Overseas Money Matters
August 3rd 2011 15:17
There are ways to avoid being left without money abroad, by taking a few simple steps before you set off
Travellers preparing to jet off on holiday or on a gap year have been warned to carry both cash and cards after tourists have reported being stranded overseas with no access to money.
Up to six million people experienced problems with their credit or debit cards during their most recent trip abroad, according to research by Travelex, the foreign currency provider.
Although customers are advised to inform their bank if they are planning to go away, this won’t always guarantee that their card won’t be suspended. Banks will issue a stop on cards if they suspect fraud, even when they have been pre-warned about a customers travel plans.
James Daley, editor of Which? Money, says: We get a lot of calls from people who are frustrated because they warned their bank they would be overseas but their card was cut off because of suspected fraudulent transactions. There seems to be little way of avoiding this. It’s really not good enough. There is a balance to be struck between preventing fraud and the convenience of the customer.
Alex Smith calined after a stop was issued on his NatWest card during a holiday in Malaysia and Singapore. He was allowed to use the card twice before his bank suspended any further transactions, and then had a frustrating battle to get the stop lifted.
He says: I found myself with minimal funds and after contacting them online, despite my difficulties, they insisted on a phone call to reinstate my card. I only had the equivalent of £4 left, and the number they gave me kept me on hold for ten minutes.
Customers need to have enough cash or credit on their phone to contact their bank if there is a problem, and it is worth noting the correct number to call from abroad if something goes wrong. Remind yourself of any security information and passwords to ensure you can get through to the right person, should you need to call. However, if you are caught in this situation, be prepared for a nasty shock when you get your phone bill, as the setbacks are not always quick and easy to resolve.
Mr Daley says: When your card gets cut off, getting it reinstated can not only be difficult but costly because you have to carry the bill for calling your bank from whichever country you’re in. It would be perfectly reasonable for banks to carry that cost themselves.
Other holidaymakers told that they had to survive on tiny amounts of cash for days because their bank’s fraud department was not open at weekends. Others were dependent on fellow travellers until the problem could be rectified. Further trouble was caused when new cards were sent to home addresses in the UK, not overseas.
Banks have different approaches to how they treat their customers on holiday. Royal Bank of Scotland and NatWest say that customers who encounter difficulties should call the number on the back of their cards for help. They add that cards will usually be working again within half an hour of a customer calling them.
All banks recommend that travellers take their overseas customer service numbers with them and leave up-to-date mobile phone numbers with their bank in case it needs to contact them. Santander says it is possible to have a card unblocked outside of the customer service centre’s normal working hours. HSBC and Lloyds Banking Group say being notified about travel could help them to make a sensible decision about a transaction if they suspect fraud.
Barclays’ customers can use a holiday flag service on its online banking site to notify the bank of travel plans. The company says it won’t block a card unless transactions prove to be high-risk, and that every effort will be made to contact the customer before suspending an account.
Experts advise anyone leaving the country to carry a mixture of cards by more than one provider, and cash. Prepaid cards are useful because they are not linked to your bank account.
Mr Daley says: “Prepaid cards are a good precaution. Some work out cheaper in terms of transaction fees, and you are not at the mercy of your bank cutting you off.”
Prepaid cards are seen as a modern replacement for travellers cheques, and many come with added security such as 24-hour call centres if a card is lost or stolen. They allow you to load money in dollars, euros or sterling but have the added benefit of Visa, MasterCard or Maestro symbols, meaning they are widely accepted in shops, restaurants and at ATMs while on holiday.
A variety are available, and before making a choice it is wise to check what fees are charged for applying for the card, for paying for services, for withdrawing money from a cashpoint and for topping it up.
Cards loaded in sterling are recommended for use in far-flung destinations, where payment from the card will be converted into the local currency.
Caxton FX and FairFX are popular choices for prepaid cards, and are free to purchase. Caxton FX cards are also free to use when withdrawing cash from ATMs abroad.
Another prepaid card, the Cash Passport, can also deliver a replacement card to any address, such as a hotel. It will also provide emergency cash, which, if sent via Western Union, can arrive in as little as 20 minutes — a feature that the banks won’t always offer, except HSBC and first direct.
