Personal banking: Things to know before international travel

International travel can be a great adventure. Taking care of personal banking matters in advance can help to ensure that any planned trips go off without a financial hitch.

From day-to-day payments to card compatibility, it's important to know how financial transactions will be made when traveling abroad.

This guide covers the things to know before international travel gets off the ground — including what to avoid, the virtues of planning ahead, and how to maximize rewards while boosting travel savings.

Preparing for an international trip

Next to packing lists and itineraries, a personal banking checklist can be a good idea before traveling abroad. Here are some important banking items to cover off on before you leave:

• Notify the bank about travel plans. Unusual transactions in a foreign location can be flagged by bank fraud departments. No one wants the hassle of having their credit card declined or their account deactivated mid-journey. Informing the bank in advance of dates and destinations can help ensure travelers can access their account for the duration of their trip.
• Understand fees and rates. International banks, merchants, and providers may charge different fees compared to banks at home. It can be useful to inquire at domestic banks about foreign exchange fees and research which overseas providers might keep them to a minimum.
• Put security measures in place. It’s important to protect personal payment information while abroad. Wallets with radio-frequency identification (RFID) technology can help shield sensitive data, and setting travel alerts and monitoring account activity can help keep accounts secure from unauthorized transactions.
• Check for compatibility. Not all credit and debit cards are accepted everywhere, and travelers need to know what's usable in the country or region they plan to visit. Checking for international compatibility before departing for a trip is a solid starting point.
• Determine your payment methods. Which payment methods are best used when abroad? Credit and debit cards may provide a streamlined choice, but if the card is compromised or fails, then cash, travelers’ checks, or backup cards may provide reliable alternatives.

Choosing which card to use abroad

Travelers often wonder if it's better to use a debit or credit card abroad. There are benefits and disadvantages to each.

Credit cards can be a good choice for international travelers. They offer protection in the event of fraud, theft, or unauthorized transactions and may also provide rewards, loyalty incentives, cash back opportunities, and travel insurance. However, using a credit card while traveling abroad may mean paying foreign transaction fees and fees if withdrawing money from an ATM (as cash advances).

A debit card provides travelers with instant access to their funds in connected accounts, wherever they go. However, most debit cards do not offer rewards or incentives and may have international incompatibility.

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Using your card abroad

Consider these additional tips and best practices when using a credit card overseas:

• Researching ATMs. Not all overseas ATMs are alike, which is something travelers may want to keep in mind when considering a cash withdrawal. Some ATMs may be aligned with the bank at home or part of a network that offers lower fees. Researching beforehand and selecting only affiliate machines may help prevent unnecessary ATM charges.
• Playing it safe. Being aware of ATM safety is good practice. There’s the chance that skimming devices and data theft measures can be used and may compromise account security.
• Learning about currency rates. Whether at a store, ticket office, or restaurant, merchants may offer the choice of paying in local or home currency. Choosing the local currency and letting the bank convert the transactions generally provides a more favorable exchange rate. Paying in home currency with credit or by using debit cards abroad may result in currency conversion fees, which may be hidden in the final sale without stipulation.
• Carrying cash. Having cash on hand is a way to pay for things when traveling. Travelers may want to consider visiting foreign banks or currency exchange offices as alternatives to using ATMs abroad.

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Leverage rewards and benefits

Customers may be able to maximize their experience by claiming rewards and travel benefits offered by their personal credit or debit card program. Some potential perks can include:

• Travel insurance. Depending on the provider’s terms and conditions, a credit card may offer travel insurance for the duration of the trip. This can help protect customers from unexpected expenses and potentially assist with trip cancellations, delays, medical emergencies, and other adverse situations.
• Purchase protection. Some cards offer purchase protection, which can ensure purchases in the event of theft or damage within a given period following a transaction (usually 90 to 120 days).
• Cash back. Many credit card programs offer loyalty incentives in the form of cash back on certain purchases, helping users save more on their spending.
• Concierge services. In some instances, concierge services may be a feature of the card program, assisting customers with their arrangements to help streamline travel plans.

Travelers may want to research credit card terms and conditions and make the most of any travel rewards and credit card benefits that may apply.

Making safe payments while traveling overseas

Travelers should be security conscious when making payments abroad. Using contactless payments and mobile wallets or apps to purchase items at stores or while dining out can help boost security. Digital payments offer additional layers of protection to help prevent fraud and unauthorized transactions.

It's also a good idea to be cautious when connecting to public Wi-Fi networks, as they tend to lack adequate security protections and potentially expose personal information to unwanted third parties. RFID wallets or VPNs can also help to shield sensitive financial data from potential interference.

Also, take note of all incomings and outgoings along the way and monitor transactions. This way suspicious activity can be noticed if and when it happens. Travelers want to be informed about common travel scams and pay attention when in new places.

If a card is lost or stolen mid-trip, immediate action is in order. Travelers should contact the issuing bank to report the missing card and put a block on it. This can be done directly over the phone or through the bank's customer service or fraud department.

Plan ahead and simplify your travels

The best trip is always a hassle-free trip. Planning ahead and taking into account personal banking logistics well before the departure date can help ensure the adventure of a lifetime without any financial hardship.

Travelers are encouraged to practice secure purchasing, consider the right bank card for overseas travel, maximize travel points and benefits to save on spending, and always review bank and credit card statements upon return to address any suspicious charges or actions.