Using credit cards and traveler's check abroad is a convenient way to manage finances while traveling overseas. Both credit cards and traveler's checks provide a modicum of financial security for the international traveler; unlike cash, both can be replaced or canceled. Traveler's checks are used less frequently but international banks will still recognize them. Credit cards are accepted all over the world, but they are best used for large purchases. (See reference 2)
Contact your credit card company and inquire about fees for international purchases. Visa and MasterCard charge an interbank currency exchange fee of about 1 percent, and most credit card companies attach a fee of their own as well.
Inform your credit card company about your travels. Provide a list of each destination to prevent the company's system from flagging your card for fraudulent activity.
Keep your credit card close to you in a safe place. The safest places are front pockets or in a money pouch strapped around your waist and kept underneath your shirt.
Use your credit card for bigger purchases such as airline tickets or hotel and restaurant bills. A fee will be attached to each purchase individually, so using your card for multiple smaller purchases can add up as time passes.
Inquire at your bank about the upfront fees for travelers checks.
Research the countries you are visiting. Contact a centralized hotel concierge in your destination cities before you leave and ask them which local businesses will accept traveler's checks.
Cash one-third to half of your traveler's checks at your first destination city. Larger cities will have more banking options. You will most likely have to pay a fee to the bank and a currency exchange fee in order to cash your traveler's checks. Some smaller businesses only accept cash; if you are planning on traveling to smaller towns make sure you have enough cash to last a few days. If you plan on staying in larger cities, you may be able to use your traveler's checks for most purchases.
Carry your traveler's checks and cash in different places. Create an emergency cash stash in a place that is inaccessible to anyone else. Carry only as many traveler's checks as you need.
