If you are planning a trip abroad, you should consider how you will handle your finances. In addition to booking hotel rooms, rental cars and attractions, you need to be able to access cash from your accounts. While you can use traveler's checks, you can also use the foreign currency or your own credit cards. Take proper precautions when using either of these options.
Contact your bank and ask about foreign currency transactions. You will likely pay a heavy surcharge on withdrawals in a foreign land. You might consider converting some money while still stateside.
Keep your ATM withdrawals to a minimum. Since you'll likely be facing major transaction fees, pull out enough cash to last you a few days or a week, depending on your expenses. However, make sure to make your withdrawals close to your hotel. Bring the funds immediately back to the hotel and from then on, only carry what you need.
Do not carry enormous sums of cash--either in American dollars or in foreign currency. Cash is completely unprotected and does not leave a paper trail. Preplan expenses, if possible, and pinpoint those that require cash.
Notify your bank before you travel abroad. Most major banks now periodically check all accounts for suspicious activity. If you fail to notify your bank and start making transactions with your card 5,000 miles away from your home, your bank may place a hold on the account.
Contact your creditors to determine how much is charged per transaction. This is usually a percentage of each charge. Find out which of your cards offers the most competitive rate and bring that one along.
Research new credit cards. Some offer reward programs for international travel. Some offer very low foreign transaction fees. Do ample research before using any credit card abroad.
