Travel Mistakes – How To Handle Your Money When Abroad

When you’re traveling, knowing what sort of money you need to have with you is often a bit of a trick. The US dollar is still accepted many places, but not all, and it’s not just paper currency you need to think about, it’s also what sort of credit card you have with you. Because, while credit cards have made it easier, not every card or card network works where you are despite any claims that they work everywhere you want to be.

Then there’s things like currency exchanges and know where to do that, much less where to do that without getting hosed by the broker. If you lived through the 80s you might even be asking if traveler’s checks are still a thing? No matter how you decide to take your money with you, there are things you should prepare for.

That’s why we’re here to help you with what you should, and shouldn’t, do with money on your next trip. With a little bit of planning, you can save yourself from a lot of hassle, and save yourself time and, well… money.

Credit Cards

Just like at home, credit cards are the dominant way people pay for things when they are traveling. Most cards, especially Visa and MasterCard network cards, are accepted widely around the world. With phones able to become a store register using tap-to-pay, the convenience has never been higher. Everything from small shops on the corner to major tourist venues are all equipped to conduct credit card transactions.

It’s gotten even easier in the last decade because modern-day credit card networks are very advanced. In the past, it was necessary to alert banks when you travel, but financial institutions have much more advanced fraud detections now and (for the most part) that’s no longer necessary. That doesn’t mean it’s clear sailing without barriers, though, so let’s go over some crucial steps.

Credit Cards by Sean MacEntee.

1. Check your credit and debit cards for PIN numbers. While it is not common in the US, pin numbers are sometimes needed in other countries when you conduct transactions. Many of us will know our debit card PINs, but credit cards are rarely known. It’s worth calling the card issuer to get this information, just in case you need it.
2. Always bring at least two cards. If one gets lost, stolen, or frozen due to a fraud alert, you want a back-up. We once landed in Norway for a two-week trip only to get word from our credit card company, as we landed, that our primary card was frozen due to a fraud attempt, and it really was a fraudulent use. Fortunately, we brought a back-up card.
3. Although I said it’s usually not necessary, it’s a good idea to check if your financial institutions want to be alerted if you are traveling. Most do not, but their website or a customer service rep will be able to tell you very quickly.
4. Amex cards are often coupled with travel perks, especially the ones from airlines, but, ironically, they are not widely accepted abroad. Bring a Visa or MasterCard for backup.
5. Do not use your credit card to get cash from an ATM. You will be paying massive fees. Use your debit card for this instead.
6. Keep all your credit cards in a RFID blocking sleeve when stowed in your wallet or purse. Theses sleeves block thieves from using short range scanners to steal your card’s information.

That extra step: If you know that you are traveling abroad in the future, you might want to get a card or two that does NOT charge foreign exchange/transaction fees. Many travel oriented cards feature this is a perk but not all, so verify the card does not have these fees before use.

Your Phone

Nowadays, your cell phone is your lifeline to the world. We keep our photos, emails, texts, home security cameras, and just about everything else on it. However, how you use it can bring unwanted risks so follow these tips.

1. If you are walking around holding your phone and staring at a map to get around, you might be seen as an easy target. Thieves are brazen and will try to grab your phone right out of your hand. They are often on scooters or bikes when they do this, so they can get away quickly. When you aren’t using it, consider keeping your phone in a safe place on your person.
2. If you’re on a cruise ship, put your phone in airplane mode the minute you’re onboard. We have seen people charged hundreds of dollars in roaming fees because they didn’t take this step.
3. You can use an app like WhatsApp or Signal so you can make free VoiP calls to family and friends. Just make sure your friends are on the same system.
4. Think you’ll use Uber abroad? Uber sneaks in a 1.5 percent fee for paying in dollars instead of the local currency. To avoid paying the extra cost, go into your account, open your “Wallet” and, under “Preferred currency,” select “No preferred currency.” (Just make sure the card you use doesn’t have those foreign currency fees like we discussed)
5. Verify your cell phone plan before traveling to any country. Know what the charges will be, if any and if you want to connect to the networks at all. Additionally, consider looking into either international coverage plans or eSim plans in order to continue having cell service around the world. We use Google Fi, but there are a wide range of services you can use and often download from your phone’s app store.
6. Turn off your phone’s NFC, Near Field Communication, setting. That can be used by scammers to get a lot of information without you knowing. If you want to use your phone to pay for things, which is a perfectly safe thing to do, turn the setting on to make the payment and then turn it off immediately after completing it.

