6 Tips for Keeping Your Money Safe While Traveling Abroad

Updated on April 12, 2022 10:11 am

Keeping your money safe at any given time can be challenging and when you're traveling, it can be even more difficult. The following are some handy tips that you can use to protect your valuables while traveling abroad:

1. Use Credit, Limit Cash

Using a credit card saves you from unauthorized charges should someone get ahold of it. Cash, on the other hand, can cause you to overspend and is far more likely to be lost or stolen. Want to feel safe? Tuck a credit or debit card in your wallet - look for cards that do not have a foreign transaction fee - and prepare to spend only as much as your next statement can cover. Supplement it with some ready cash.

2. Avoid Secluded ATMs

The more visible you are, the better. Try to plan your trips to ATMs for the daytime and if you do need to go at night, you'll want to find someone you trust to accompany you. It is recommended that you choose ATMs that are in your hotel or are near busy areas, and if you have a vehicle, use drive-up ATMs. The more public these Automated Teller Machines are, the more protected you and your money will be.

3. Use A Money Belt

These money belts and their derivatives, such as a bra stash, crocheted money pouches (that can be worn as necklaces), or travel underwear with secret pockets, remain invaluable for storing your money. You can keep your passport or driver's license in there too.

4. Use A Dummy Wallet

Want to deceive thieves? Stuff a cheap wallet with a few bills and some spare cards that could have appeared in your junk mail. This will lure pickpockets from the real target and could save your life in the event of a hold-up. Don't check for where the real wallet is until you're at a safe spot.

5. Carry An Anti-Theft Bag

Some bags that are designed for travel come with features such as cut-proof, steel-cable-reinforced shoulder straps; slash-proof fabric; and locking zippers. these are ideal for stashing money since it slows down thieves, deterring them from grabbing your valuables. Never place your bag out of site.

6. Use Small Bills

They're less apt to cause roving eyes, easier to exchange and certainly easier to use in these typically cash-dependent countries, most of which are unlikely to have the change for massive bills. Convert into $1, $5 or $10 bills to be safe.

