Have ATM Card That Will Travel? Not So Fast

I've spent a lot of time traveling internationally. Some for business and some for pleasure, but regardless of the reason, I always need more cash then I seem to have on hand.

Despite the realization last fall that our financial systems are uncomfortably interconnected around the world, getting cash while traveling internationally is not so easy. And for some banks, you have to pay big bucks in fees to access your own hard-earned money -- or even use a credit card outside the U.S. I've paid fees that should be criminal in some parts of the world, simply to exchange my hard currency for rupia, rubles or renminbi.

The ability to be able to get cash when traveling rivals in importance to staying in a safe hotel; cash equals safety. So many places around the world do not take credit cards and personal foreign checks are worthless. Cash is king and yet many people mistake an ATM card for a constant source of cash while traveling.

While in Hong Kong for a week promoting my book, I found I could not access my U.S. bank account without incurring high fees. I bit the bullet and withdrew what I needed, which, thankfully, was not much as Hong Kong is a city that runs on plastic. From Hong Kong, my family and I traveled to the Philippines and stayed with an old friend in Manila. I decided to straighten out my financials then since we planned to visit the kinds of places that do not take credit cards -- some of the outlying islands to take in sights far from any city or bank -- and needed cash.

The first day I went to a bank and withdrew money, no problem. I suspected all was fine, withdrew again two days later and was fine again. The third time, I was allowed only a $100 withdrawal -- significantly less than I needed. Running out of time, I had to get the cash or I would disappoint my twin daughters who were really looking forward to swimming with whale sharks in Donsol. Shocked and embarrassed, I had to borrow cash from my friend to pay for our tickets. If not for him, our vacation would have taken a sharp nose dive.

I later learned that since I had not been in the Philippines for 10 years, my bank tagged my transactions there as "suspicious" and mistakenly froze my account, limiting my daily withdrawal to $100. I was also charged high transaction fees, something that had been implemented unbeknownst to me in the past 12 months. Needless to say, I was quite unhappy both there and when I returned to the U.S. and read my statement. Adding insult to injury was my credit card statement; it showed two fees: one for using my card abroad and the other for exchanging currency. Shocked, I was convinced that some bank had to offer superior services for global travelers such as myself.

Fortunately, while doing some consulting for HSBC, I learned about HSBC's Premier service that caters to individuals who live and travel overseas. I loved what I learned enough to switch over my account and tell everyone I know who travels internationally to check it out. It offers me international services and support like no other bank -- replete with a Premier Relationship Manager who can provide 24/7 assistance - which would have helped when we wanted to swim with the whale sharks -- as well as a credit card that doesn't charge foreign transaction fees.

If you travel internationally, it pays to find out what fees you're being charged -- and perhaps do something about it.

Comments

[princequillo]

While I do think we could use a "global banking solution," the HSBC website does say that with the "premier account" you need a balance of 100,000 dollars, that leaves many people out of this as a solution. I'm glad for you that you have so much money to travel and spend. But many people do not. Please try to keep this in mind when making suggestions, and it would be helpful to let people know whats in the fine print. By the way I agree that this sounded like an advertisement.

[Halsey]

glad the girls got to swim with whales or dolphins....I was ready to cry..

[born 2b different]

LOL

[texassuper]

My wife and I travel a lot and, as a result, experience the exchange fees problem. So I read yesterday's article with interest. Went to the HSBC site and found that Premier level service requires a $100,000 account balance.

[gretchenart]

What is this a white paper, an ad for a bank or??

[john456]

Capital One does not impose the 3% fee on credit cards or when you use their ATM. Many small local banks also do not charge a 3% currency conversion fee for using their ATM. That being said, in Italy I have encountered local exchange costs using the Capital One card. The local merchant had it setup, probably through a local bank, to charge the higher exchange rate (~3%)and a fee for using the credit card. Fortunately, the credit receipt in this instance showed the higher exchange rate and the fee, so I cancelled the transaction and paid cash. This took place in Venice, but I was able to use the credit card with no extra charges (exchange rate for that day was used for the conversion to Euros) at several wineries in Tuscany.

[propitiousmoment]

Wow, I thought this was going to be an interesting travel story. Instead, it's an ad for HSBC. HuffPost, don't you monitor what gets posted here?

[StacieBerdan]

My story is true; it's not an ad, and I am upfront about my connection to HSBC in the piece. Haven't you ever recommended a product to friends -- something you really believe in? I have traveled extensively for the past 20 years and have had many difficult situations with ATMs, exchange fees and credit cards -- including many merchants who won't take AmEx because of the fees or passing the fees on to the consumer. I truly believe in this product and feel it's about time we have a global banking solution.