Getting permission to use your ATM card outside the US

A fellow co-worker of mine came over to London to do a 2-year contract and when he tried to get cash from a HSBC UK ATM machine, his withdrawal was denied. The funny thing is that his ATM card is from a HSBC US bank. It is definitely weird.

But it is also interesting to note that for some US banks, you need to tell them you are travelling abroad in order to get access to cash and making purchases. This may not happen to most people, but it is a stupid restriction. So what defines being abroad? What if you go up to Toronto or down to Mexico City, would you need to call the bank to make sure you can use your ATM or debit card there?

It is embarassing if you were trying to use your debit/credit card for dinner or regular purchase and being told your card has been declined, then you have to call the 1-800 number (which is chargeable because you are calling from abroad) and wait whatever minutes to get your access authorised.