US Remittance Tax Plan Update 2025 - Financial Advisory

Sending money overseas is a lifeline for millions across the US. As digital transfers grow and money crosses borders faster than ever, 2025 brings a new wave of attention from regulators. The spotlight? Remittance tax planning.From updated reporting rules to shifting tax thresholds, financial advisors are keeping a close eye on what these changes mean for everyday senders. Know that transferring money is still secure and straightforward if you know the rules.In this article, we’ll walk you through the latest remittance news, what’s changing in the tax landscape, and simple steps you can take to stay compliant and confident. Today’s Remittance StoryWhen we talk about remittances, we mean the money sent by individuals in the US to support family, friends, or business contacts abroad—often through banks, online platforms, or money transfer services. For millions of immigrants and expats, these transfers go far beyond simple transactions. They represent vital support for education, healthcare, housing, and everyday needs back home.The US stands as one of the largest sources of outbound remittances globally. Recent updates in remittance news show billions of dollars flowing each year to countries like India, Mexico, the Philippines, and China. These funds significantly contribute to household incomes and help sustain local economies. Given their importance, changes in US remittance policy can have wide-reaching effects.US Remittance Taxation: How It Currently WorksNow that we understand the importance of remittances, let’s explore how the US tax system treats these money transfers. Understanding the rules can ease concerns and help ensure your transactions stay compliant.Generally, the IRS considers most personal remittances, such as sending money to family members abroad, as gifts rather than taxable income. As a result, these transactions typically do not create a tax liability for the recipient.However, larger transfers do come with reporting requirements:If you gave more than $17,000 to an individual in 2024, you are required to file Form 709 (United States Gift Tax Return). This doesn’t automatically mean you’ll owe gift tax—it simply informs the IRS that your gift exceeds the annual exclusion.In some cases, you may need to file Form 3520 if you receive large foreign gifts or inheritances, especially if they exceed $100,000 from a nonresident individual.Also, any transfer over $10,000, even if not taxable, may be subject to Bank Secrecy Act (BSA) reporting, intended to prevent money laundering and financial crimes. This is a compliance requirement, not a tax.The good news? Most personal remittances fall below these thresholds and remain non-taxable and uncomplicated.2025 Tax Plan Updates: What’s Changing?In 2025, a fresh wave of regulatory changes is beginning to reshape how remittances are taxed and reported in the US. Staying updated is essential for keeping your transfers smooth and stress-free.3.5% Excise Tax on RemittancesA major proposal introduces a 3.5% excise tax on remittances sent by non-US citizens or nationals. This tax applies to every transfer, no matter how small. Money transfer providers will collect this tax directly, making the process easier for senders.Enhanced Reporting and TransparencyTo support greater financial clarity, the IRS is introducing upgraded digital reporting systems. These tools aim to quickly flag suspicious activity, helping authorities monitor remittances more effectively without disrupting regular users.Tighter Controls on Crypto and Digital WalletsWith digital assets on the rise, new rules will require brokers to report crypto sales and exchanges using Form 1099-DAstarting January 1, 2025. Transfers via digital wallets will also come under closer watch to ensure proper tax reporting.State-Level Rules and AI MonitoringAdding another layer, several states may implement their own remittance taxes or regulations. At the same time, the IRS plans to use artificial intelligence to detect unusual or potentially fraudulent transactions for review.By understanding these evolving regulations, you can plan your remittance strategy accordingly, keeping your money flowing efficiently and in full compliance throughout the year.Impact of New Tax Plans on Different GroupsWith the 2025 tax updates coming into play, it’s important for both senders and recipients to understand how these changes may affect them. Let’s explore what different groups can expect and how to stay ahead.For Indian, Filipino, Nigerian, and Other Diaspora SendersUpcoming changes may bring enhanced documentation and clearer thresholds for tax-free transfers. While this means senders may need to stay more informed and mindful of their transfer limits, it also opens the door to more transparency and smoother compliance. By maintaining organized records and consulting with financial experts, senders can continue transferring funds with confidence and peace of mind.For Recipients in Home CountriesWhile recipients typically don’t owe US taxes on incoming remittances, increased oversight could lead to temporary holds or delays as banks in home countries verify transaction legitimacy. This can cause unnecessary stress or timing issues. On top of that, currency conversion fees and local tax policies might shift in response to these US changes, creating added layers of complexity. Staying informed about local financial regulations can go a long way in avoiding unpleasant surprises.These new policies are a shared concern, so both senders and recipients need to remain alert and proactive. By staying in tune with the latest remittance developments, you can help ensure smoother, worry-free transfers for everyone involved.What Financial Advisors RecommendAs remittance policies evolve, staying ahead doesn’t have to be stressful. A few practical habits can help you manage your transfers confidently and avoid complications down the road.Keep Track of TransactionsMaintaining a record of all your transfers is your first line of defence against confusion during tax season. Clear documentation can be a lifesaver if questions ever arise. Many senders now use digital platforms to stay on top of things. Tools like CompareRemit allow you to track transfer amounts and fees with ease, helping you stay informed without extra effort.Know the Legal LimitsIt’s equally important to understand when your transfers might cross regulatory thresholds. At present, transactions above $10,000 need to be reported, but as 2025 tax updates roll in, these numbers could change. Financial advisors recommend being aware of these shifts and suggest speaking with an expert for personalized guidance. The right advice can help you plan better and stretch your remittance value while staying within the law.By staying organized and proactive, you can send money abroad without second-guessing. A little planning now can save you time, stress, and money in the long run, making every transfer count.Staying Ahead With Remittance NewsAs remittance rules evolve in 2025, one thing remains constant—being informed is your best financial tool. Whether you're sending money to support family, invest back home, or meet personal obligations, understanding the latest tax changes and reporting requirements helps you plan with confidence.Platforms like CompareRemit are designed to support this approach. From real-time exchange rates to timely news and practical tools, they help you navigate cross-border transfers smartly, so you can focus more on your goals and less on the paperwork.Staying ahead isn’t just about knowing the rules, it’s about using that knowledge to make better decisions for you and your loved ones.Frequently Asked Questions (FAQs)Q1. What are the penalties for failing to report large remittances?If you don’t report remittances that exceed the IRS threshold, you could face civil penalties or audits. For instance, failing to file Form 709 (Gift Tax Return) when required may result in fines, even if no tax is owed. In more serious cases, this could trigger further investigation by the IRS.Q2. Can remittances impact my US immigration or visa status?Yes. Sending unusually large or frequent remittances without a clear source of income might raise questions during immigration reviews or visa renewals. It's important to ensure all transfers are well-documented and consistent with your declared income.Q3. Do remittances affect eligibility for government benefits in the US?Possibly. If you're receiving need-based government benefits (like Medicaid or SNAP), large outgoing remittances could lead to a review of your financial activity. Authorities may question how you can afford to send money abroad while receiving assistance.Q4. Are there any remittance exemptions for students or dependents?No specific exemptions exist for students or dependents under IRS rules. However, if you're sending money for education or living expenses, the same gift and reporting thresholds still apply. It’s advisable to keep receipts and explain the purpose of funds if requested.Q5. Can I deduct remittances from my US taxes?Generally, no. Personal remittances sent to family or friends do not qualify as tax-deductible expenses under IRS guidelines. However, if the money is sent as part of charitable giving through a registered 501(c)(3) organization, it may be deductible with proper documentation.

