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Financial Well-being

3 Smart Money Moves When Traveling Abroad

Consider these tips when planning for international travel and perhaps save yourself time, money and headaches.

Key Takeaways

  • Before you travel, research the exchange rates and fees for different methods of payment in the countries you'll be visiting.
  • When using an ATM abroad, choose the local currency to avoid additional fees. 
  • Make sure you have the right protections in place to prevent fraud or to quickly address it if it happens.

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As we get into gear for international travel, a few quick steps to prepare your finances before you board a plane could reduce stress once you’ve landed.

 

Vacationers often overlook financial matters that may save precious time, money and just plain headaches when traveling internationally. Having a credit card declined because your bank suspected a fraudulent international charge could ruin a dinner on vacation, for example. Or failing to change your currency before leaving a “closed currency” country could force you to leave behind a significant amount of money. You could even run into problems after you’ve returned home, if you find you were charged a litany of ATM and foreign transaction fees.

 

Here are a few tips and considerations that can reduce such headaches related to foreign travel, along with a look at Morgan Stanley’s cash management solutions that can help.

 

1. Using Cash Abroad

 

Cash can be one of the most cost-effective and convenient forms of payment when you're out of the country, but key considerations remain. For instance, you'll still need to know the exchange rate and whether it's a closed currency country—meaning money can't be exchanged outside the borders. Keep this in mind because you'll need to either spend or exchange any remaining foreign currency before you leave the country.

 

2. Cards and Fees

 

ATM and foreign transaction fees can rapidly add up when making purchases or withdrawing cash abroad. Whether your preference is a credit or a debit card, bring only the cards that you’re going to use, and the ones that you’ve confirmed don’t charge fees. If you withdraw local currency at an ATM, your bank could charge you $1 to $5, and you could pay 1% to 3% of the transaction amount. The owner of the ATM may even tack on an additional fee.

 

International ATM options can sometimes be confusing at times. Consider choosing an ATM from a reputable bank that you recognize. Be sure to select withdrawal in the local currency to eliminate the ability for the ATM owner to charge a fee and an exchange rate that your bank may not be able to identify or reverse. 

 

With the Morgan Stanley CashPlus Brokerage Account, clients have access to unlimited ATM rebates worldwide and will not incur foreign transactions fees when they use their associated Morgan Stanley Debit Card.1

 

3. Protecting Yourself From Fraud

 

While debit card fraud is a risk both at home and abroad, it’s one of the last things you want to deal with while traveling. The ongoing battles between thieves and financial institutions can create some unexpected collateral damage. Banks can quickly shut down your account after noticing your card was used in a foreign country. With effective monitoring in place to protect your card from fraudulent activity, before departing, it’s always a good idea to have a phone number on file with your bank in the event they need to contact you if a transaction comes into question.

 

Take common sense steps to prevent criminals from gaining access to your card number. You may want to consider limiting your debit card use to ATM withdrawals at banks, which may have better security. The Morgan Stanley Debit Card can help reduce the risk of fraud through chip and PIN technology, a global standard in security that encrypts your information. In addition, you can stay up to date on your Debit Card activity with alerts that are right for you. You can monitor transactions made outside the U.S. or track transactions made online or over the phone. Should you suspect fraudulent activity, you can lock or unlock your card at any time on Morgan Stanley Online or Mobile.

 

In addition, CashPlus Brokerage Account holders also have access to complimentary Identity and Credit Protection from Experian® which can provide an extra layer of protection and peace-of-mind in case fraudulent activity occurs. 

 

Footnotes:

1 In the event international ATM operators don’t report these fees to Morgan Stanley, the client may need to contact Morgan Stanley to have the ATM fee rebated. Reserved and CashPlus clients are eligible for unlimited global ATM fee rebates. All other clients are eligible for up to $200 in annual global ATM fee rebates.

2 Qualifying Cash is defined as new cash proceeds into the Banks in the last 30 calendar days, inclusive of deposits from external sources and proceeds from the sale of money market funds, mutual funds, fixed income, equities and all other securities, net of any cash outflows, in a client’s brokerage account. Net proceeds from weekends and holidays will be included if they immediately precede the first day of the 30 day period.

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Banking products and services are provided by Morgan Stanley Private Bank, National Association, Member FDIC. 

Deposits will be held at Morgan Stanley Private Bank, National Association (MSPBNA) and/or Morgan Stanley Bank, N.A. (MSBNA) (Banks) for a total potential promotional balance of up to $10,000,000 across the two Banks.

Qualifying Cash balances are calculated based on the prior day's ending Bank Deposit Program balance.

Preferred Savings Program for Qualifying Cash is only available to brokerage accounts. An account at MSSB is either a brokerage account or a managed account. Managed accounts are accounts which are enrolled in certain advisory services offered at MSSB. All other accounts are “Brokerage Accounts.” For more information about managed accounts, please contact your Financial Advisor or Private Wealth Advisor or go to www.morganstanley.com/ADV.

Certain account types including government entities and financial institutions are not eligible for Preferred Savings Program for Qualifying Cash.

Preferred Savings Program for Qualifying Cash is available to clients with a legal address of record in eligible countries.

Other restrictions may apply.

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Under the Savings and Preferred Savings Programs (“Savings”), Morgan Stanley Smith Barney LLC makes available interest-bearing FDIC insured deposit accounts(s) at either Morgan Stanley Private Bank, National Association or Morgan Stanley Bank, N.A., each a national bank, Member FDIC, and an affiliate of Morgan Stanley Smith Barney LLC, as selected by the client. Deposits placed in Savings are eligible for FDIC insurance up to $250,000 (including principal and interest) per depositor, per each bank selected by the client for all deposits held in the same insurable capacity (the Maximum Applicable Deposit Insurance Amount). All deposits per bank held in the same insurable capacity will be aggregated for purposes of the Maximum Applicable Deposit Insurance Amount, including deposits maintained through the Bank Deposit Program. The client is responsible for monitoring the total amount held with each bank. The bank also reserves the right to offer promotional rates from time to time. Detailed information on federal deposit insurance coverage is available on the FDIC’s website (https://www.fdic.gov/deposit/deposits/).

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