If you use credit cards when travelling abroad you will eliminate having to carry cash around with you as you travel. You will also not have to look for exchange bureaus and places that accept travellers cheques. You can also use them at ATMs if you find yourself suddenly short of cash.
How to use credit cards when travelling abroad
Before leaving
If you plan to use credit cards when travelling abroad there are a couple of things you should do before you leave.
1. Write down all the card numbers that appear in your card including contact numbers in case of an emergency or your credit card is stolen or lost while you are travelling. Both MasterCard and Visa have a zero liability fraud policy so you won’t be liable if it is stolen and used inappropriately, but you have to let the card company know as soon as you discover the problem.
2. Phone your credit card company and tell them know that you will be using your credit card abroad. If you don’t let them know that you plan to use credit cards when travelling abroad your purchases may be refused. Fraud protection systems are in place to monitor your card and if the company is not aware that you have left the country they will be suspicious of any purchases you make. You should also let them know when you will be back in the country so they know where the card will be used at all times.
At your destination
You will be charged between 2% to 3% when you use your credit card abroad as a currency conversion fee. Some card issuers will also make you pay a foreign transaction fee for using your credit card overseas. The conversion fee will apply to any cash withdrawals or other cash transactions you make when you are abroad. Interest will start to accrue on the day that these transactions are made so it is best to keep cash advances to a minimum.
If you plan to use credit cards when travelling abroad keep these points in to avoid running into any problems. Financial difficulties can really ruin a holiday, so it is always best to plan ahead and know what to expect.
