6 Credit Card Tips for Travelling Overseas

If a vacation or business travel sends you overseas, credit cards can be an extremely convenient finance option to bring along.  When you use credit cards as your primary method of payment while traveling, you won’t need to worry about traveler’s checks or get overly concerned about having your money stolen, or wonder if you have enough cash on you. Here are some tips for traveling abroad with credit cards:

1. You Still Need Some Cash: As convenient as credit cards are when traveling, remember to keep some cash on you.  How credit cards are processed is changing in some companies, with Canada, Australia and parts of Europe changing to Chip and PIN cards.  American credit cards will not always be accepted in areas using Chip and PIN cards, particularly when paying tolls on roads, at gas pumps or in subway stations.  Keep some cash on you to avoid problems with areas that won’t accept an American card.

2. Get a Credit Card with No Foreign Transaction Fees: When you use your credit card abroad, chances are you’ll be charged a two to three percent foreign transaction fee. These charges are even levied on purchases you make from home with a foreign company, like hotel reservations.

The easiest way to avoid these credit card charges is to get a no foreign fee credit card. Capital one credit cards, including their popular no hassle rewards cards, all charge no transaction fees when you make purchases in foreign currencies.  Having a Capital One credit card is the best way to protect yourself from foreign fees when travelling.

3. Don’t Bring All Your Cards: If you are a member of the multiple-credit-card club, don’t bring them all with you when traveling.  Keeping one or two cards in your wallet helps protect you in the event your wallet is stolen. Plus, if you have a safe in your room, leave at least one card in it just in case.

4. Be More Alert: Just like at home, credit card skimming is a crime all over the world.  Be on the look out for any signs of credit card skimming theft when traveling. Don’t let your credit card out of sight when making payments (the waiter can walk away and swipe through a small handheld unit; the hotel desk clerk can quickly swipe the card through a skimmer when you’re filling out a form and not paying attention, etc).  If you see any unauthorized activity, contact the credit card company immediately to resolve the issue.

5. Don’t Travel with Debit Cards: Credit cards provide  fraud protections that eliminate your liability for fraudulent purchases or at least limit your expense to $50 if reported immediately.  With debit cards, if fraudulent purchases are made you could be  liable for $500 or more if you don’t report the unauthorized purchases within two days of occurring.

6. Know Your Credit Card Emergency Plan: If you are somehow stranded while traveling after you wallet has become stolen, contact your credit card company immediately.  All card companies offer 24/7 emergency assistance to travelers which involves freezing your old credit card accounts to prevent purchases, issuing a new card and having it express delivered to you.  Some credit cards will give you emergency cash through a wire transfer to a bank near your location, can assist you obtaining a new copy of your passport, or help you check into a hotel without a card in hand.  Before you travel, check with credit card companies to se what kind of emergency travel services they offer and it will give you peace of mind in the event you are a victim of theft.  Keep their phone number in a safe place (someplace other than your wallet!) so you can make the call if necessary.