If you're one of the many Kiwis setting off on a hard-earned international holiday, the last thing you want is to lose your fun money to sneaky fees or even an outright scam. But our guard can come down when we’re overseas, leaving us vulnerable. Finance expert Frances Cook shares five key ways to protect your wallet when you're away.
1. Add your bank to the list of people you’re telling about the holiday
Let me paint a picture for you. You’re out at a beautiful Italian restaurant… in Italy. The pasta was beautiful. The dessert sublime. The wine flowed. The waitress earned every euro of the generous tip you’re planning to give.
And then your card is declined. Because you didn’t warn your bank that you were heading overseas, so they detected unusual activity, and blocked it in a bid to protect you from scammers.
It’s important to let your bank know where and when you’re heading off, so that you don’t run into this problem.
Many banks even let you alert them to travel plans from your app, so there’s no excuse. Give them a heads up, and save yourself the headache.
2. Keep your card in sight
While you’re out enjoying the nightlife, make sure you also keep your eyes on your card.
It’s common for hospitality staff to take your card away to process a payment, but you only need one person who's up to no good for that to go seriously wrong.
It’s easy to go with them to process the transaction, without making a fuss.
3. Check ATM fees
They’re a handy way to get out cash, but if you’re not careful, you’ll be charged a fee by both the foreign ATM, and your bank back home.
Most ATMs will have a sign that declares their fees, so check for that, and avoid it if you can’t see one.
Many ATMs also do a flat fee for withdrawals, so it’s worth planning ahead so that you only need to do a few, larger withdrawals.
4. Go for ATMs that are attached to a bank
While you’re in a foreign country, it can be confusing to work out what’s legitimate, what’s legitimate-but-expensive, and what’s an outright scam.
One shortcut? Sticking to ATMs that are in, or on the outside of, a bank building.
5. Take more than one payment method – and keep them in different places
This one helps protect against both bad guys, and what I like to think of as holiday brain.
We’ve all been there; you’re on holiday, you don’t want to be sensible and overthink everything, then suddenly you realise your card slipped out of your pocket while on that grand hike, never to be seen again.
Two cards, stashed in different safe places, is a good way to make sure the fun times don’t come to a screeching stop as you find yourself stranded with no cash at all.
You want to spend your time tripping through the sights, not trudging over to the embassy for help.
Information in this column is general in nature and should not be taken as individual financial advice.
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