Cash ATM Machines
Cash atm machines are very common in all countries now. It is highly unlikely that you will need traveler’s cheques these days. If you are going to a very remote part of a very remote country it may be wise to acquire some traveler’s cheques. However in all the major business cities of the world, ATMs of the major banks work on an international system, branded Cirrus or Maestro or Visa. If you card has one of these logos, cash is readily accessible.
ATM (known as Bancomats in some countries) machines operate in all countries. Make sure you have an ATM card which has the logo Cirrus and/or Maestro and/or Visa on it. This will tell you that the card can be used internationally. Your local bank may not be represented in the country you are going to but an ATM card with one of these logos printed on it (sometimes on the reverse side) will be readily accepted at all ATM machines.
If you do not have one of these logos on your card, be sure to call your bank before you leave home to sort this out. Make sure your personal cash account (savings or cheque account) is attached to this card and your credit card. This way you will have access to your cash and credit and in an emergency you can get a cash advance on your credit card.
Up to date exchange rates are printed in daily newspapers globally, and are available online at any major bank or financial institution’s website. The hotel reception will also be able to tell you the local exchange rate to all the major currencies.
The banks, credit and charge companies are very conscientious and diligent when it comes to international credit card fraud. Managing accounts for customers who are traveling internationally when an anomaly situations arise. All banks have tracking mechanisms on their cards and situations arise where in order to protect their customers, they will suspend the account. This is much more prevalent when you (the bank’s customer) are traveling internationally.
Examples of when this may occur are if you use the card in more than one country on one day. For example, you may fly from Shanghai to Hong Kong in the morning for a meeting and purchase something or buy lunch. Then you may fly Hong Kong to Singapore for dinner and a hotel. This is not a common occurrence and the bank’s anti-fraud system may pick this up and suspend the account. Another example would be if an ATM machine was used on more than two occasions in one day. Sometimes banks have withdrawal limits. If you spend more than this limit in one day, the bank’s anti fraud mechanisms can be triggered and you need to call the bank to regain access to your account. They will sms, email or call you to inform you that the anti fraud trigger has been activated.
The bank or credit/charge card company will contact you on the phone number which you nominated on your account file. They may ask you to verify that you used the card that day. They may ask you questions like in what countries you used the card, at what stores and hotels, if you have the card in your possession, what your pin (personal identity) or CTCV number is and what your billing address details are. Once the card and details are verified, they will re-activate the card.
If you lose your credit card or it is stolen, it will easily be replaced. Firstly and immediately, call the bank or credit card company to suspend you card. All the major credit card companies have offices in all major cities and most guarantee turnaround of a new card within 3 working days even in foreign countries. For international cards like American Express, Visa and Mastercard, the turnaround is usually achieved in less than 2 working days. Your hotel concierge or your host will be able to assist in finding the telephone number for the appropriate credit card company if you are abroad.
Signatures on credit cards are increasingly not used, rather the PIN number is the preferred option. This is especially if the credit card/charge card is a smart card. You can see this because it has a visible chip on it, usually gold or silver.
Charges on credit cards are high. Usually the exchange rate used by the bank for credit cards is higher than their published general rate or they use the published banking rate but charge up to 3% extra on every purchase as an international credit card fee. Also in some countries, when you make a charge on a credit card, you will be asked if you want that charged in the local currency or your home currency. You need to know what the exchange rates are of both your home bank and the local bank that the merchant is using to really know which will be cheaper. But in general, the exchange rate being charged in the international location that the merchant is using will be lower. This is because the bank in the country in which you are making the purchase knows that your local bank at home is charging up to 3% for international purchases so they can take the opportunity to earn that money rather than you home bank and to attract you to this option, they will charge it in at a slightly lower rate (say 2.8%). In all it will cost you less.
It is a good idea to carry two ATM cards from different banks with both cash and credit access on them under the Cirrus and/or Maestro system.
There are a few reasons why you may experience your card not working. Your card may not work if your local bank at home’s system goes down, they suspend access to your account for a time or the magnetic strip on your card may become not readable by the telling machine. If this occurs, you can easily use the other account and be sure not to ever get into a situation where you do not have access to cash.
While most businesses take credit cards these days there will always be times when you need some cash. Taxis in some countries and cities take credit cards but in some you still need to pay cash. Tipping is prevalent in some countries, a custom in some and mandatory in others and unless it is a restaurant where you can add it onto the credit card charge, you will need cash – eg barmen and porters.
Also, having a small amount of cash in an unfamiliar country will make you feel comfortable that you can get your way through any situation that may arise – even a cup of coffee.
