Be Smart With Money When Planning a Summer Vacation

Summary

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WSJ Your Money Briefing: Be Smart With Money When Planning a Summer Vacation

Date: May 29, 2018
Host: J.R. Whalen (The Wall Street Journal)
Guest: Carrie Sumlin (Digital Consumer Executive, Ally Financial)

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Episode Overview

This episode focuses on managing your money smartly while planning and embarking on a summer vacation. J.R. Whalen speaks with Carrie Sumlin from Ally Financial to discuss strategies for protecting your finances, maximizing credit and debit card rewards, and safeguarding yourself against fraud both domestically and abroad. From pre-trip planning to dealing with emergencies on the road, the conversation offers practical tips for making the most of your summer travel—without incurring unnecessary expenses or risks.

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Key Discussion Points & Insights

1. Using Credit and Debit Cards Wisely While Traveling

• Debit Cards Are Safe but Require Extra Caution

  • Travelers often prefer debit cards to avoid racking up credit card debt.
  • "A debit card is perfectly safe and convenient way to pay for your vacation while you're traveling. But... this card is tied directly to your account and so any transactions come directly against your bank account." — Carrie Sumlin (03:12)
  • Never let your card out of your sight, particularly in restaurants; pay cash if the terminal doesn't come to your table.
  • Always monitor card activity during and after travel to spot fraud early.

• Ordering Foreign Currency in Advance

  • Avoid last-minute scrambling and unfavorable exchange by securing currency from your bank before departure.
  • If you need more cash overseas, be cautious with ATMs: check for signs of tampering or skimming devices.
  • "When you go to an ATM machine, you need to have a level of suspicion... That type of thing could indicate that somebody's attached a skimming device." — Carrie Sumlin (04:16)

2. Fraud Prevention Tips

• Card Management Features
  • Many banks and card providers allow you to control your card through mobile apps: temporarily disable (‘turn off’) cards, set geographical limits, and restrict certain merchant types.
  • "If you've misplaced your card...you can easily access your app and just turn that card off." — Carrie Sumlin (05:38)
  • Ally Bank extends these controls with geolocation settings and merchant/type restrictions.
  • "If you're traveling, you can set the geolocation only to where you are." — Carrie Sumlin (05:57)
  • Prevents fraudulent transactions if your card is stolen and used outside the pre-set region.

3. Smart Spending & Maximizing Rewards

• Favorable Destinations for Exchange Rates and Value

  • Certain international countries offer strong values to travelers due to favorable exchange rates: Mexico, South Africa, Norway, Iceland, Japan, and Indonesia.
  • Consider using reward points for airfare to save cash for other expenses.

• Plan Ahead to Save on Lodging and Attractions

  • Booking in advance not only helps secure better prices but also locks in access to attractions that might sell out.
  • Use affiliations (alumni, roadside assistance, etc.) to access discounts when buying tickets ahead of time.
  • "The more you plan, the better you're going to be. Not only from finding lodging deals...but also being able to even get tickets to some of the venues that you want to see." — Carrie Sumlin (07:28)

4. Emergency Preparation & Response

• What to Do If You Suspect Fraud or Lose Your Card
  • Immediately turn off your card using your provider's app or hotline.
  • Keep a backup of your bank’s international contact number by, for example, photographing the back of your card.
  • "I would recommend first access your credit card controls or your debit card controls app and turn your card off." — Carrie Sumlin (08:13)
  • Always carry more than one form of payment; store backups separately, e.g., hotel safe or unused luggage compartment.
  • "It's really important to bring a backup, whether it's a backup card or backup cash. And of course store that somewhere away from your primary funding source." — Carrie Sumlin (08:33)

5. Safety Considerations for Travelers

• Using Internet Cafes and Public Wi-Fi

  • Be cautious of entering sensitive information on free or public networks; assume others could see your activity.
  • "Be very careful about what you're accessing...with free wi-fi and Internet cafes." — Carrie Sumlin (08:59)

• Pickpocketing Awareness

  • Especially in crowded or tourist-heavy areas, stay alert and maintain personal space since groups may use distractions to steal wallets or cards.

