7 Tips on Credit Cards When Traveling Overseas

How does it feel to spend the summer abroad or on your frequent business trips? The adventure is breathtaking, and your trip becomes enjoyable as you leverage on the safety and convenience of credit cards. Universal credit cards and debit cards come in handy to settle your bills for the hotel, car rentals, shopping and souvenirs.

Let's look at crucial tips to consider before and during your trip.

1.      Issue a travel notice to your bank

Find out if your credit card issuer requires you to share your itinerary before traveling. It is a safety requirement so that the bank doesn't flag your card on suspicion of fraud when they detect foreign transactions. Contact the bank on phone or do it online via the particular app.

We understand that some banks no longer require you to inform them about your travel plans as they use fraud technology. Please, update your contact information in case of any communication on suspected fraud.

2.      Carry universal credit cards

MasterCard and Visa are accepted worldwide. Although popular cards such as American Express and Discover have international recognition, they are not accepted by some merchants. You don't want to be limited on places you can transact. Nevertheless, carry the aforementioned and other cards as backup.

Don't rule out carrying several hundred dollars and local currency in your pocket for places such as street markets that insist on cash. Don't stash all your credit cards and their replacement data in one pocket.

3.      Avoid foreign transaction fees

Most credit card issuers have charges for purchases made abroad with a foreign merchant. You are typically charged between 1% to 3% per purchase, and this will cumulatively have a notable impact on your bank balance. Make it a priority to apply for a credit card with no foreign transaction fees before traveling.

Also, ensure that your debit card has no extra charges for foreign ATM withdrawals. Altogether, consider avoiding debit cards for purchases overseas – most debit cards incur foreign transaction fees.

4.      Don't consent to dynamic currency conversion

Foreign merchants reap more from your credit card if you allow them to quote your bill in US dollars at the checkout counter. As much as you avoid currency conversions to determine the prices of commodities and services, it comes at a cost. Always opt for the local currency – you have the final say, don't go by the merchant's suggestion.

5.      Leverage on the perks offered

How well do you understand your credit card benefits? Go for a card that offers reward points and discounts on foreign expenses such as concierge services, car rentals and medical travel insurance. If you often have business trips, get a credit card that offers airport lounge access. It means enjoying special pricing or free entry into an airport lounge. That is quite a deal on longer flights with several hours of layover.

6.      What is your card's travel protection policy?

It is critical to understand the terms and conditions of your credit card. Research widely on travel insurance and settle for a card that provides optimal privileges and benefits. The best insurance policy should include reimbursement for lost luggage, protection for delayed flights, compensation for trip cancellation and accident cover.

7.      Beware of rampant identity theft

Always be on the lookout for fraudsters who are in the business of credit card data harvesting. Their main channels include public Wi-Fi and websites with insecure connections.  Avoid cybercafés and public-use computers when accessing your sensitive data.

Please, use your smartphone to check balance or access credit card information. For ultimate security, use the credit card issuer's app or mobile site. When done, remember to lock your phone to secure your banking details. Consider digital wallets like Google Pay, Apple Pay and Samsung Pay for purchase with improved online protection. 

Credit cards are vital assets that facilitate our traveling locally and overseas. You need not only to transact safely, but save on expenses you incur abroad. Employ the tips in this post to jet off with the peace of mind.

To learn more, reach out to us on https://www.nationalfcg.com/for-better-credit         

BJC