Study Abroad
How should my student handle money while abroad?
ATM and Debit Card
Students can withdraw funds from their US primary checking account in the local currency with an ATM cash card or Debit Card at ATM machines overseas. This is the easiest and least expensive way to obtain cash while overseas but please check with your bank for applicable charges. Your bank can also confirm that your student’s card is activated for international use and give you a list of partner bank ATM locations in their host country. The card must be linked to a checking account, not a savings account. ATM machines may not be available in extremely rural locations.
Students should notify their banks that they will be out of the country so that their accounts do not get frozen for suspicious activity. Ask your bank ahead of time if they charge a foreign transaction fee. It is recommended that you change your PIN to a four digit code before departure.
Banks which possess membership in the Global ATM Alliance have an agreement in which your student will pay no surcharges or access fees when they withdraw cash at certain member bank ATMs around the world.
Credit Cards
Credit cards are now widely used in most countries and are convenient for making purchases. However, using a credit card to obtain a cash advance (in local currency) can involve many hidden charges including finance charges. These cash advances are often considered a loan and you can get an advance only up to your line of credit. Credit Card Cash advances are recommended for emergencies only.
MasterCard & Visa are the most commonly accepted cards.
NOTE: Your student's credit card bill will reflect the exchange rate on the day the credit transaction was processed, which may be more or less than what you thought you were paying at the time of your purchase. Always ask your credit card company in advance what the rate will be. Ask your credit card companies ahead of time if they also charge a foreign transaction fee. Students should notify their credit card companies that they will be out of the country so that their accounts do not get frozen for suspicious activity.
Traveler's Checks
Traveler’s checks are widely accepted and replaceable if lost but can be inconvenient to convert to cash. Traveler’s checks are sold by several agencies and major banks throughout the United States, usually at the rate of one percent over the value of the checks you are buying. If you are an AAA member or American Express cardholder, you may purchase traveler’s checks at no additional fee.
Your student may cash traveler’s checks overseas at banks, stores, money exchange kiosks etc. for a fee, so shop around for the best deal. If you purchase American Express Traveler’s Checks, your student may cash them at their offices abroad. Before your student leaves, check for the locations abroad. Be sure to keep the receipts for traveler’s checks separate from the checks, in case replacement checks are needed.
Bank Transfers/Drafts
Bank transfers/drafts are used for emergencies only. If you think you might need to use bank transfers, or want to take your initial currency in the form of a bank draft, visit your bank in the United States before your student leaves and ask them for a list of their correspondent banks. Let them know who is authorized to initiate cable transfers to you. Once your student is in their host country, they can contact (telegram or phone) their bank at home and receive the money usually within 48 hours.
Be advised that you will probably have to pay the cabling charges both ways, in addition to a commission charged by your U.S. bank. Money can also be cabled from home through American Express; this type of transfer will take two to five days and the charge varies according to how much money is sent. Alternatively, students can notify their home bank and request that a bank draft in their name be mailed to them (registered), at a specific bank and location. Bank drafts may take up to three weeks to clear.
In most cases it is not advisable or necessary to open a bank account in the host country unless your student will be there for more than one semester.
Local Currency
It is a good idea for your student to take enough local currency to pay for initial expenses before they can get to an ATM – although there are ATMs at most international airports. It is also possible to exchange money at currency exchange bureaus at the airport. Some countries restrict how much currency can be brought in or out. Check with the appropriate embassy or consulate for any such requirements. Travel guidebooks always include information on how to get money: consult a recent edition for latest updates.
Study Abroad Office
Administration Building, 2nd Floor
Monday - Friday, 8 a.m. - 5 p.m.
Phone: 410-704-2451
Fax: 410-704-4703
Email: studyabroad@towson.edu
|
