Not only can you use a credit card when travelling outside Australia for emergency cash withdrawals, but also alleviates the need for you to take large quantities of cash with you. It also serves as a backup for when you can find no outlet at which to cash your travellers’ cheques.
Rules for When You Take Your Credit Card Travelling
The very first rule for this is to take the right card. When you use a credit card when travelling outside Australia, be sure you take the card which will provide the best service to you along with the best rates on usage. Rates vary amongst card providers, and if you have any question as to the rates and services, call your provider.
Secondly, keep a detailed record of emergency contact numbers that can be found on the back of the card. When you use a credit card when travelling outside Australia, you want to be sure if your card is lost or stolen you can notify the card provider as quickly as possible in the case of the card being lost. Visa, MasterCard and American Express all have a zero liability policy, but they should still be notified as soon as the card goes missing.
Next when you intend to use a credit card when travelling outside Australia, be sure to notify your card provider before going. If not, they may not honour charges on your card on suspicion of fraud. Also, be sure to notify them when you return home, so that any foreign charges after your trip is over are stopped. This will take away the threat that someone has gotten hold of your card number.
Be Aware of Foreign Charges and Fees
There is a currency conversion fee by credit card providers when you use your card abroad. This amounts to 2-3%. The same transaction fee will apply to making cash withdrawals at ATMs. Cash withdrawals should be kept at a minimum as they start accruing interest from the time you make them. Also there is a cash handling fee that may be applied. You should be very careful of Dynamic Currency Conversion, which is a situation in which you are charged Australian dollars rather than local currency. Which currency you are charged is up to you by law. Transactions charged in Australian dollars will trigger a 4% fee under DCC, while local currencies are handled at the 2-3% range by your provider.
You should certainly be aware of these fees, but remember the upside of card usage. It is easier to use a credit card when travelling outside Australia, as large quantities of cash are an invitation to theft.
