One advantage to banking online is that accounts can be accessed from anywhere in the world.

If you desire to establish a long term or temporary residence in another country, you should consider an online bank. Although individual circumstances may vary, the following example is how many people choose to manage their finances while traveling internationally.

Often, people who travel have asked how they can pay bills in United States Dollars (USD) while purchasing items in another currency. Another issue is how to pay bills in USD while earning money in another country. Usually a combination of the right credit card and an online bank can provide the necessary solution.

Scenario 1: I earn my money in USD but want to purchase items in another currency and pay my expenses in USD without having to hassle with exchange rates.

This scenario can be easily managed with an online bank and credit card. A good credit card will often allow you to make purchases in any currency and pay the bill in USD. It is important to choose the right credit card. Often times, if you call a credit card company on the phone they will tell you that they do not charge a finance fee for converting currencies. This is a little deceptive, because while the bank that issues the credit card may not have a finance charge, the credit card company itself does. Visa, MasterCard, American Express, Discover®, and most major credit cards charge between 1%-3% fee to make a purchase in a foreign currency. MasterCard offers the lowest fee at 1%. However, this fee could be significantly less than what most places will charge to convert currency upon arrival.

By choosing a credit card that will allow you to view your bill online, many Online Banks will allow you to pay your bill online. Therefore, by making your purchases on a credit card and having your money transferred or directly deposited to your bank account, you can easily convert currency and pay the bill from anywhere you travel.

Scenario 2: I earn my money in a foreign currency but need
to pay bills in USD.

The solution to this scenario will vary greatly depending on which foreign currency you are earning, but again, the credit card/online bank model may be an effective solution. It is important to find a credit card, such as MasterCard, that will allow you to view you bills online. Since most places accept credit card payment, you can have all your USD expenses paid on this credit card. By choosing an online bank, such as CompuBank, you may then pay this bill online all at once without the trouble of having billers individually bill you. Upon arrival to your foreign destination, we suggest applying for a credit card that will allow you to pay your bill in whatever currency you will be earning. By giving this credit card number to your billers, you will be able to pay your USD billers without having to pay the exchange rate fees that most banks will charge for converting currency.

As of yet very few online banks provide the option of managing accounts with different currencies. This is why credit cards offers the most effective solution. Some countries, such as Canada, have online banks that allow you to manage accounts with both USD and Canadian Dollars (CAD), but this varies greatly from country to country. Often, you will need to have established a presence in that country before starting an account.

The best solution in this scenario is to find a credit card that will allow you to pay your bills in the desired currency and to give that credit card number to your USD billers.

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