Avoid A Sticky Financial Situation While Traveling By Taking This Step Before Leaving

Many major banks, credit card issuers, and financial institutions in the United States are well aware that their clients are frequently on the move. In the past, not telling your bank or card issuer that you'd be leaving the country meant you'd likely see "card declined" when trying to skirt a foreign transaction fee and earn extra miles for a meal or a train ticket, or getting around a sneaky ATM fee overseas. Today, fraud detection software can recognize when a traveler will be in a particular country as well as the customer's typical behavior patterns to authorize transactions, making this an extra step that some major banks don't necessarily need.

Banks including Chase, American Express, Capital One, and Bank of America, make note that account or card holders will not need to tell them that you're traveling in the country or abroad. Other banks, including Citi, Barclays, U.S. Bank, and Discover, all recommend adding a travel notification to your account before taking off. You can normally do this by phone or online through your banking or credit card app.

That being said, it still doesn't hurt to take the step to let your issuer know beforehand if you will do something irregular, especially if you're planning to make a big purchase or go on one of Europe's best shopping experiences. This may save you from the sticky situation of having your cards mistakenly locked while traveling. You may also run into a problem if you're using a card you've never used before in a foreign country, or trying to pull large amounts of money from an ATM. If you rarely pull cash out, your bank may spot a red flag and block your account. So, it's good to give your bank a heads up, just in case.

According to the World Economic Forum (via Cyber Security Intelligence), the world's third-largest economy is cybercrime, coming behind the United States and China and costing companies, banks, and consumers $8 trillion in 2023 and potentially $10.5 trillion in 2025. Criminals will commonly skim cards at ATMs or at the point of sale for key information, including the user's name, card number, and security code, then sell it on the dark web or to other criminal organizations. Once your PII (personally identifiable information) is out there, it's almost impossible to scrub it from the web, and the more complete it is in the hands of wrongdoers, the more valuable you are to them.

You can play solid defense by protecting your cards, cash, and accounts before you depart. Your first line of defense is a money belt that can give you peace of mind as you walk through crowded markets or streets. You can also add a second layer by setting up purchase or fraud alerts on your phone and email for transactions made with your cards. Fraudsters often use phantom payments, or very small charges (a few cents or dollars) that a user would not remember or bat an eye at when they casually read their monthly card statement, to check whether a card or account is still active before selling it. Even though they can be annoying, setting your alerts to the minimum amounts can help you stay aware of potential threats on the horizon that can derail your trip, or worse. Moreover, if a card reader or payment device looks suspicious, don't use your card and opt to pay cash instead, or find another ATM.