Indians were, once upon a time, the world?s most impecunious travellers, allowed to take only $8 even when they went to the most distant corners of the globe. Today all that is behind us. In fact, we?ve even moved past the days of converting large amounts of money into dollars or carrying travellers? cheques when we go abroad.

With the rapid growth of global banking networks and ATMs in any self-respecting city, and the ubiquity of Visa and Mastercard, you needn?t carry more than loose change when travelling to a foreign country. Most shops, even in developing nations, especially those used to a good flow of tourist traffic, will accept Visa and Mastercard credit cards and some will even accept debit cards.

But, not many of us used to throwing our credit cards around in India are aware of the financial nitty-gritty involved in using them abroad. For instance, if you change money in India before you leave, it is up to you to decide whether you want to accept the offered exchange rate or not, but using credit cards means you have to accept the exchange rate being given by the bank. Also, were you aware of the fact that credit card companies usually add on as much as 2 per cent for processing transactions made abroad, so it?s advisable to limit the number of transactions made with your credit card abroad?

And yes, using plastic money is not without risks, and this is truer for the international traveller. The convenience of credit and debit cards is being capitalised on by identity thieves, who, after getting their hands on your credit and ATM cards, cheques and other personal financial information can wreak both short and long-term havoc on your bank accounts and credit reputation.

Banks list certain countries as high-risk countries for credit card fraud and identity theft. Before you travel, it would be wise to call your bank and find out if the country or countries you are travelling to are included in this list. Most lists include several south-east Asian nations such as Indonesia, Malaysia and Thailand, African ones such as Nigeria, Ghana and Egypt, and some Eastern European countries.

While travelling abroad, while theft is the most obvious form of credit and charge card fraud, fraud occurs in other ways, as well. For example, someone may use your card number (and not the card itself) without your permission. This can happen in a number of ways. Gangs that run credit card rackets may rifle through trash or ATM dustbins to find discarded receipts or carbons to use the card numbers illegally. While handing over your card at a till, a dishonest clerk can make an extra imprint from your card for personal use.

Before you travel, it would be wise to note down your card numbers, their expiration dates, and the phone number and address of each company in a secure place. While making purchases, try to keep your card in view, whenever you can, after you give it to a clerk and retrieve your card promptly after using it. Avoid signing a blank receipt, whenever possible. Draw a line through blank spaces above the total when you sign card receipts.

Also, avoid using your credit card to make international calls through public telephone booths, though most countries now have this system in place and it may seem tempting to do so to save yourself the bother of buying phone cards. Credit card numbers are easily traced through the phones and can land you in trouble.

Sometimes, the problem is slightly different. You may notice that after using your perfectly valid credit card a few times in a foreign country, it starts getting rejected. This may happen because your bank, which scans patterns of purchase, is alerted to the fact that the card is being used outside of the normal area of use or the amounts seem higher than usual. This may happen even within India, but in that case the bank is able to call you to confirm whether you have indeed made the purchases. While you are abroad, this may not be possible and they may bar your card to evade the risk of theft.

To avoid this, it is best to call your bank before you travel to inform them of your plans and find out their rules regarding use of credit cards. If your mobile phone is going to be operational, it?s best to inform them of this so that they can call you in case of doubt. Give the dates you?re planning to be abroad, and the countries you?re visiting.

It may be a good idea to carry more than one credit/debit card and also have alternatives for payment in hand. If you are wary of carrying too much cash, take along some travellers? cheques, just in case. Banks also advice customers to ensure that their bills are in order after returning home and report any discrepancies immediately. And some banks automatically issue fresh cards after the existing card has been used in certain countries, so don?t be startled to get a call saying your card has been temporarily invalidated or if you find it has stopped working a few days after your return. It?s all part of the process to ensure you don?t end up paying for things you have not had the good fortune to enjoy.