Traveling abroad can be an exciting and enriching experience, but it involves its own set of challenges – especially when it comes to managing your finances, healthcare, and other practical considerations. Through careful planning and some research, you can avoid unexpected fees, navigate unfamiliar systems, and stay safe while making the most of your international adventure.

Using a credit card while abroad

Most credit cards will charge a fee for any foreign transactions, which can inflate the costs of an international trip. If traveling or living abroad, it might be worth obtaining a card that does not include a foreign transaction fee, such as a travel reward card. When considering which credit card to use abroad, it is also worth researching which issuers are widely accepted in the countries that you are visiting to avoid being unable to use your card at certain merchants when you arrive.

It is also important to inform your bank that you will be traveling abroad, as banks may incorrectly flag an international purchase as fraud and lock your account. You should also set up alerts for your credit card if you haven’t already done so – this will allow you to monitor any fraudulent activity while abroad and address anything incorrectly flagged as fraud as soon as possible.

Currency exchange

While abroad, some merchants or ATMs may offer dynamic currency conversion (DCC), which allows you to pay in home currency for a given exchange rate plus additional fees. The given exchange rate may be marked up from the actual exchange rate at that time. DCC allows a customer to know the exact price of the transaction at that time without worrying about a fluctuating exchange rate.

If you choose to purchase something in a foreign currency, your bank will then complete the conversion at a later time, typically at an exchange rate that is closer to the interbank exchange rate. For some issuers, the purchase in the foreign currency may also incur an additional fee, although this fee is typically less than the cost associated with DCC.

If you would like to carry cash in a foreign currency, consider ordering it from your bank ahead of time. This will help you avoid waiting in long lines at a currency exchange in the airport and allows you the flexibility of having currency when you need it.

Healthcare coverage

When traveling abroad, it is also important to ensure that you still have health insurance in the event of a medical emergency. While some U.S.-based insurance providers offer complete coverage while abroad, others may only offer partial coverage or no coverage at all. In addition, foreign care may be considered out-of-network and incur additional charges.

If you do seek medical care while abroad, you may have to seek preauthorization from your insurance provider and provide more documentation than you would typically need for coverage in the U.S. Most insurance companies are not able to pay foreign healthcare providers directly, so be prepared to pay upfront for any costs and seek reimbursement from your insurance company afterward. Instead of relying on your existing U.S. healthcare coverage, it might be a good idea to purchase separate travel medical insurance that offers more comprehensive coverage while traveling abroad. You can purchase this type of coverage as standalone insurance or as part of a comprehensive travel insurance package, which will also include insurance in the case of trip delay, trip cancellation, or lost baggage. Occasionally, medical evacuation insurance may be sold separately – this is the insurance that covers emergency transportation to the nearest facility for treatment.

Driving while abroad

If your travel plans include renting a car while abroad, you should check whether your destination country requires an International Driving Permit (IDP), which is a translation of your driver’s license that is recognized in over 150 countries. For example, Italy, Spain, and certain states of Australia all require IDPs to legally drive.

It is also important to learn the rules of the road, including speed limits, traffic signs, and which side of the road to drive on. You should also consider learning the local driving customs and culture. In case of an accident, it is useful to memorize the appropriate emergency numbers and learn a few key phrases in the local language.

Mobile devices and data connection

Staying connected while traveling abroad is crucial for navigation and handling any emergencies. Before traveling, check with your mobile provider about international roaming fees and data plans. For some plans, it may make sense to purchase a temporary international data plan. You can also purchase a prepaid local SIM card in your destination country to avoid roaming charges or purchase an international SIM card before your trip. In the event of spotty or no internet access, download any offline maps before your trip. Consider using an offline translation package to make it easier to communicate in areas with limited connectivity. In addition to these precautions, you should keep a list of important phone numbers with you, including your hotel, the nearest embassy, and local emergency services.

Conclusion

Traveling abroad can be an exciting change of pace, an opportunity for exploration, or an enriching experience – but cultural and practical barriers can interrupt any trip without the proper planning. Being aware of monetary, legal, and customary differences can prevent inconveniences along the way and can serve to protect the safety, experience, and pocketbook of all travelers.