Generally, it is easiest for students to maintain their U.S. checking account and withdraw money from ATMs as needed. Most international destinations will have plenty of ATMs that accept international Visa and Mastercard debit cards. Be aware that international withdrawals often carry a fee, assessed by both the U.S. bank and the bank that operates the local ATM. Check with your bank to learn more about international withdrawal fees.
It is recommended that travelers have a secondary means of electronic payment abroad, such as a credit card (either a Visa or Mastercard). Note that some credit card companies charge a foreign transaction fee for payments made abroad. This fee can range from 2 to 5%. There are credit cards that charge no foreign transaction fee; it may be worth considering applying for a card without a fee. Check with your credit card company about foreign transaction fees.
Debit and credit cards issued with embedded microchips are becoming increasingly popular in the United States, and have been in use in many other countries for several years already. Microchips provide additional security. It is very common abroad to be asked for your PIN (personal identification number) when making a purchase with a credit or debit card. If you don’t already know your PIN, be sure to call your bank before you travel to obtain one for these instances.
If it is necessary for your student to open up a bank account abroad, they can find out more information about how to do so from their program coordinator at their university abroad. Once the account has been open, you may make a bulk transfer of funds. However, be aware that exchange rates can change fairly rapidly, and there is no guarantee that a transfer made at the beginning of the semester will have the same worth in foreign currency at the end of the semester.
If you are concerned about your student’s funds, recommend that they allow you access to their online banking. If necessary, remind your student that they must still pay their bills while abroad, unless they have worked out agreements ahead of time.