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Notable Quotes & Memorable Moments

• On Debit Card Vigilance:
  "Never let it out of your possession, even if you're at a restaurant and paying for your meals. If they don't bring the card terminal to your table, I would recommend that you pay cash." — Carrie Sumlin (03:24)

• On ATM Safety:
  "Have a level of suspicion...look for things that don't look normal, new appendages...any damage to the machine." — Carrie Sumlin (04:16)

• On Card Controls:
  "You can set the geolocation only to where you are...it won't work for them." — Carrie Sumlin (06:14) "You can also control what types of merchants they can make purchases at." — Carrie Sumlin (06:19)

• On Backup Payment Methods:
  "Don't just plan to rely on one form of payment when you travel...store that somewhere away from your primary funding source." — Carrie Sumlin (08:33)

• On Digital Security:
  "Anytime you use Internet cafe or free WI fi, you are viewing things with the assumption that somebody else is also viewing them." — Carrie Sumlin (08:59)

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Important Timestamps

• 03:08: Choosing debit vs. credit cards while traveling; vital security tips
• 04:16: Securing foreign currency, ATM safety and skimmers
• 05:38: Modern card management features via mobile apps
• 06:48: Destinations with favorable exchange rates and maximizing travel rewards
• 07:28: Importance of booking ahead and using affiliations for discounts
• 08:13: Steps to take immediately if card is lost or stolen
• 08:59: Digital safety on public Wi-Fi and in internet cafes
• 09:15: Final safety reminders (pickpockets, carrying backup payment methods)

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Conclusion

This episode arms summer travelers with up-to-date advice on how to protect their finances, make the most of their rewards, and avoid common pitfalls and scams at home and abroad. The actionable tips from Ally Financial's Carrie Sumlin empower listeners to plan ahead, use modern card protections, and stay alert—ensuring their vacation is memorable for the right reasons.

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Transcript

[Small Business Owner]

Access to affordable credit helps me pay my employees, but I don't really need it.

[Retail Industry Representative]

Inflation is killing me, but who cares? Big retailers are making record profits. That's why we support the Durbin Marshall credit card bill.

[Small Business Owner]

See banks and credit unions help small businesses make payroll. This bill would cut the vital resources

[Retail Industry Representative]

they need while increasing megastore profits. They deserve it, don't they?

[Small Business Owner]

Tell Congress.

[Carrie Sumlin]

Stop the Durbin Marshall money grab for corporate megastores paid for by the Electronic Payments Coalition. Your Money Briefing Money in Market stories from the Wall street journal.

[J.R. Whalen]

I'm J.R. whalen in New York. There's more to gearing up for a summer vacation than packing the sunscreen and holding the mail. You've got to be smart about money and your credit cards to avoid big trouble. We'll have more in a moment. First, these money headlines. Filings with the securities and Exchange Commission show that most companies that pay six figures so the majority of their workers aren't big banks or money managers, but biotech firms that rely on medical researchers and energy and technology companies with a large number of engineers and technical staff. More than 100 companies in the S&P 500 routinely awarded employees $100,000 or more in 2017. Nearly half of those were in the energy industry, including oil and gas drillers, refiners, and electric utilities. Together, the energy companies employ more than 600,000 people on average. The best paying jobs were with companies that employ around 17,000 people. That compares with an average headcount of roughly 53,000 for all S&P 500 firms. Due to escalating tuition and easy credit, the US has 101 people who owe at least $1 million in federal student loans. That's according to the Education Department. Five years ago, 14 people owed that much more could join that group. While the typical student borrower owes $17,000, the number of those who owe at least $100,000 has risen to around 2.5 million. That's nearly 6% of the borrowing pool. And for graduate school students especially, there's little incentive for universities to help put the brakes on big borrowing. The government essentially allows grad students to borrow any amount to cover tuition and living costs, with few guardrails on how the final sum will be repaid. More than a third of borrowers from one of the government's main graduate school lending programs have enrolled in some form of federal loan forgiven. This is your Money briefing from the Wall Street Journal. Welcome back, everybody. Rising gas prices and a spike in vacation related Google searches this time of year means it's time to plan your summer vacation, but there's more to it than loading the kids in the car and having the mail held. Protecting yourself financially should be top of mind. Carrie Summlin is digital consumer executive at Ally Financial, and she's here with some tips to prevent you from from being burned. So, Kerry, we're not talking about getting burned by the sun. Let's talk about planning your trip. You can take inventory of what rewards programs you have with your credit cards, but you can also bring along debit cards on your trip and you feel it's okay to use those, but it's important to use them wisely.

