Banking on the Road

Even more than what to pack, finances can complicate the plans of someone who is a long-duration, RTW or gap-year traveler to the point of frustration. Many questions arise like what bank to use to avoid high ATM fees, foreign currency exchange fees etc. Also you might be concerned about how your bank will treat you if your bank card is lost or stolen. Will they ship a replacement card to an overseas address? Is there dollar limit that you will be responsible for in the case of fraudulent charges? How about accessing your bank account online? Is your bank secure? Do they have an option to set up online bill pay? These are all things to consider and have sorted out BEFORE you have problems.

The best place to start, if you already have a bank you’re happy with, is to call them and address your concerns. Find out how much they charge to convert transactions from U.S. dollars to Thai Bhat. Ask how much you will be charged to withdraw cash in Guatemala. Find out if you will be able to access your account from Romania.

If your bank charges too much – or you’re otherwise unhappy with them

The consensus view amongst most experienced travelers seems to be that credit unions offer the lowest fees as far as withdrawing funds from ATM’s around the world or conversion to foreign currency. Most credit unions are exclusive and eligibility for membership is based on being employed by a certain company or belonging to a certain organization. Chances are, however, that you can become a member somehow or another. Ask around.

The biggest disadvantage to a credit union is that they are usually only set up to serve customers in a local area or region and are the least likely of institutions to be able to offer you much help in an emergency abroad. They might also only have limited hours that you can contact them which doesn’t help much if you’re in Mongolia and the four hours of phone service per day don’t fall within your bank’s operating hours.

The bank that I have found that is most robust and low-cost for travel purposes is HSBC. They have branches worldwide, 24 hr/day customer service, no fees for foreign transactions and no ATM fees. Transfers via ACH both in to and out of my account happen very rapidly and with little hassle (although they do charge a fee to transfer money out). If you need online bill pay, HSBC offers that feature too. I have never lost my HSBC card so I don’t know how their replacement works, but I would assume, since the bank is worldwide that they can send a replacement to a local branch or possibly to your accommodation.

I’d also like to go ahead and give a nod here in favor of American Express. They do charge a nominal foreign transaction fee – but with a very favorable exchange rate. I have lost my AMEX card while traveling. I lost the card in London during a layover – they overnighted me a new card to my hotel in Prague. AMEX also offers emergency cash services where they’ll send you traveler’s checks to help you through if you have some disaster and lose all your cash and cards. Their travel services have also bailed me out of some pretty tight spots.

Security:

Physical security of your belongings deserves a write up of it’s own but for now I’ll go ahead and touch on a few key points. First, petty theft is as prevalent at home as it is abroad – though for some reason pickpockets seem to be more aggressive overseas – or maybe that’s just because when people travel they look like foreigners. Do Parisians encounter pickpockets in the U.S.? I’ve never noticed any in the U.S. but in Paris…wow! Anyhow, point is, despite what’s broadcast on Fox News, the world isn’t evil and isn’t out to get you. Wherever you go, there are people just like you who want a safe place to live. They have children and parents and friends. In all of these places, there are those who are the bad element but they are in the minority. The difference is, at home, you know what areas to avoid and in a strange city, you might not. You should always take precautions to protect your belongings whether at home or abroad. Many popular solutions include:

• The neck wallet – with a kevlar cord that prevents it from being cut. These should be worn inside your clothing though or you’ll be sending a screaming message of “I’m an easy mark!”
• The money belt – pretty self-explanatory. It’s a belt with pockets for your money. These are fairly inconspicuous but most lack room to store your passport – which should always be kept very secured.
• split up your money and cards. The stategy here is that if you do get pick-pocketed you won’t lose all of your cash/cards. Keep a few bills in a pocket, some in your socks – you get the idea. Disadvantage – I tend to not be able to keep track of where my money is or how much I have.
• I’m thinking about getting one of these: It’s sort of like a money clip, it’s sort of like a wallet. Put some cards and bills in it and then clip it to the inside of your waistband – or even clip it to the waistband of your underwear. You could also attach a lanyard to a belt loop to prevent losing it. Still no room for a passport, but looks like a much more convenient solution than the neck wallet or money belt

As for data security – the topic has been covered on The Life Nomadic though not specific to banking and finance this article on data security while traveling will give you some good pointers on how to keep your private information private.