Financial Issues

It has become easier to obtain funds while abroad, but it is recommended that everyone take multiple forms of money, including traveler's checks, ATM cards, credit cards, and cash. Do not rely on a single means of accessing funds while abroad, but rather, have several options: ATMs can refuse to accept your card or, having accepted it, refuse to return it; and banks are closed on weekends and in the evenings, making it difficult to cash travelers' checks or exchange currency at reasonable rates. In addition, take an emergency cash reserve with you to handle the unexpected.

See also the International Center's Web site article on "Travel Finances" at http://www.umich.edu/~icenter/overseas/travel/index.html/.

Automatic Teller Machines (ATMs). ATMs will allow you to access funds in the local currency from your bank account at home or as a cash advance against a major credit card (typically Visa or MasterCard). Transaction fees are typically low, sometimes less than in the U.S., and the exchange rates are generally good. If you are obtaining a cash advance against a credit card, keep in mind that you will be charged interest against this amount from the date of the advance until the balance is paid in full. If you plan to use a bankcard or a credit card to access funds while abroad, you will need a PIN number that can be used internationally. Check with your bank or credit card company before you leave.

See the MasterCard/Cirrus ATM finder at http://www.mastercard.com and the Visa/Plus ATM finder at http://visaatm.infonow.net/bin/findNow?CLIENT_ID=VISA.

Credit Cards. In addition to using a credit card to obtain a cash advance, you will also find that many stores, hotels, and restaurants accept credit cards. The exchange rate is generally quite good, although some credit card companies have begun adding a transaction fee to the cost.

Make a list of your credit card numbers (without expiration dates), phone numbers you would call if you needed to contact the bank regarding your card, and information on whether family members are signers on the credit card. Place the list in a sealed envelope and leave it with your department administrator or with a UM person designated to contact you during your travels. Not including expiration dates protects you from unauthorized use of the card because the date is required for approval of purchases.

MasterCard Purchasing Card Program (P-Card). The MasterCard Purchasing Card (P-Card) can be used for conference registrations, memberships, and travel expenses. Proper departmental approval is required. Only the cardholder is authorized to use this card; it should not be lent to other people. More information and a downloadable application is available on the Web at http://www.umich.edu/~purch/pcard/. The P-Card Group may be reached at 734-647-7333 or by email at PurchCard@umich.edu.

American Express Cards. American Express cards are generally accepted in a wide range of commercial establishments and, if arrangements have been made in advance, can be used to obtain a cash advance in an American Express office.

Check Cashing in American Express Offices. American Express offices allow its credit card holders to cash checks against their American bank accounts. If you plan on doing so, check with American Express in advance to find out how much and how often you can obtain funds in this way.

Travelers' Checks. Travelers' checks can be obtained before leaving the U.S. from a local bank or, in some instances, from local travel agencies. American Express checks can be cashed at American Express offices abroad with no transaction fee. Travelers' checks drawn on banks should be cashed at a bank abroad; there are often significant transaction fees and/or the exchange rate may not be favorable.

Exchange Rates. Exchange rates change frequently. Be sure to save all receipts from money exchanges; the receipts will indicate the rate of exchange at the time the transaction was made. The use of a corporate credit card will ease this process; exchange rates are noted on the card statement. It is possible to purchase travelers checks in the foreign exchange rate. It is also possible to obtain foreign currency in advance of your trip. Contact your bank for information. For overnight delivery of a small amount of foreign currency, contact Chase Manhattan Bank's Currency to Go at 888-CHASE84.

For foreign currency converters, see Oanda at http://www.oanda.com/convert/classic/ and Universal (Xenon) at http://www.xe.net/ucc/.

Foreign Banks. To open a bank account in a foreign country, take with you a letter of introduction from a bank or credit union in the U.S. This can speed up the transaction and give you quicker access to your money.

Lump-Sum Advances. Faculty and staff may obtain a lump-sum advance from Financial Operations if they are going to be traveling for an extended period of time and/or they will be using funds for items other than travel expenses. The person receiving the money must sign a promissory note, keep legible receipts, and submit an expense report to account for all funds within a month of his or her return to campus.

Some cases in which a lump-sum advance are appropriate:

• the need to pay an on-site employee (but not a UM employee),
• the need to purchase materials abroad that are not obtainable through a UM purchase order,
• the need to pay for a group event (such as the payment of museum admissions for participants in a study-abroad program).

The Travel/Business Hosting Expense Advance Form is available on http://www.umich.edu/~finops/index_js.htm.

Per Diems. Per diems may be requested in accordance with the University's SPG 501.4-1. The amount varies by city and country. For the recommended per diem for the area to which you will travel, refer to http://www.umich.edu/~purch/traveloffice/. For general per diem guidelines, see the U.S. Department of State's Per Diem Web page at http://www.state.gov/m/a/als/prdm/.

U.S. Sprint Calling Cards. The UM Telecommunications Department will issue Sprint calling cards to your department after review of a formal member (usually from your director) explaining the need for such a card.

The University receives discount rates for long-distance calling calls, so faculty and staff are not to use the cards when calling from campus. The cards are intended for use after hours and when UM business takes you away from campus. Faxes also can be sent using a Sprint calling card.

For more information, call Telecommunications at 734-763-2000.

Tax Liabilities. The University does not know your specific tax situation, so you should consult with a tax advisor about any tax liabilities that may affect you as a result of off-campus research or business travel.