[Carrie Sumlin]

Absolutely. People should pay for their trip in whatever way they're comfortable. And a lot of people don't like to use credit cards at all. A debit card is perfectly safe and convenient way to pay for your vacation while you're traveling. But one thing that's really important to keep in mind is that this card card is tied directly to your account and so any transactions come directly against your bank account. So as you plan for using your debit card, there's a few things you need to keep in mind. First, always recommend that you never take your eye off your card. Never let it out of your possession, even if you're at a restaurant and paying for your meals. If they don't bring the card terminal to your table, I would recommend that you pay cash. The other thing that you need to do is monitor the activity on your card, not just when you're traveling but when you get back. And this is a great way to make sure that no fraud occurs on your account. And if it does that you report it right away and your bank will cover that for you.

[J.R. Whalen]

You know, most travelers, especially if they're going overseas, they're not going to have a wad of cash in their pocket because of the ease of using credit cards. But you say that if they want some emergency cash on hand, get that currency before jetting off on your vacation.

[Carrie Sumlin]

Ordering your currency before you leave from your local bank is absolutely the best thing to do. However, if you are overseas and somehow you haven't planned or calculated correctly how much cash you're going to be using, a debit card card is a great way to access your cash. What I would advise, though, is when you go to an ATM machine, you need to have a level of suspicion with that machine. You need to look for things that don't look normal, new appendages, if you will, or any damage to the machine. That type of thing could indicate that somebody's attached a skimming device to the machine and they're looking to capture your card information as you put it in to get your cash.

[J.R. Whalen]

You mentioned in the last question about the staff at a restaurant or a merchant bringing the credit card machine to your table. That's unusual here in the US But I was just in Mexico and that seemed to happen everywhere I went. Is that something new?

[Carrie Sumlin]

It's something that happens to your point internationally very frequently and is considered the norm. It doesn't happen as much in the U.S. i think in the U.S. your options for monitoring your card are a little bit better than they are internationally. And you know, some of the normal things that you would be concerned about with fraud. Loss on the debit card in the United States is part of how you do your day to day spend. So some of these precautions may apply more to overseas travel than they do to domestic travel.

[J.R. Whalen]

You say that some banks offer forms of credit card or debit card management. What is that?

[Carrie Sumlin]

So a lot of card providers are now giving you the ability within your mobile app or online banking session to turn the card on and off. So if you've misplaced your card or you think your card's been stolen, you can easily access your app and just turn that card off. At Ally bank, we've taken that feature a little bit further. We give people the ability not only to turn their card off and on, we give them the ability to set what geolocation they want their card used in. So if you're traveling, you can set the geolocation only to where you are.

[J.R. Whalen]

Oh, is that right?

[Carrie Sumlin]

Absolutely.

[J.R. Whalen]

Oh, so if somebody runs off with it and you're in France and they're in Spain, ding, ding, ding. Something goes off.

