Traveling Soon? Use This Checklist to Keep Your Finances Safe

Travel is supposed to be fun, not stressful. 

But considering how expensive travel has become in recent years, many travelers have money on their minds while they’re vacationing. So the last thing you want to add to your list of worries is a financial setback, like having your wallet stolen or getting your credit card account frozen.

Fortunately, with a little preparation, you can avoid common issues like these. Here’s what you can do to prepare for a vacation that’s free of financial problems.

Pre-travel checklist

Before you leave home, make sure your finances are prepared for your trip by checking these six action items off of your to-do list. 

Notify your bank

Problems can arise if you suddenly use your debit card or credit cards in a new destination. So before you leave town, place a travel alert with your bank and credit card companies to let them know when and where you plan to travel. When you do, you won’t have to worry about getting fraud alerts, having transactions declined or having your accounts frozen. 

Keep copies of important documents

Ideally, you won’t need copies of your financial documents. However, it’s best to take them with you to avoid unnecessary interruptions or emergencies. Make sure you have both physical and digital copies of the following documents accessible:

• Passport
• Driver’s license
• Flight information
• Receipts for bookings such as hotels and car rentals
• Travel insurance receipt

As an added safety measure, take a list of your emergency contacts, along with phone numbers for your bank and credit card companies.

Schedule your bills

Will any of your bills be due during your trip? If so, pay them in advance or make sure they’re set up for autopay. That includes your rent or mortgage, utility bills and debt payments. The last thing you want is to come home to interrupted utilities, late fees or problems with creditors.

Research local spending customs and resources

In most locations, the safest way to make purchases is with contactless payment methods or a credit card that has chip-and-PIN technology. However, in some destinations, you’ll have to look out for threats like credit-card scanners. 

So before you travel abroad, check for Travel Advisories to find the following Safety and Security information related to payment methods:

• Where it’s safe to use credit cards
• How to find secure ATMs
• When it’s recommended to use cash 
• Where to go for currency exchange
• Which credit cards are widely accepted

Account for foreign transaction fees

Some travelers don’t realize that using debit and credit cards in other countries can be costly. If you’re not prepared, you could get slammed with a variety of fees for each transaction. 

In preparation for your trip, check out the terms and conditions for your cards so you can avoid these unnecessary fees:

• International ATM fees: Your financial institution may charge a flat ATM fee, or a fee of 1% to 3%, every time you use an ATM overseas. If so, check to see if there are any fee-free ATMs near your destination. Additionally, check to see if there are limits on your ATM withdrawals.
• Foreign transaction fees: Some cards have $0 foreign transaction fees, making them good choices to use when you’re abroad. But the typical foreign transaction fee is 3% of the transaction amount. 

Consider how much cash you’ll need

The amount of cash you need depends on your destination. Some travel sites recommended taking $50 to $100 per traveler, for each day you’ll be away. But you may want to adjust that amount depending on how safe it is to carry cash or use credit cards in your destination.

Whatever amount you land on, make sure you always carry enough cash to pay for transit back to your hotel and to cover any small expenses that could come up unexpectedly.

At your destination

While you’re away, you’ll want to be thoughtful about where and how you use your credit cards, debut card and cash. Here are some safety guidelines to keep in mind while traveling.

Spread out your money

When it comes to carrying cash, you should only carry the amount you need for the day, and be sure to spread your cash around. Instead of keeping it all in a wallet that can easily be stolen, put some in a money belt, your handbag or a front pocket.

You can keep your extra cash and valuables in the hotel safe. That includes your passport, financial documents and backup credit card. Just make sure you set a reminder to remove your items from the safe before you head home.

Monitor your accounts regularly

While you’re away, take a moment to review your bank and credit card accounts daily. Looking over your recent transactions will help ensure that you can catch and report any unauthorized charges right away.

You should also hold onto the receipts for your card purchases and ATM transactions. That way, you can dispute transactions if you’re charged the wrong amount. 

Be wary of scams and pickpockets

It’s easy to get distracted when you’re enjoying the sights and sounds of a new location. But there are precautions you can take to ensure you don’t get caught up in the excitement and become a target for thieves. Here are a few things to be aware of:

• Friendly strangers: There’s nothing wrong with making friends while you travel, but be cautious with overly-friendly strangers. In some locations, helpful strangers may offer you help or gifts and then demand compensation, or they may get close to you in order to access your cash or valuables.
• Booking scams: Scammers can use a variety of creative tactics to sell tourists fake excursions or hotel bookings. Avoid trouble by only booking your accommodations through reputable companies that have secure websites and positive customer reviews.
• Remote ATMs: ATMs are often targets for criminals, since they quite literally dispense cash. To be safe, only use ATMs at major banks or in well-trafficked, well-lit areas. Avoid machines that appear to have been tampered with. When you type in your PIN, use your free hand to cover the PIN pad. 

Avoid public wi-fi networks

Having access to public WiFi can feel like a life-saver when you’re traveling. But when you use a public connection, hackers may be able to intercept your passwords or other sensitive information shown on the websites you access, including your financial apps.

To keep your information safe, use the secure WiFi provided by your hotel or your vacation rental host. Alternatively, you can set up a virtual private network (VPN), which is a security tool that encrypts what you browse so hackers and advertisers can’t see the data.

A little preparation can keep your finances safe

It’s easy to make financial mistakes when you’re in a new setting. If you’re sight-seeing abroad, or relaxing on a tropical beach, the last thing you want to think about is keeping your money and valuables safe. So if you want to enjoy a worry-free vacation, the best thing you can do is follow a few simple safety steps to prepare. Wherever you’re going, be sure to research the travel advisories, and plan ahead for how you’ll secure your cash, cards and valuables.