What is an EFT (Electronic Funds Transfer)? Everything You Need to Know

Have you ever paid any bill online, sent money through your mobile banking app, or used your debit/credit card at checkout? If yes, you have used EFT—whether you know it or not.If you are an immigrant, expat, or a small business owner, understanding what an EFT is and how it works will help you save a lot of time and money, particularly when you are sending money overseas.In this guide, you will learn the meaning of EFT, the working of various types of EFT, its benefits and drawbacks, and how to choose the right service for your requirements.What Is an EFT?EFT, short for Electronic Funds Transfer, is a method of digitally transferring money between accounts—sometimes within the same bank, sometimes between two different financial institutions. It is a secure and fast method, and doesn’t require cash or paper checks.How Does an EFT Work?EFT is just a method of moving money digitally. Whether you are sending money from one account to another, paying for online shopping, or giving out employees’ salaries, your bank uses the electronic system to process the transaction.The key players involved in an electronic funds transfer are as follows:The sender: The sender who initiates the transactionThe receiver: The person or the business that is receiving the moneyBanks or payment processors: They move the money between accounts.EFT networks: These comprise systems like SWIFT, ACH, or card networks such as MasterCard and Visa.There is no involvement of physical cash here. The entire process of transferring funds happens through computers and secure protocols.Types of EFT PaymentsThere are various types of electronic funds transfer methods. Let’s break down the top five types, so that you can make an informed decision on which is the best for your needs.1: ACH transfersACH stands for Automated Clearing House. Mostly used in the United States, it is the perfect method for business invoicing, payroll, and recurring bill payments. It takes 1-2 days for the transfer, and the fee is usually free or very low.2: Wire transfersWire transfers are best for large amounts or urgent transactions, especially overseas. Domestic wires are completed within the same day, whereas international wires may take up to 5 business days, depending on the currency and the bank. It can be expensive due to the sender or receiver fees and intermediary bank charges.3: Debit and credit card paymentsEvery time you tap, swipe, or enter your card details online for payment, you are making an electronic funds transfer. Cards are used for everyday shopping and online transactions. It involves the MasterCard and Visa networks. The risk of potential fraud also exists with cards, so always keep your card details secure.4: Mobile wallets and payments appsThere are various apps built for transfer, such as Google Pay, Apple Pay, PayPal, and Venmo. These apps allow store payments and instant peer-to-peer transfers. They are very easy to use, convenient, and quick. The only limitations are geography and the amount transfer limit.5: ATM transfersElectronic funds transfer also involves using your debit or credit card to transfer or withdraw money through bank ATMs. Some banks charge an ATM withdrawal or transfer fee if you are using a card from another bank.EFT vs. Online Money Transfer Services (like Wise or Remitly)When you think of sending money, especially internationally, you must often think of companies like Wise, Remitly, or Western Union. These are money transfer services, not the same as EFTs, although they often use EFTs to move money in the background.Let’s understand the difference.FeatureEFT (Electronic Funds Transfer)Online Service (like Wise or Remitly)DefinitionA digital method to move money between bank accountsPlatforms built specifically for sending money, often internationallyUse casePayroll, paying bills, and bank-to-bank transfersSending money to family/friends abroad, business transfersTransfer modeUses ACH, SWIFT, or card networksUses EFTs, but adds extra services and layersSpeed and feesDepends on type (ACH: 1–2 days, Wire: Same day)Often faster, but may include service fees and markupsBest forDomestic transfers, direct bank-to-bank paymentsPersonal or business transfers with added featuresIf you are wondering which is the ideal fit for you, then:Use EFTs when you are transferring between bank accounts directly or setting up recurring domestic payments (like rent or payroll).Use money transfer services like Wise, Remitly, etc. when