Protecting Your Money on the Road: How to Make Secure Payments and Avoid Unnecessary Fees
Traveling can be exciting, but losing a card, seeing an unfamiliar charge or paying unexpected fees can quickly add stress to your trip. A little preparation can help you protect your money, reduce unnecessary costs and have backup options if something goes wrong.
From checking your card's fees to choosing how you pay for purchases and get cash, these travel payment tips can help you make informed decisions before and during your trip.
Prepare Your Cards Before You Travel
A few minutes of preparation before you leave can help prevent payment problems while you're away. Spending a few minutes reviewing your cards ahead of time ensures seamless transactions throughout your trip.
Notify Your Card Issuers
Before you leave, check your card’s travel notification policy. While some card issuers and financial institutions still recommend or require travel alerts to prevent fraud blocks, others rely on advanced automated fraud-monitoring technology and no longer require prior notice.
Log in to your online banking portal or mobile app to verify your issuer's current guidelines. Additionally, confirm that your phone number and email address are up to date so your issuer can reach you immediately if a transaction needs verification. Be sure to check the status of every credit and debit card you plan to bring.
Review Fees, Limits, and Expiration Dates
Understanding the costs associated with card usage abroad can save you significant money over the course of a trip. Review the terms for each card to identify foreign transaction fees. These are often assessed as a percentage of each purchase made outside your home country, often around 1 to 3%, though sometimes more. Selecting a card with no foreign transaction fee can notably reduce the overall cost of eligible purchases.
You should also review daily ATM withdrawal limits, card-network exchange rates, and potential out-of-network ATM surcharges.
Finally, check the expiration date on every card to ensure none will expire while you are away.
Save Important Contact Information
Keep your financial institution’s customer service and emergency contact numbers in a location separate from your physical wallet. Save these phone numbers securely in your mobile device, and consider keeping a written backup in a safe place, such as your luggage or hotel room. Having immediate access to these contact details is essential if your wallet or phone is lost or stolen, allowing you to quickly report missing cards and prevent unauthorized activity.
Consider Account Alerts
Your cards are equipped with a variety of controls and alerts that can keep you informed about account activity. Log in to your accounts and review your settings to ensure you get the information you need while you’re on the road. This could include transaction types and amounts, location alerts, or general security notices.
Choose the Right Payment Method While Traveling
Selecting the appropriate payment method for each transaction can enhance your overall security and minimize risk. Different payment tools offer unique benefits depending on where and how you are spending.
Use Credit Cards for Many Purchases
Credit cards are often an ideal choice for everyday purchases while traveling because transactions draw against a line of credit rather than directly from your checking account. Credit and debit cards carry different federal protections regarding unauthorized transactions, and specific policies or benefits vary by issuer.
Furthermore, service providers such as hotels and rental car companies frequently place temporary authorization holds on cards. Utilizing a credit card for these reservations ensures the held funds affect only your available credit limit rather than temporarily restricting access to your actual bank balance. Some cards may also offer optional travel benefits or rewards, depending on your card agreement.
Consider Using a Digital Wallet
Digital wallets offer a high level of security by utilizing tokenization and transaction-specific encryption. This process processes payments without exposing your actual card number to the merchant. While contactless payments are widely accepted in many domestic and international destinations, availability varies, so they may not be supported everywhere.
To protect your financial information, secure your smartphone or smart device with a strong passcode and biometric authentication, such as facial or fingerprint recognition. Travelers should always carry a physical backup payment method in the event their device is lost, damaged, or runs out of battery power.
Use ATMs and Cash Strategically
While digital payments are increasingly common, physical cash remains necessary in many travel situations. Managing cash access carefully helps you avoid exorbitant fees and security hazards.
Use a Debit Card for Cash Withdrawals
When you need local currency, using a debit card at an ATM is typically the most direct approach. Select reputable, bank-operated ATMs—preferably located inside a bank branch—and always review any displayed fee disclosures on the screen before finalizing your transaction.
Keep in mind that international ATM fees may be assessed by both the ATM operator and your home financial institution. Avoid using credit cards at ATMs whenever possible, as cash withdrawals on credit cards are generally treated as cash advances, which trigger immediate interest charges and additional fees.
Understand Dynamic Currency Conversion
When paying with a card or withdrawing cash abroad, some merchants and ATMs may offer Dynamic Currency Conversion (DCC), which calculates the transaction in U.S. dollars instead of the local currency. While seeing your total in U.S. dollars may seem convenient, DCC frequently includes hidden exchange-rate markups or extra administrative fees. Carefully review the exchange rate and disclosed fee structure before agreeing to the conversion. Travelers who prefer to let their card network handle the exchange rate typically choose to be billed in the local currency, though you should always remain aware of your specific card’s fee structure.
Keep Some Emergency Cash
Carrying a modest reserve of cash provides a helpful safety net during travel. Small businesses, local transportation, tipping situations, and rural vendors often operate on a cash-only basis, and electronic payment systems can occasionally experience unexpected network outages. The appropriate amount of cash depends on your specific destination, itinerary, and access to secure ATMs. Rather than carrying large sums, maintain a practical amount tailored to your immediate needs.
Protect Your Payment Methods and Have a Backup Plan
Physical security measures are your first line of defense against loss or theft. Developing a contingency plan ensures that a missing wallet does not disrupt your entire trip.
Keep Cards and Cash in Separate Locations
Avoid storing all of your payment tools, identification, and cash in a single purse, wallet, or bag. Instead, divide your financial assets. Consider keeping a backup credit card and a portion of your cash stored separately from your primary wallet. Secure options may include a hotel room safe or a concealed body pouch, depending on your travel environment and personal preference. Only carry the specific cards and cash required for the day's activities to minimize potential losses.
Know What to Do If Your Card or Wallet Is Lost or Stolen
If a card is missing, act immediately to secure your accounts. If possible, log in to your account and temporarily lock or freeze the card right away to block new charges. Next, contact your issuer's customer service line to report the loss or theft, and inquire about emergency replacement cards or temporary cash disbursement options.
If a crime occurred, file a report with local law enforcement, as official documentation is often required when submitting insurance or benefit claims. Finally, monitor your account statements closely—both on your trip and after you return home—and report any unauthorized charges immediately.
Travel Smart, Travel Safe
Protecting your finances while traveling requires a combination of early preparation, strategic payment choices, and vigilant physical security. By reviewing card policies before you depart, using credit cards or digital wallets for routine purchases, navigating ATMs prudently, and storing backup funds in separate locations, you can safeguard your money and minimize travel payment snags and unexpected costs.
Before embarking on your next journey, log in to our website or mobile app to review your accounts, manage account alerts, verify card fee structures, and explore available travel card safety tools.