly add up, leaving you with an unexpected bill.

Here’s a list of the most common pitfalls to be aware of when handling cash abroad.

Avoid credit cards

Credit cards are often a convenient choice when travelling abroad, but they can have steep foreign transaction fees on any purchase made, often between 1.3%-4.5%. Check to see whether your credit card provider charges overseas transaction fees, as not all credit cards do.

When withdrawing cash, the transaction will often be classified as a cash advance, which can result in even more fees. For this reason, it’s best to avoid using credit cards for cash withdrawals to prevent your expenses from piling up.

Withdrawal fees and limits

ATMs are very useful if you need some quick cash, but it’s important to be aware of the various fees that may apply.

The fees that you might expect to be charged when using an ATM abroad can often depend heavily on your bank. Some will offer a flat rate of between $1-$5, whereas others will charge it as a percentage of the overall purchase (usually between 1%-3%)¹.

In addition to these charges, some banks impose conversion fees and surcharges simply for using the ATM. Many banks also have limits on how much you can withdraw at a time so it’s always good to check with your bank beforehand.

Dynamic Currency Conversion (DCC)

Many ATMs and card machines offer Dynamic Currency Conversion (DCC) as an option during your transaction. This option allows you to choose whether to complete the transaction in your home currency or the local currency of the country you're in.

It may seem tempting to select your home currency, as it feels more familiar, but this is a costly mistake. If you choose your home currency, the ATM or card machine sets the exchange rate, which is often less favourable and may include hidden fees.

It is a common trap that travellers will often fall into if unaware of what DCC actually is². To avoid extra charges, always choose to be charged in the local currency whenever possible.

The best ways to withdraw cash abroad

Here are some strategies to safeguard yourself from costly fees while withdrawing cash abroad.

Leverage ATMs with the Interbank Network

One of the best ways to avoid hefty fees when withdrawing cash abroad is to use ATMs that are part of the interbank network. This system allows you to use your debit or travel card at ATMs within the network without incurring high overseas ATM charges.

For example, the Plus network is the system that enables all Visa cards to be used interconnectedly. If you are taking a Visa card, then Visa ATMs are your best bet for overseas cash withdrawal. The Plus Network is available in over 200 countries, though it is more common in some than others. You can check to see if your destination has Plus network access by using Visa’s global ATM locator¹.

Use prepaid travel or debit cards

Prepaid travel or debit cards are another excellent option for saving on overseas spending. Many of these cards are specifically designed for international use, offering lower fees and more favourable exchange rates.

For example, Westpac offers a global currency card which allows its users to add funds prior to travelling. There are no purchase fees or monthly fees, and you are able to lock in exchange rates before spending, eliminating the stress of calculating exchange rates while overseas².

Alternatively, Wise offers a dedicated travel card for overseas spending in over 150+ countries. With the Wise card, you can withdraw up to 350 NZD for free each month before any fees apply. The Wise card uses the mid-market exchange rate, essentially the rate you see on Google, with no hidden mark-ups, coupled with low, transparent pricing, which usually offers you the best value for your money.

Get charged in local currency

Choosing to be charged in the local currency when traveling helps you avoid the hidden fees and poor exchange rates often associated with Dynamic Currency Conversion (DCC). DCC can inflate the cost of your purchase by applying a less favorable exchange rate and adding extra charges, which can quickly add up. By selecting the local currency, you ensure a better exchange rate, more transparency, and greater control over your spending, ultimately saving you money on international transactions.

Withdraw maximum amount in a single transaction

ATMs often impose a per-transaction withdrawal limit, which means you can only take out a certain amount of cash at a time. If the ATM fee is a fixed charge, withdrawing the maximum amount available in a single transaction can help you save on fees.

For example, if the ATM charges a flat fee regardless of the amount withdrawn, it’s more cost-effective to withdraw the full limit in one go rather than making multiple smaller withdrawals. However, do note that some ATMs charge a fee based on the amount withdrawn, in which case withdrawing a larger sum may not provide any savings. Just keep in mind to always withdraw an amount that you’re comfortable with.

Heading abroad? Bring the Wise card for free withdrawals up to 350 NZD

If you're heading overseas and concerned about high fees and unfavorable exchange rates, the Wise card can make spending and withdrawing cash abroad both simpler and cheaper.

Simply open a Wise account online or in the Wise app for free, add money in NZD right from your bank account, and switch to any of the supported 40+ currencies with the mid-market exchange rate. Your linked Wise card can be used for contactless payments, added to wallets like Apple Pay, or used for ATM withdrawals. You can make up to 2 free withdrawals of up to 350 NZD each month. You can save significantly compared to using your bank, as you’ll avoid foreign transaction fees and rest assured you’re getting one of the fairest exchange rates out there along with low, transparent fees. You can track all your transactions through the Wise app for your ease of mind.

No matter where you’re headed, take Wise with you, and save up to 8x when you spend internationally.

🚀 Get your Wise card today

Savings claim based on our rates vs. selected New Zealand banks and other similar providers in Jan 2025. To learn more please visit https://wise.com/nz/compare