Advantages of Using a Debit Card for Travel

Traveling with a debit card can offer several benefits, making it a convenient option for many. Here are some key advantages:

Fraud Protection

If your debit card is lost or stolen, your bank may allow you to lock the card immediately through its mobile app or website. This can provide some protection against fraud as you work with your bank to cancel and replace the lost or stolen card. Additionally, if you report your card lost or stolen before any unauthorized transactions occur, your liability for that activity is $0.

Helps You Avoid Carrying Cash

Using a debit card for in-person transactions can help you avoid carrying cash, reducing the risk of losing it or having it stolen. Lost cash is much harder to recover than fraudulent use of your debit card, which may simply require a call to your bank to put a stop to.

Ability to Track Spending

Using a debit card while traveling gives you an edge when it comes to tracking your spending. You can monitor debit card transactions through your bank account, helping you stay on top of your finances.

ATM Access

If you run out of cash while traveling, having a debit card allows you to replenish your cash supply by making an ATM withdrawal. Just be sure to monitor those ATM fees.

Drawbacks of Using a Debit Card for Travel

While there are benefits to using a debit card for travel, there are also some significant drawbacks to consider:

Foreign Transaction Fees

If you’re traveling outside the U.S., your bank might charge a foreign transaction fee when you use a debit card at a merchant or ATM. These fees generally range from 1% to 3% of the transaction amount. Additionally, the ATM operator might charge its own fee for using one of its machines.

Limited Fraud Protection

The fraud protection for a debit card that’s lost or stolen while traveling may be limited. Under federal law, the maximum loss is typically as follows:

• $0 if you report your debit card lost or stolen before any unauthorized transactions are made.
• $50 if you report a debit card lost or stolen within two business days of learning about the loss or theft.
• $500 for unauthorized transactions when you report a lost or stolen debit card more than two business days after learning of the loss or theft, but within 60 days after unauthorized transactions show up on your bank statement.
• Unlimited if you wait more than 60 days to report the fraudulent transactions.

By contrast, a credit card may offer more robust fraud protection. For example, a credit card issuer can freeze transactions they deem questionable. Money for a questionable debit card transaction might still be subtracted from your account, and it might be tough to get your money back.

Lack of Rewards

In many cases, debit cards don’t offer rewards—such as airline miles or hotel points—for travel-related transactions. If you’re hoping to earn rewards when you travel, getting a travel rewards credit card that doesn’t charge foreign transaction fees may be a better option than using a debit card.

Best Practices for Debit Card Use While Traveling

To make the most of using a debit card while you’re traveling, follow these tips:

Notify the Debit Card Issuer

Before traveling abroad, notify your debit card issuer. Otherwise, if the card issuer detects potentially fraudulent activity, it might temporarily block access to your card until it sorts out the issue.

Be on the Lookout for Thieves

Pickpockets typically target people they peg as visitors. Make your debit card as pickpocket-proof as you can by keeping it in a pocket inside a jacket or stashing it in a money belt. Avoid using a backpack or purse that enables easy access to your wallet.

Keep an Eye on Your Account

Monitor your account for potentially fraudulent activity and fraud alerts from your financial institution. Consider signing up for free credit monitoring services.

Set Transaction Alerts

Create alerts to notify you when any debit card transactions are made. This can help you stay on top of your spending and detect any unauthorized transactions quickly.

Bring a Backup Payment Method

In case something happens to your debit card, pack at least one alternate payment method, such as a credit card. You might also consider leaving the debit card at home if it’s not essential for your travel plans.

The Bottom Line

A debit card can be a useful tool when you’re traveling, but it might not offer the same protections, rewards, and perks that a credit card does, especially if you’re traveling internationally. If you do travel with a debit card, alert your bank before heading overseas and consider packing a backup payment method in case you lose the card.