you want a more user-friendly experience for international transfers, especially if the recipient does not have a bank account or you want competitive exchange rates.How Long Does an EFT Take?The amount of time taken for electronic funds transfer depends on the type of EFT.Type of EFTSpeedACH1-2 business daysBank wire transferSame day or next dayDebit card or credit card2-5 business daysMobile wallets and payment appsInstant or near instantATM transfersImmediate authorizationTo find out about the fastest and most cost-efficient international money transfer methods, check out CompareRemit’s rate comparison tool.What Does an EFT Cost?While EFTS are very cost-efficient, the fees vary based on the method or the provider. The fees for ACH transfers are usually free or a nominal fee. Wire transfer can cost $15 - $50, depending on the bank and country or recipient. Cards and wallets may include currency conversion costs for international use. Always double-check hidden fees, exchange rates, or delays before finalizing your transfer.Benefits of EFT PaymentsHere are the reasons for you to consider EFT payments:Affordable: No middlemen, printing, or postage involved.Speed: You can send money anytime, anywhere.Security: It is regulated, trackable, and encrypted.Great for recurring bills: It is perfect for payroll and recurring bills. Set it and forget it.Paperless: There is no requirement for any checks or physical cash.Drawbacks of EFT PaymentsEFT payments have some downsides as well. Here's what you should be cautious about:Reversal: If you have sent money mistakenly to someone, it may be lost. Reversals are not at all easy, especially with bank wire transfers.Frauds: Electronic funds transfers are still vulnerable to potential phishing and identity theft.Fees on international transfer: Banks and traditional wire transfers might include many hidden charges.Pro tip: To avoid risks, always use a comparison tool and verified platforms before sending the money.What is the Electronic Funds Transfer Act?The Electronic Funds Transfer Act was passed in 1978. It protects the United States’ consumers making EFT transactions. It limits the liability if you quickly report when your card is stolen or lost. It gives you the right to dispute any unauthorized charges. It also requires the banks to show how EFTs work and what your rights are.Understanding your rights is vital, especially if you are transferring a large amount of money overseas or running a business.Compare and Choose SmartElectronic Funds Transfer is here to stay, and they have made moving money globally without physical cash or paper checks easier than ever. But with so many options available today, choosing the right service to transfer money overseas to save time and money can be difficult.Whether you are transferring money to your family, making a business payment, or managing funds internationally, CompareRemit’s exchange rate calculator tools and comparison engine can help you save a lot of time and money, enabling you to make smart decisions.Frequently Asked Questions (FAQs)Q: What is the difference between an EFT and an ACH?An EFT (Electronic Funds Transfer) is a broad term for any electronic movement of money, while an ACH (Automated Clearing House) payment is a specific type of EFT that uses the ACH network. Essentially, all ACH payments are EFTs, but not all EFTs are ACH payments.Q: What is the difference between RTGS and EFT?RTGS (Real-Time Gross Settlement) enables the immediate, individual transfer of high-value funds, while EFT (Electronic Funds Transfer) is a broader term, which can include various methods of electronic transfer with different processing speeds. Q: Is EFT the same as Swift?No, EFT (Electronic Funds Transfer) and SWIFT are not the same. EFT is a broad term for any electronic movement of money, while SWIFT is a messaging network used by financial institutions to send instructions for international money transfers.Q: Is Wise or Remitly an EFT?No, Wise and Remitly are not EFTs themselves—they are money transfer services that use EFT methods (like ACH or wire) to move your money. These platforms often offer faster delivery, currency conversion, and added services for sending money internationally.Q: What is the difference between EFT and ACH?EFT is a broad term for any digital money transfer—ACH, wire, card, or mobile payments. ACH is a type of EFT that uses the ACH network, mainly for U.S.-based direct deposits and bill payments. All ACH transfers are EFTs, but not all EFTs are ACH.