[Carrie Sumlin]

Exactly. They can't and they can't use it. So not only do you get an alert that your card's been attempted outside of your set geolocation, it won't work for them. You can also control what types of merchants they can make purchases at or that you can make purchases at. So if somebody takes your card to some merchant type that you would never purchase from, it also won't access or won't allow it to access your money.

[J.R. Whalen]

Well, hopefully that won't happen to anybody. But there are some ways to really find some advantages to the system, and that is the favorable exchange rate that can really give travelers a good reason to pick and choose where they go this summer.

[Carrie Sumlin]

There are some great international destinations, really across the globe this summer that allow you to maximize your earning and your savings for your spend. Some of those places this year include Mexico, South Africa, Norway, Iceland, Japan and Indonesia. So really a pick of a lot of different types of vacations that you could have. You might consider though, using your rewards points to buy airfare instead of having the larger cash outlay to get the plane ticket to go to those destinations.

[J.R. Whalen]

And we could tell that people are planning well ahead for their trips because in May the rate of Google searches for summer vacations spikes. So it's a good idea not to wait until the week before you go.

[Carrie Sumlin]

Absolutely. The more you plan, the better you're going to be. Not only from finding lodging deals and not overpaying for lodging, but also being able to even get tickets to some of the venues that you want to see while you're on vacation. Nothing's worse than going to a location to see a big venue and then finding out the tickets are sold out. So definitely recommend using your debit credit card in advance to purchase those tickets and really look to save money as you do that by applying discounts associated with your alumni association affiliation or roadside affiliation. Anything that you can do to save some money on that.

[J.R. Whalen]

Alright, so if you're on vacation in the us, you're on vacation overseas, whether it's Paris or Egypt or Moscow or whatever, you notice something's wrong. What's the first thing to do?

[Carrie Sumlin]

I would recommend first access your credit card controls or your debit card controls app and turn your card off. Then use the international number that hopefully you've taken a picture of and written down in your phone contact list and contact that financial institution right away to let them know that's happening.

[J.R. Whalen]

So part of the planning, take a photo of the back of your credit card.

[Carrie Sumlin]

Absolutely. The other thing I would recommend doing is don't just plan to rely on one form of payment when you travel. It's really important to bring a backup, whether it's a backup card or backup cash. And of course store that somewhere away from your primary funding source. So maybe in the hotel safe or in your luggage, depending on where you are.

[J.R. Whalen]

Another thing you point out is whether you're traveling overseas or domestically is just to watch out for Internet cafes and of course watch out for pickpockets trying to take your wallet.

[Carrie Sumlin]

Yeah, absolutely. With all of the hacking technology that exists today, it's really important that anytime you use Internet cafe or free WI fi, you are viewing things with the assumption that somebody else is also viewing them. So be very careful about what you're accessing and the type of information that you're looking at with free wi fi and Internet cafes. The other thing that I would advise, both domestically and internationally, is really be on guard for pickpockets. Really maintain your personal space. Understand that a lot of these folks travel in groups of people and they may do something to distract you. One person may do that while the other person tries to access your wallet or your money.

[J.R. Whalen]

All right. A lot to be aware of. That's Carrie Sumlin from Ally Financial joining us here in our studio. Carrie, thanks for being with us.

[Carrie Sumlin]

You're welcome.

[J.R. Whalen]

And that's your money briefing. I'm JR Whalen in New York for the Wall Street Journal.

[Small Business Owner]

Access to affordable credit helps me pay my employees, but I don't really need it.

[Retail Industry Representative]

Infliction is killing me, but who cares? Big retailers are making record profits. That's why we support the Durbin Marshall credit card bill.

[Small Business Owner]

See, banks and credit unions help small businesses make payroll. This bill would cut the vital resources

[Retail Industry Representative]

they need while increasing megastore profits. They deserve it, don't they?

[Carrie Sumlin]

Tell Congress, stop the Durbin Marshall money grab for corporate megastores paid for by the Electronic Payments Coalition.