Cash or card? Your guide to debit card safety while traveling
If you have plans to travel, you might be thinking about how you'll pay for expenses while globetrotting. You have more than a few options — credit cards, prepaid travel cards and cash — but one of the safest and most convenient is your debit card, Ally Financial reports.
Benefits of using a debit card while traveling
Traveling with a debit card has several advantages.
Convenience
Your debit card is a great option because it allows you to access money directly from your bank. If your debit card is a branded VISA®, MasterCard® or other major credit card company, it can be used at millions of locations worldwide. Plus, if you find yourself somewhere that only accepts cash, you’ll be able to use your debit card to withdraw money from an ATM.
Security
In the event that your card is lost or stolen, you may have the option to lock it via your account or an app.
Minimize cash usage
You can access funds without having to carry around large amounts of cash.
Avoid currency exchange fees
Using your debit card to withdraw local currency can help you avoid currency exchange fees when traveling internationally.
How to prepare to use your debit card during travel
If you’re vacationing within the United States, your debit card will work exactly the same as it does at home. Using a debit card abroad is pretty easy with most banks, but there are some best practices to keep in mind.
Notify your bank of travel plans
While it’s not always required, it is recommended that you let your bank know, especially if you’re leaving the country. If you don't, your bank may mistakenly flag your card for fraudulent activity and interfere with purchases you are trying to make on the go.
Pay attention to fees
It’s a good idea to budget for any possible fees. One of the more common is ATM usage.
If you’re leaving the country, make sure to account for an international transaction fee of up to 1% if you need to get cash from an ATM outside the U.S.
You’ll also want to look into whether or not your debit card levies a foreign transaction fee, which can tack on up to an additional 3% onto the purchase price when you’re abroad. Those fees would apply to anything you purchase on your trip, so they could add up quickly.
Using your debit card safely abroad
Ensure that you and your money remain safe while traveling in foreign countries by:
- Choosing secure ATMs
- Monitoring your account regularly
- Keeping your bank's contact information handy
Avoid overdraft fees
Just like at home, vacations can sometimes include unexpected expenses. Whether it's a spur-of-the-moment souvenir splurge or a surprise medical emergency, you can't plan for everything. If you're using your debit card for extra travel costs, you run the risk of overdrafting your account and then facing the fees that often come with it. Building a buffer into your budget for those unforeseen events can keep you a step ahead, but make sure to monitor your account so you can make adjustments if needed.
Safe travels
Your bags are packed and you’re ready to go, just don’t forget to let your bank know. As you set off on your next adventure, consider bringing your debit card along to help keep you on budget, provide additional security and keep your finances on track.
This story was produced by Ally Financial and reviewed and distributed by Stacker.
