Important Financial Considerations to Keep in Mind When You Travel Overseas

If you have your passport and your bags packed to go overseas you should always make sure that you are financially prepared to travel abroad.

Deciding how to pay for your travel expenses is one the most important decisions you face in relation to an international trip. A lot goes into planning a vacation, especially to a foreign country, and that’s just for the logistics: airfare, lodging and transportation.

You will also need to plan financially by letting your bank know your travel plans: when you’re leaving, where you’re going and what fees to expect when using your debit or credit card.

Here is a list of important financial considerations to be mindful of before you go overseas.

The majority of banks will freeze your accounts if fraudulent activity is suspected, such as unexpected foreign purchases. It’s important that the bank or credit card issuer is aware of your travel plans so they can ensure the proper account safeguards.

About two months before you travel overseas you should call your bank and credit card issuers. Let them both know that you will be out of the country. Ask them if your PIN will work at your overseas destination. Four-digit PINs work in most countries. If your PIN contains zeroes, however, that may be a problem in some non-network ATMs. Furthermore, many foreign ATMs don’t recognize four-digit PINs. Calling ahead gives you time to change your PIN, if necessary.

Since fees and conversion rates vary widely, it’s important to know exactly what you will be paying to make ATM withdrawals or paying with your debit or credit card. This also gives you the option of comparing fees and currency conversion rates between your bank and third-party conversion companies. You want to get the best deal, so knowing about transaction fees and currency fees ahead of time may save you some money.

It is important to keep in mind that banks might have different withdrawal limits than ATMS. Keep in mind that any individual ATM may have a different withdrawal limit and limits may be expressed in the local currency. Have a backup plan that involves more than one way to pay.

Make sure that there’s enough money in your accounts to pay for travel expenses once you get there; you don’t want to find yourself overdrawn on your trip. To alleviate any additional stresses of overdraft fees, on top of running out of money, you can transfer funds from one account to the other using a mobile banking app.

Get all the information you will need to contact your financial institution from international locales in case of stolen or lost cards. Most banks and credit card issuers will have local numbers you can call to report any mishaps that may occur while traveling internationally.