Tips for Using Credit and Debit Cards Abroad
Traveling abroad is an exciting trip, but it can be a little daunting when visiting a new country. Before you leave for your trip, it’s essential to know how you’ll handle your finances while you’re away.
Notify Your Financial Institution
You should notify your financial institution of your travel plans before you depart. This will help you avoid having your cards blocked or declined. If your financial institution isn’t aware that you’re abroad, they may think there is fraudulent activity happening with your cards. You can notify your financial institution by using the app or website to enter your travel dates and destination. Otherwise, you can go and tell them in person.
Choose Local Currency
Once you reach your destination, you may notice that at checkout, the terminal will ask you if you want to convert the transaction to your currency. You should select the local currency to avoid Dynamic Currency Conversion (DCC) markups. It may be confusing not knowing how much you’re actually spending, but converting to your currency only makes your costs increase. This is because a rate will be applied on top of your total price. You will also see this option when using an ATM and should select it to proceed with the ATM transaction without conversion.
Use a Card with No Added Fees
You may want to make sure your cards don’t charge any fees for international purchases. You can do this by going to your card issuers’ site and reading their fee information. If you have a card that doesn’t charge foreign transaction fees, you should make that card the primary one for your trip. If none of your cards don’t charge fees, you may want to shop around for a new card—only if it makes financial sense. By using only a card that charges fees during your trip, you’ll quickly see how much those fees add up.
Have a Plan If Theft Happens
You never know when you may become a victim of theft, so you should always be cautious and prepared. You can find pickpockets anywhere, but you’ll find more in certain places. Your card issuer may have an international contact number that you can call if something happens. Write this number down and keep it somewhere safe, away from anything someone could steal. If you notice your cards are missing, you should contact your card issuer immediately or freeze the card in your app.
It is smart not to keep all your cards in one place. If your wallet is stolen and every card is kept there, you’ll no longer have a way to make purchases during the remainder of the trip.
Use the ATM as Few Times as Possible
Withdrawing money from an ATM in a foreign country will often result in fees from the local bank and your bank at home. You don’t want to use the ATM often while in a different country, as the fees will quickly add up.
You can locate compatible ATMs at your destination before you get there. If there are specific ones you’d like to use, you can send the search results to your phone. They’ll be easily accessible to you once you land at your destination.