Traveling can be an exciting experience, but it comes with financial risks. Ensuring the safety of your finances will help you avoid potential losses and disruptions. Here are 24 money tips for traveling abroad to help keep your finances safe.
Before You Leave
Inform your bank of your travel plans: Notify your bank and credit card issuers of your travel itinerary (dates and destinations) to avoid having your cards blocked due to suspicious foreign transactions. This step helps keep your bank from flagging legitimate transactions as fraudulent, which can happen when large transactions occur outside of the country.
Update contact information: Ensure your bank has your current mobile number, and check with your carrier about international calling and SMS options. This step will facilitate communication if your bank needs to reach you about suspicious activity.
Know your card PINs and limits: Familiarize yourself with your credit and debit card PINs and daily limits. This knowledge is essential for using ATMs and making purchases at places like ticket kiosks and gas stations. Many countries rely heavily on chip-and-PIN technology, so knowing your PIN is crucial.
Review your cards’ foreign transaction fees: Make sure you understand your credit and debit card foreign transaction fees. While small on a per-purchase level, these fees can add up over the course of your travel.
Set up account alerts: Enable alerts for your bank accounts to monitor transactions. This can help you quickly identify and respond to suspicious activity. Most banks and credit card companies offer options for text or email alerts whenever a transaction occurs. Be aware of potential texting fees while traveling internationally.
Photocopy important documents: Make copies of your passport, driver's license, and the front and back of your credit and debit cards. Store these copies securely, either physically or digitally on a password-protected device. This step can save you a lot of hassle if your documents are lost or stolen.
Hold your mail: Request a mail hold from the Postal Service to prevent sensitive documents from being stolen while you're away. This simple step can prevent identity theft by keeping your personal information secure. Consider having your mail held until after you return in case you are delayed. Otherwise, you may arrive home to an overflowing mailbox!
Inform your family of your travel plans: Notify your family and close ones of your travel itinerary and the best way to contact you. As phishing attempts become more sophisticated, it is best to make sure neither you nor your loved ones are caught unaware by someone pretending to be you.
Inform your power of attorney of your travel plans: Notify your power of attorney and other designated agents of your itinerary and the best way to contact you. While unlikely, it is possible that they may need to act on your behalf if something were to happen.
Withdraw cash proactively: It is very likely that you’ll need to use some foreign currency while traveling. You can request foreign currency at the current exchange rate from your local bank before you travel. Carrying cash on your person comes with risks, but this is usually the best way to acquire foreign currency while avoiding international ATM fees.
While Traveling
Use credit cards: Credit cards offer better protection against fraud than debit cards. Protection can include zero liability for unauthorized charges and the ability to dispute fraudulent transactions. This makes them a much safer choice for travel purchases.
Carry multiple payment options: Have more than one credit card and some cash as a backup. This ensures you have alternatives if one payment method fails or is lost. Consider carrying cards from different networks (e.g., Visa, MasterCard) to increase your chances of having a usable payment method. Some locations may not accept cards from certain networks.
Look out for malicious technology: Be wary of card skimmers at ATMs and point-of-sale terminals. Skimmers will often look bulkier than typical devices and may show signs of damage where they were installed. If a device looks suspicious, avoid using it. Skimmers can capture your card information and lead to unauthorized transactions.
Use secure Wi-Fi networks: Avoid accessing financial accounts over public Wi-Fi networks. Use secure, private networks to reduce the risk of cyber theft. Consider using a VPN for an added layer of security when accessing sensitive information online.
Be alert to pickpockets: In crowded areas, be cautious of your surroundings and keep your wallet and valuables secure. Consider using a money belt or hidden pockets to keep your travel money and cards safe. Consider using a wrist strap for your phone so that it is not stolen out of your hand. Finally, if you’re using a backpack, consider wearing it on your front to deter would-be thieves. Pickpocketing is a common threat in tourist-heavy areas.
Use hotel safes: Store important documents, extra cash, and spare credit cards in your hotel room's safe. If you have a laptop or other device that can access your personal information, make sure it is password-protected and secured as well. If a safe is not available, use a lockable suitcase or ask if the hotel has a secure storage option. This reduces the risk of theft from your person or hotel room.
Be vigilant when using ATMs: Debit cards do not offer as many protections against fraud as credit cards, but sometimes, you may need to use your debit card to withdraw cash. It is best to use ATMs attached to banks to lower the chance of running into a skimmer. If you need to use your credit card to withdraw cash for any reason, be aware of cash advance fees.
Limit social media sharing: Avoid posting your travel plans or current location on social media to prevent potential thieves from tracking your movements. Sharing too much information online can make you a target for theft. For example, it would be a good idea not to notify people on social media that your home will essentially be vacant for two weeks.
Use RFID-blocking wallets: Protect your credit and debit cards from digital theft with RFID-blocking wallets or pouches. These items prevent thieves from scanning your cards' RFID chips to steal your information, which can occur just by walking next to you.
Review your transactions: Review your bank accounts daily for unauthorized transactions and flag anything you find to ensure that no future fraudulent purchases are made from the same source. This would be best to do when you are on a secure Wi-Fi network since public Wi-Fi networks are prone to hacking attempts.
Additional Tips
Be aware of common scams: Research common scams at your destination and stay alert to avoid falling victim to them. This includes being cautious with taxi drivers, street vendors, and "helpful" locals. Be wary of accepting an item or service from anyone if you are not willing to pay for it. Knowledge of local scams can help you avoid trouble.
Have travel insurance: Consider purchasing travel insurance that covers lost baggage, trip cancellations, and medical emergencies. Some credit cards also offer travel insurance benefits. These can provide peace of mind and financial protection in case of unexpected events.
Know your health coverage: Review your medical insurance to determine what is covered while abroad. Medicare does not provide coverage outside of the USA. However, some other common options, such as the Federal Employees Health Benefits (FEHB) program, do. Knowing your coverage can help you better plan for which emergencies you may want to purchase additional insurance.
Pay in local currency: If you are given the option, it is typically better to choose to pay in local currency rather than your home currency. This can help you avoid currency conversion fees, which, like foreign transaction fees, can quickly add up over the course of your travel.
Traveling is supposed to be an enjoyable activity, but bad actors can quickly turn a trip into a stressful experience. By following these tips, you can reduce the risk of financial issues while traveling and enjoy a safer, more relaxed trip. Whether you're navigating foreign currency exchanges or simply trying to keep your money secure, a bit of preparation goes a long way toward peace of mind on your journey.
This material was written in collaboration with artificial intelligence (ChatGPT) derived from sources believed to be accurate. This information should not be construed as investment, tax, or legal advice.