I usually draw money out from an ATM wherever I am going. I bank with USAA and haven't had any problems. I also have their World MasterCard which works just fine without crazy fees.

Anyone have any updates to this advice?

USAA appears to charge an ATM fee now on international withdraws. (1%)

Heard the airport discounts their fee, is that true?

That 1% is still way better than what you will pay at an exchange booth at the airport. The booth sets its own exchange rate AND charges a transaction fee. Those places will rob you.

If you can find a card without a transaction fee so much the better, but regardless, an ATM is far and away the best method.

USAA also credits back the ATM fee ("press enter to accept") 3 times a month.

As for credit cards, some merchants will give you the choice of conducting the transaction in USD or the local currency. If you choose dollars, they will use their own exchange rate; if you choose local currency, it will be your bank's exchange rate which is much better.

I'll grab a couple $100 equivalent before I go (at my bank if I have time, more often at the airport), and hang on to that for emergencies. Then use the ATM to pull cash to live on once I'm there. Would hate to arrive and find out none of my cards work for some reason.

I'll use CC's only for hotels, rental cars, and trains. Otherwise too much risk of your account getting skimmed and shut off.