If you have plans to travel, you might be thinking about how you’ll pay for expenses while globetrotting. You have more than a few options - credit cards, prepaid travel cards and cash - but one of the safest and most convenient is your debit card.
Read more: 8 ways an Ally Bank Spending Account can simplify your finances.
Benefits of using a debit card while traveling
Traveling with a debit card has several advantages.
Convenience
Your debit card is a great option because it allows you to access money directly from your bank. If your debit card is a branded VISA®, MasterCard® or other major credit card company, it can be used at millions of locations worldwide. Plus, if you find yourself somewhere that only accepts cash, you’ll be able to use your debit card to withdraw money from an ATM.
Security
Ally Bank has fraud protections in place for debit cards, and in the event that your card is lost or stolen, you’ll be able to easily lock your card via your account or app.
If you find yourself somewhere that only accepts cash, you’ll be able to use your debit card to withdraw money from an ATM.
Minimize cash usage
If you have an Ally Bank Spending Account, a checking account designed for modern money management, you can access funds without having to carry around large amounts of cash.
Avoid currency exchange fees
Using your debit card to withdraw local currency can help you avoid currency exchange fees when travelling internationally.
How to prepare to use your debit card during travel
If you’re vacationing within the United States, your debit card will work exactly the same as it does at home. Using a debit card abroad is pretty easy to do with most banks, but there are some best practices.
Notify your bank of travel plans
While it’s not always required, it is recommended that you let your bank know, especially if you’re leaving the country. If you don't, your bank may mistakenly flag your card for fraudulent activity and interfere with purchases you are trying to make on the go.
Pay attention to fees
It’s a good idea to budget for any possible fees. One of the more common is ATM usage.
With an Ally Bank Spending Account, you won’t be charged to use any any Allpoint® or MoneyPass® ATMs in the U.S. (Plus, we reimburse up to $10 at the end of each statement cycle for fees charged at other ATMs nationwide.) If you’re leaving the country, make sure to account for an international transaction fee of up to 1% if you need to get cash from an ATM outside the U.S.
You’ll also want to look into whether or not your debit card levies a foreign transaction fee, which can tack up to an additional 3% onto the purchase price when you’re abroad. Those fees would apply to anything you purchase on your trip, so they could add up quickly.
Using your debit card safely abroad
Ensure that you and your money remain safe while traveling in foreign countries by:
Choosing secure ATMs
Monitoring your account regularly
Keeping your bank’s contact information handy
Avoid overdraft fees
Just like at home, vacations can sometimes include unexpected expenses. Whether it’s a spur-of-the-moment souvenir splurge or a surprise medical emergency, you can’t plan for everything. If you’re using your debit card for extra travel costs, you run the risk of overdrafting your account and then facing the fees that often come with it. Building a buffer into your budget for those unforeseen events can keep you a step ahead, but make sure to monitor your account so you can make adjustments if needed.
At Ally, we’ve completely eliminated overdraft fees. If you overspend and exceed your balance, we also offer CoverDraft, an additional safety net that can provide up to $250 of temporary relief. Keep in mind, CoverDraft isn't a line of credit or a guarantee. If your purchase isn't covered for any reason (let's say the transaction exceeds your CoverDraft limit, for example), it will be declined - but we'll never charge you an overdraft fee.
Safe travels
Your bags are packed and you’re ready to go, just don’t forget to let your bank know. As you set off on your next adventure consider bringing your debit card along to help keep you on budget, provide additional security and keep your finances on track.
