Not everywhere takes credit or debit cards so another option is to withdraw cash from a local ATM. This has the same advantage as using a credit card, that of getting the wholesale exchange rate, plus the fact that you can get local currency from the machines.
Again, find out any daily /weekly/ monthly limits your bank imposes on transactions.
Disadvantages are, again, the fees charged. There is the usual currency exchange fee, plus a handling fee (a flat fee of a few dollars/pounds, or a percentage 2-4%, again, per transaction).
In addition, bear in mind that if you use your credit card for a cash advance from an ATM then interest will start to accrue immediately without a grace period (unlike purchases made with the credit card). And of course, with debit cards, there is no interest to accrue as the money comes straight out of your bank account.
For this reason a good rule of thumb would be to use your credit card for purchases and to use your atm/debit card for cash withdrawals (remembering that you also get purchase protection with the credit card).
Another thing to keep in mind is that PINs (Personal Identification Numbers) can work differently in different countries. Some countries use six digits but four is more common, so consider changing to a 4 digit PIN if you can.
Try to make sure that the first digit of your PIN is not a zero either, as this can sometimes cause problems. Conversely, if you do have a four digit PIN and the machine you are using asks for a six digit number, try entering two zeros at the start of the number then your PIN.
If you can, try to find and ATM which is part of the PLUS network (for VISA) or the Cirrus network (for MasterCard) withdrawals. These are interbank networks that allow your cards to work in the other bank’s ATM machines.
A Cirrus system card, for example, will currently work in over sixty countries, including about 10,000 machines in the U.K., 1000 in France, 1400 in Austria, 3000 in Turkey, 300 in Israel, 3600 in Mexico, 1800 in Australia, and 150 in Thailand.
The networks are designed to make available the same services that you get when you use your ATM at home, such as balance enquiries (and of course, cash withdrawals). There is no guarantee, however, that you won’t be charged yet another, additional fee to use the other bank’s ATM (as well as your own bank’s fees on top of this).
Even so, you will inevitably run into trouble using an ATM abroad, so to cover all eventualities, take a credit card, an ATM card, and a few hundred (or thousand) dollars/pounds in cash, as well as a small amount of local currency, and maybe even some traveller’s cheques.
If you are having trouble finding an ATM overseas you can find them using the Internet. Click here for the worldwide Mastercard ATM locator, and here for the worldwide VISA ATM locator.
