How to use your Debit Card when you are Abroad

Are you planning to travel overseas for business or pleasure? Do you want to avoid the problem of taking cash and also avoid worry about it being stolen or lost? Using a debit card instead of cash is a very good option.

Why use Debit Card abroad?

Listed below are the benefits of using one

• Convenient - Using a debit card frees you from the trouble of carrying cash needed for your stay.
• Cheap – It is fairly cheap to use a debit card.
• Better exchange rates – The exchange rates offered on the card is always better than what is offered by the banks.
• Easy withdrawal – Cash can be withdrawn any time of the day from the ATMs. So you do not have to go to a bank every time to withdraw cash.

Will my Debit Card work abroad?

Since debit cards are issued by so many different financial institutions, it is difficult to say exactly if the debit card will work or not. However, in most cases under usual circumstances it will. There could be some exceptions though.

To reduce problems when using one abroad, do the following

Research ATM Networks

Debit cards are linked to the financial institution through a group of computer networks. Take your debit card and see the reverse side. A group of ATM network logos is shown. You have to ensure that each foreign ATM machine is part of your financial institution’s network. Two of the largest ATM networks, Maestro and Cirrus, belong to MasterCard. The Plus network is owned by Visa.

Research ATM Locations

The exact location of ATMs can be found out online. Both Visa and MasterCard offer this facility. In most countries, you will find ATMs everywhere. There are exceptions too. In Turkmenistan Maestro or Cirrus ATMs cannot be found. In Serbia you will not find any Plus ATMs. In case you are planning to visit these places you will have to find other alternatives.

Inform your financial institution

At least two months before you will travel, inform your financial institution about your plan to use your debit card abroad.

First inquire if the Personal Information Number will work abroad or not. Usually a four digit PIN works in most cases. In case you have a five digit PIN, request for a four digit one and commit it to memory as many foreign ATMs do not recognize a five digit PIN. If your PIN has zeroes ask if it will present problems in non-network ATMs.

Next ask about the overseas transaction and currency conversion fees. Compare it with those charged by your credit card company. These fees differ vastly from company to company. Ensure that you get a fair deal.

Generally, most banks, credit unions and credit card companies stop the services of the customer’s card when it is used beyond the customer’s usual range of travel. To avoid this, inform your financial institutions when and where you will be using your card.

Confirm your balance

Ensure that the money in your account will be enough for your trip. To be short of cash could be very difficult for any traveler. You could deposit some extra cash in your account to avoid any such problem.

Be aware of your limit

Most ATMs have a withdrawal limit which could be different from that of your financial institution’s. Find out about your financial institution’s limit. If you face a lower withdrawal limit, think about another option.

Verify your statements

Once you are back, keep checking your bank statements for a while. In case of any unusual charge on your statement, your financial institution has to be informed immediately. You should also request for a copy of the receipt.

Develop a Backup Plan

Traveling with only your debit card could be a terrible experience incase it is lost or stolen. It is always better to travel abroad with some other form of money. It would be also advisable to take along with you a list of telephone contact numbers in case you lose your ATM card.

Once all the above said things are taken care of, using a debit card abroad is very convenient and easy.