Your money belt is well hidden, your valuables locked in the hotel safe. With your conservative dress and your confident walk, you don’t look like a tourist. You walk into the store, make your purchase, and leave without anyone coming near you. It’s only when you arrive back in the United States that you discover the theft. Every time you spent a dollar, several cents was taken from you. You had a pickpocket in your wallet everywhere you went.

If you’re a savvy traveler, you know that a debit or credit card almost always gets the best foreign exchange rates. When you cash a traveler’s check or dollars, an exchange bureau will give you about 5 to 10% less money than an ATM machine. It’s smart to use plastic. But beware – some banks and credit card companies have slipped a little fine print onto their credit card terms. It’s called a foreign transaction fee, and is quite simply a 3% to 5% fee that the bank charges for transactions made outside the United States. A foreign transaction fee can make your trip a lot more expensive.

The good news is that not all credit cards add this fee. To find out if your bank has sticky fingers, check your terms. It's also a good idea to call your bank and get their policy in writing. If you find you are being surcharged, get a different credit card for your travels. There are plenty of cards that don’t charge a foreign transaction fee, but you’ll have to shop around. (If you’d like a current list of recommended cards, email us at cardlist@cash-abroad.com. You will not be added to a mailing list.)

On your next trip abroad – beware of pickpockets – especially the ones that stay in your pocket all the time.

Kayla Fay is a freelance writer and the publisher of http://www.cash-abroad.com, where you can find more hints that will help you understand the most cost-effective ways to get cash and make purchases on trips overseas.