For many travelers, credit cards are a preferred mode of payment abroad. First of all, you will be able not to carry lots of cash with you and therefore avoid robbery. Many businesses, for example car rentals or hotels require a credit card to leave a deposit. Plus, credit companies offer valuable insurances for travelers: the travel accident insurance or the baggage protection. So a credit card can be the most suitable way to pay for travel costs. However, there are some pitfalls you should know about. Taking necessary precautions will help you ensure trouble-free holidays abroad.
1. Choose widely-accepted credit cards.
If you are going abroad, choose a universal credit card that will be accepted in most countries. Store cards or plastics bearing little-known brand names may not work overseas.
The most accepted credit brands are MasterCard and Visa. Discover credit cards will work only in few countries because of a smaller payment network. You can use them in Canada, Central America, Mexico, the Caribbean, and China.
2. Be aware of foreign transaction fees.
Typically, every purchase abroad comes with a foreign transaction fee. So discover what extra fees you will need to pay when using your plastic abroad. It will help you pick a less-costly credit card and avoid additional expenses.
Pay attention to Capital One credit cards. It is the only major credit card issuer who doesn't charge a foreign transaction fee.
3. Tell your credit company about your trip.
Contact your credit company and let them know that you are going abroad. Otherwise they can block your account when they see transactions from other countries: they can think that you have become a victim of credit fraud.
Even though it is possible to call the issuer and explain the situation, there is a delay before you can use your plastic again.
4. Check your card expiration date and credit limit.
Check the expiration dates and credit limits of your credit cards. You could spoil your vacations if you suddenly find out that your plastic has expired or you have maxed out your credit limit. If you don't think you will have enough funds, then you can take several plastics.
5. Store your credit card account numbers somewhere secure.
Make copies of both sides of your credit cards and keep them in a safe place. Then make a list of emergency phone numbers of the card issuers to contact them if your plastics are stolen. Having this information handy will make a credit card theft less stressful.
Another good idea is to take several credit cards. They will act as an emergency fund in case you have problems with the first.
6. Check your credit card statement.
When you return home from your trip, check your credit card statement. Thus you will ensure that there are not any unusual charges. If you have made purchases in a foreign currency, you will see a description of your transactions: name and location of the merchant, the amount of the transaction in U.S. dollars, the amount of the transaction in the foreign currency, the exchange rate and a foreign transaction fee. In case you see any unauthorized transactions, contact your credit company.
Keep your receipts from foreign countries for longer than you typically would. It will help you in case you are double charged.
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