Travellers preparing to jet off on holiday or on a gap year have been warned to carry both cash and cards after tourists have reported being stranded overseas with no access to money.
Up to six million people experienced problems with their credit or debit cards during their most recent trip abroad, according to research by Travelex, the foreign currency provider.
Although customers are advised to inform their bank if they are planning to go away, this won’t always guarantee that their card won’t be suspended. Banks will issue a stop on cards if they suspect fraud, even when they have been pre-warned about a customers travel plans.
James Daley, editor of Which? Money, says: We get a lot of calls from people who are frustrated because they warned their bank they would be overseas but their card was cut off because of suspected fraudulent transactions. There seems to be little way of avoiding this. It’s really not good enough. There is a balance to be struck between preventing fraud and the convenience of the customer.
Alex Smith calined after a stop was issued on his NatWest card during a holiday in Malaysia and Singapore. He was allowed to use the card twice before his bank suspended any further transactions, and then had a frustrating battle to get the stop lifted.
He says: I found myself with minimal funds and after contacting them online, despite my difficulties, they insisted on a phone call to reinstate my card. I only had the equivalent of £4 left, and the number they gave me kept me on hold for ten minutes.
Customers need to have enough cash or credit on their phone to contact their bank if there is a problem, and it is worth noting the correct number to call from abroad if something goes wrong. Remind yourself of any security information and passwords to ensure you can get through to the right person, should you need to call. However, if you are caught in this situation, be prepared for a nasty shock when you get your phone bill, as the setbacks are not always quick and easy to resolve.
Mr Daley says: When your card gets cut off, getting it reinstated can not only be difficult but costly because you have to carry the bill for calling your bank from whichever country you’re in. It would be perfectly reasonable for banks to carry that cost themselves.
Other holidaymakers told that they had to survive on tiny amounts of cash for days because their bank’s fraud department was not open at weekends. Others were dependent on fellow travellers until the problem could be rectified. Further trouble was caused when new cards were sent to home addresses in the UK, not overseas.
Banks have different approaches to how they treat their customers on holiday. Royal Bank of Scotland and NatWest say that customers who encounter difficulties should call the number on the back of their cards for help. They add that cards will usually be working again within half an hour of a customer calling them.
All banks recommend that travellers take their overseas customer service numbers with them and leave up-to-date mobile phone numbers with their bank in case it needs to contact them. Santander says it is possible to have a card unblocked outside of the customer service centre’s normal working hours. HSBC and Lloyds Banking Group say being notified about travel could help them to make a sensible decision about a transaction if they suspect fraud.
Barclays’ customers can use a holiday flag service on its online banking site to notify the bank of travel plans. The company says it won’t block a card unless transactions prove to be high-risk, and that every effort will be made to contact the customer before suspending an account.
Experts advise anyone leaving the country to carry a mixture of cards by more than one provider, and cash. Prepaid cards are useful because they are not linked to your bank account.
Mr Daley says: “Prepaid cards are a good precaution. Some work out cheaper in terms of transaction fees, and you are not at the mercy of your bank cutting you off.”
Prepaid cards are seen as a modern replacement for travellers cheques, and many come with added security such as 24-hour call centres if a card is lost or stolen. They allow you to load money in dollars, euros or sterling but have the added benefit of Visa, MasterCard or Maestro symbols, meaning they are widely accepted in shops, restaurants and at ATMs while on holiday.
A variety are available, and before making a choice it is wise to check what fees are charged for applying for the card, for paying for services, for withdrawing money from a cashpoint and for topping it up.
Cards loaded in sterling are recommended for use in far-flung destinations, where payment from the card will be converted into the local currency.
Caxton FX and FairFX are popular choices for prepaid cards, and are free to purchase. Caxton FX cards are also free to use when withdrawing cash from ATMs abroad.
Another prepaid card, the Cash Passport, can also deliver a replacement card to any address, such as a hotel. It will also provide emergency cash, which, if sent via Western Union, can arrive in as little as 20 minutes — a feature that the banks won’t always offer, except HSBC and first direct.
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