How to avoid hidden bank fees when traveling abroad?

When paying with a bank card abroad, currency exchange costs and hidden service fees can make transactions significantly more expensive. Moonika Maaring, head of personal banking at Coop Bank, offers advice on how to avoid these costs.

On a holiday trip, it's easy to forget that paying with a bank card abroad doesn't necessarily mean you're paying exactly the amount you see at the checkout. The actual cost often only becomes clear at home when reviewing your account statement, and it can be surprisingly higher.

Moonika Maaring, head of personal banking at Coop Bank, explains that the biggest pitfalls are hidden in currency exchange and service fees that many travelers don't pay attention to.

Currency exchange pitfalls

One of the most common ways extra money disappears from a bank account is through so-called dynamic currency conversion. This means that when you use an ATM or shop abroad, you're offered the option to pay in euros, but you have to pay a high exchange rate surcharge for that convenience. It's always worth choosing the local currency instead.

When withdrawing cash abroad, both the local bank's service fees and your home bank's foreign transaction fees are often added. Sometimes withdrawing cash can cost several euros more than it first appears.

What to keep in mind when traveling

Before a trip, it's worth reviewing the terms of your bank card, especially what the foreign transaction fees are and whether your card includes a certain number of free foreign transactions in its monthly fee. It's also worth considering whether to use a special travel card on your trip, which has more favorable terms for foreign currency.

Moonika Maaring recommends paying attention to not automatically accepting the exchange rate offered by the local bank when making card payments, but always choosing to process the transaction in the local currency. This way your own bank's rate applies, which is usually more favorable.