5 Financial Tips to Prepare for International Travel

Planning a trip outside the U.S. takes significantly more effort compared to traveling domestically. You can’t simply grab your bags and board a plane. To begin with, obtaining a passport is essential, and many countries require you to secure a visa beforehand.

Additionally, other important factors come into play when visiting nations with unfamiliar customs. Are you equipped with basic phrases in the native language? Will you navigate through local transportation via bus, high-speed train, or a rental car? Furthermore, how much should you pack for your trip?

Financial considerations are also crucial to address before you leave. As you get ready for your international adventure, keep this financial checklist in mind. (See also: Adhere to These 5 Credit Card Guidelines for International Travel)

1. Acquire some local currency in advance

While predicting your cash needs for an international journey can be tricky, it’s wise to obtain some of the destination’s currency prior to your arrival. This can facilitate your quick exit from the airport, ensuring you have cash for a taxi or public transport. Additionally, having cash on hand provides peace of mind, especially in case your bank or credit cards encounter issues.

Luckily, obtaining currency for most places around the globe is straightforward with some pre-planning. Contact your bank or credit union in advance, and you can typically acquire the necessary foreign currency in a few days. Generally, you will secure a better exchange rate through your bank compared to what’s offered at airport currency exchange services. Just be cautious not to carry excessive cash on you. (See also: Understanding Exchange Rates)

2. Investigate fees for using your ATM card overseas

Alternatively, you can withdraw local currency from an ATM upon your arrival. Nonetheless, it’s prudent to check the fees associated with foreign transactions in advance.

Be aware that multiple fees might apply when using your ATM card abroad. Initially, your bank might impose a fee for utilizing an out-of-network ATM. Next, the ATM owner may charge their own fee. Lastly, you will likely incur a foreign transaction fee for withdrawals made outside the U.S.

If you’re planning an extended stay or will be settled in one location, you might consider opening an account with a bank that offers lower or no fees for ATM transactions. While it may not be ideal to establish a new checking account right before your trip, it’s worth considering if you’ve been contemplating a new account anyway. (See also: 11 Tips to Avoid Banking Fees While Traveling)

3. Secure a credit card with no foreign transaction charges

In addition to understanding the costs associated with using your ATM card internationally, you should find ways to circumvent foreign transaction fees on your credit card purchases. Typically, this fee, around 3%, is applied to purchases made abroad with many credit cards.

The most efficient method to eliminate this charge is to obtain a credit card that does not impose foreign transaction fees. There are various options available, including those that waive annual fees.

Applying for such a card and taking it along on your trip could be beneficial. To add an extra layer of security, consider obtaining two cards without foreign transaction fees from different card issuers. This provides a backup option in the event you encounter problems with your primary card. One card can be carried with you, while the other can be securely kept in your luggage in case your primary card is lost or stolen.

4. Notify your bank and credit card company

Be aware that purchases and ATM withdrawals made overseas may trigger fraud alerts if your bank is unaware of your travel plans. This could prevent you from using your debit or credit cards until the issue is resolved.

To prevent any banking disruptions during your trip, reach out to your bank and credit card companies prior to your departure to inform them of your travel itinerary. This ensures your accounts are updated to reflect your journey.

5. Document your credit card information securely

It’s vital to safeguard yourself in the unfortunate event that your belongings are stolen while abroad. While securing your valuables in a safe and keeping your luggage locked are smart precautions, there are additional steps you can take to protect your credit card information.

One measure is to write down your credit card and ATM numbers separately, in case your physical cards are lost. Make sure to also note the customer service contact numbers found on the back of each card. Store one copy in your luggage and away from your wallet.

This way, if your cards are lost or stolen, you will have both your account numbers and customer service details readily accessible, making it easier to contact your bank to deactivate the cards. Your bank may even expedite a replacement card to your hotel. (See also: Tips to Prevent Theft While Traveling)