The process of informing a financial institution about upcoming travel plans associated with a credit card is designed to prevent unwarranted transaction declines. Cardholders preemptively notify the issuer of their travel dates and destinations, allowing the institution to distinguish legitimate foreign transactions from potentially fraudulent activity. This action helps ensure uninterrupted card usage during travel.
This preventative measure benefits both the cardholder and the financial institution. For the cardholder, it minimizes the risk of having their card unexpectedly blocked, causing inconvenience and potential disruption to their travel plans. For the financial institution, it reduces the likelihood of incorrectly flagging legitimate transactions as fraudulent, saving time and resources spent investigating false alarms. This practice has become increasingly prevalent as international travel has grown, and financial institutions have implemented more sophisticated fraud detection systems.
