Out of town and out of cash

"It's not hard to meet expenses, they're everywhere." – T-shirt quote

Sorry for the spate of volcano stories but this is too good an event to pass up for a preparedness blog. It is rare events like this that test everyone and highlight weaknesses and problems.

A few asides before jumping into the main topic.

1. There is grumbling in Europe about lack of governmental preparedness dealing with stranded passengers and managing transportation alternatives. The train system is great (compared to the US) but overwhelmed now. Each country maintains its own airspace so some nations are flying, others grounded. Five days after the volcano, a Euro-level meeting of Transportation Officials was held to discuss common standards for safe flying.

2. Lot’s of grumbling over the airlines. Most have a terrible track record of handling massive flight cancellations. To improve profitability, airlines now fly fewer planes but each at full or near-full capacity. This leaves them with little space to accommodate stranded passengers.
Europeans stranded in Japan were told by Taiwan's EVA Airways that the earliest flight with openings is May 12 - but only if they are willing to pay an extra 150 euros ($200). Otherwise, they have to wait until June.

3. This problem could continue indefinitely. Eyjafjallajökull may continue erupting for a decade and it has a big brother 15 miles away, under deeper ice, that will cause an even bigger ash cloud if it wakes up.

4. A common element of many disasters is price gouging. A French tourist in Hong Kong reports, "Yesterday, we had a hotel room at 250 euros. At midday, it was 460 euros, and in the evening, the price was 800 euros for a room - we can't pay that." The hotel's general manager replied simply, "We dynamically price much like the airlines do, according to how many rooms we have to sell in the hotel." A British family in Sydney, Australia, had the same problem. Their first night stranded cost 150 Australian dollar ($138); the next day the hotel raised the price of the same room to AU$350 - simply because it could.

Which leads to the main point – having access to emergency money on a vacation or business trip. Don’t be like the family who said, "We're at the end of the holiday so we've spent all our money ... Because that's what you do on holiday."

So what are your options when traveling out of the country?

1. Credit Cards – you will pay a modest currency conversion fee but credit cards are accepted around the world.

2. ATMs – ditto on conversion fee and there may be an “out-of-country” access fee. It helps to have your money in a bank that has a global ATM network. The following banks support the “Global ATM Alliance” of mutually compatible ATM machines: Bank of America, Barclays (England), BNP Paribas (France), Deutsche Bank (Germany), Santander Serfin (Mexico), Scotiabank (Canadian), Wespac (Australia & Pacific), ABSA (South Africa), UkrSibbank (Ukraine), China Construction Bank (China). This group has branches in most countries.

Other international ATM networks include:
PLUS (allows Visa card cash withdrawals in over 200 countries.)
Cirrus (allows MasterCard cash withdrawals) Call (800) 424-7787 for locations in 210 countries.

3. Before using your Credit Card or ATM card overseas, call your bank first to warn them that you are traveling. Otherwise they may freeze your card for suspicious activity. Also write down the phone number for calling your Credit Card company in case your card is stolen overseas. Keep this number in a safe place.

4. Travelers checks – I have not used these in years. Now I find that credit cards and ATMs are easier than obtaining and then cashing travelers checks. Often the fees are lower too. Still it might not hurt to have a few $100 available just-in-case the global ATM system or credit card system breaks down due to attack or severed undersea phone/Internet cable. Also American Express Traveler Checks can be replaced if stolen – you’ll need to store the check numbers in a different place (or with a friend) so you can make a claim.

5. Commonwealth Bank of Australia offers Travel Money Cards that work like debit cards but in preloaded foreign currency. I assume other banks have something similar.

6. It's best to use a combination of money sources: a small amount of cash, a debit card, two credit cards (in case one is declined or stolen!) and some travelers checks. Some travelers swear by the ‘two wallet' technique. Keep all your documents and credit cards safely in one wallet, and then use an everyday old wallet for cash and a few less important cards. If you get mugged, just hand over the second wallet to minimize your loss.

7. Before going to a foreign country, I like to convert some money (say $100) in advance. This way if I need cash immediately (like for an airport Taxi) I’m not dependent solely on the moneychangers at the airport and their fees. Ask your bank if they can get you foreign currency (and at what rate.)

Bottom Line

In a few places above I mention storing important contact information in case you are robbed or your luggage lost/stolen. You many lose your purse, wallet or suitcase. So what’s left – a tattoo? One option is the Internet – if you can get free (or cheap) access to it. You could Google for your credit card company number, or American Embassy location, etc. Before the trip you could email yourself the list of Travel Check numbers, your passport number, and other vital numbers and leave this in your in-box. Be careful opening your email overseas. An Internet café or wifi could have someone snooping on Internet traffic or have a keystroke recorder on the PC to copy your account name and password. As a backup I’d email this same info to a trusted friend or relative that you could call.

Resources

Volcano flight chaos leaves many passengers broke

ATMs Abroad

Accessing Your Money Overseas

International Money Transfers