Pack Your Wallet for Travel

You've probably set a budget for your upcoming trip, but have you considered how you'll access those funds while traveling? Don't let international payment modes catch you off-guard; use these tips to pack your wallet as carefully as you pack your suitcase.

• Credit card: Travelers tend to rely on their credit cards for travel expenses because most vendors accept major credit cards. The exchange rate charged may be better as the market fluctuates, but most credit cards charge a foreign transaction fee as high as 3 percent, so check your accounts to find the best offer. This is a safe solution for major purchases like hotels and restaurants.
• Cash: Even in today's electronic world, you'll need cash for outlets that don't take plastic. The "chip and PIN" technology prevalent in Europe can be an issue for magnetic-stripe card use at a self-service kiosk like train stations or vending machines. Shop around before you leave to get the best exchange rate on currency; bringing cash covers you until you can find a proper exchange source.
• Prepaid card: Wildly popular, these reloadable cards give you secure access to your funds and also help you stick to your budget. Buy prepaid cards before you leave and use them to make purchases and ATM withdrawals. Plus, they come with all of the protection of your credit card.
• Alerts and back-ups: Avoid frozen accounts by notifying your bank of your travel plans. Sudden expenses that are out of character can trigger a security shut-down, leaving you without access to your account. Also check the bank's emergency procedures: How long would it take to get a replacement card if yours was lost or stolen? Record the international toll-free number for your bank, and have a back-up plan to cover expenses in an emergency.