Foreign Currency

When you’re traveling to other countries, they likely have their own currency. That’s not always true as many nations accept or fully use the Euro, the Dollar, or the Peso, as legal tender, but it is often the case. Knowing what type of currency the place you are visiting uses is a must but there’s a other important points as well.

Currency Exchange Sign by Bradley Gordon.

1. Never use those foreign currency exchange windows or kiosks at airports, you will pay huge fees and throw money away.
2. If a credit card transaction asks if you want to convert your payment to your home currency, say no. This is just another way to get more fees.
3. Avoid multiple ATM cash transactions in a single day. Most banks won’t cover your out-of-network ATM withdrawals, not to mention foreign exchange fees, and each time you use an ATM those fees are racking up. Also, don’t use an ATM without checking the surroundings and making sure no one can see your pin entry.
4. Don’t worry about getting foreign currency for tips. In most countries, they will gladly accept USD if that’s what you have. Along with this, know the tipping culture of where you are and follow it, doubly so for US travels and travelers. If you’re visiting the US, don’t stiff US workers if you visit – that just makes you a prick. If you’re from the US, don’t assume that you should tip like you do when you’re home because that too can be considered rude in other places!
   
   To be clear, I’m not defending the US tipping culture, but until something changes that’s the way it is and that’s how many workers, especially in food service and hospitality, actually earn their living.

Common Sense Safety

There are some steps to keep your finances in order that really are more common, or not so common, sense actions. Although these next points don’t all directly deal with money, they are worth bringing up here.

Pulling Out Money From ATM by OTA Photos.

1. Stay aware of your surroundings and do not leave a bag or backpack unattended even for a few seconds.
2. Take a picture of your passport in case a replacement is needed. This picture should be on your phone or in a cloud storage account you can access without your phone (if it’s lost). This is not a stand in for your passport, but having an image of all the information on it will smooth the replacement process. Also, keep a picture of your luggage on your phone as well as any luggage claim tickets you might get. If your luggage gets lost, this will make recovery easier.
3. Check the network of the ATM before you use it. Those no-name machines in hotels or corner stores often come with inflated fees and terrible exchange rates. Try to use one affiliated with major international banks—HSBC, Barclays, Santander, etc.
4. Most European countries are now almost entirely cashless as cards are accepted everywhere. But countries like Egypt, Morocco, and Japan, are still heavily cash based in many areas so don’t get caught out without any currency. Be sure to carry at least $50 worth with you, but not more than $200.

Don’t Forget Insurance

If something happens, like you miss your flight or lose your luggage, you could be out thousands of dollars, all your clothes, or worse. Travel Insurance can be one of the most important things you can buy to keep your money safe. Plus, a lot of health plans don’t cover healthcare needs aboard or offer very limited coverage. A simple sprained ankle could mean you’re out hundreds or thousands of dollars by visiting a doctor.

There are a variety of trip insurance options, but you’ll want to look for ones that cover medical expenses, including evacuation, trip delay or cancellation, and if you need it, pre-existing conditions. This isn’t a simple thing to go through and we have an entire article dedicated to it. Take a few minutes and read it over.

Conclusion

We crammed a lot of information into this, but the core message is that you need to be aware of how your money is handled when traveling. Vacations are already expensive, so don’t bring any extra costs on yourself by not being informed. Keep yourself safe and knowledgeable wherever you go and you’ll be better off.

As you might have guessed we are a travel agency and if you are looking to book a trip to a resort, take a cruise, or just get away for a few days we can help with that! Each year we book hundreds of vacations for individuals, families, and large groups. We’ve got years of experience and firsthand knowledge to make sure you get the best trip possible with support all along the way. Our team of travel professionals can help find and book the best rates and discounts for your trip because it’s our job. So don’t book on your own, use our expertise and book with us so we can help get you, far far away.