Carrying a credit card makes traveling simpler and safer. For starters, individuals do not need to deal with currency conversion. Many travel-friendly credit cards also come with no foreign transaction fees. Besides that, using a credit card helps individuals protect against pickpocketing since there is less cash on hand. However, while there are numerous advantages to using credit cards while traveling, there are a few important considerations to keep in mind.
Check Travel Requirements
A top credit card travel tip is to find out if the credit card issuer needs prior notification about the travel plans. This is because some providers request their customers to notify them whenever they are away, especially when traveling abroad. This way, the card issuer has the necessary information that the customer is abroad, and the card is not flagged for potential fraud whenever an international transaction is made. A common way to inform the issuer of travel plans is through the website, mobile app, or phone. Some card issuers do not require this prior travel notification. However, it can be useful to update contact details if they want to reach out in case of suspected fraud.
Use a Card That Does Not Levy Foreign Transaction Fees
Any foreign transaction fees can quickly add to the overall expenses of international travel when using credit cards abroad. Usually, the fees differ based on the credit card provider. They are usually 1% to 3% of the total card purchases. However, not all credit cards have foreign transaction fees. So, before traveling, individuals should look up which cards have additional fees and avoid taking them along. For cards with any foreign transaction fees, check for important disclosures and rates to avoid any surprise extra charges on purchases while traveling.
Avoid Dynamic Currency Conversion
Along with foreign transaction fees, a credit card customer may also have to pay dynamic currency conversion fees. Suppose individuals traveling to Spain want to spend around 35 euros for a collectible item. In such situations, they may wonder how much the item will cost in US dollars. With dynamic currency conversion, this conversion rate can be known immediately while using the card. However, accessing this information may cost individuals an additional fee separate from the foreign transaction fee. Fortunately, customers can opt out of dynamic currency conversion at the point of sale to avoid paying extra charges.
Use Chip or Contactless Payments
Keep credit card information safe, especially when traveling. Thankfully, individuals can spend money with a chip or contactless card. Also, most businesses globally accept these cards now. Compared to standard cards with magnetic stripes, chip or contactless cards have more layers of security for transactions. A customer gets a unique one-time password or code during every transaction. This code can be read only by the processing network of the specific credit card provider.
In addition, the cards have four-digit PINs that give extra protection against fraud. The combination of the microchip and the PIN significantly enhances the card’s security. Some cards utilize chip and signature technology instead of chip and PIN to verify transactions.
Check Travel Protection Policy
Occasionally, a trip might not go as planned. For example, luggage can get misplaced during the journey and may not reach the destination. A credit card can be very helpful in these kinds of circumstances. The card used to pay for the flight, hotel bookings, and other aspects of the travel plans can offer partial or full reimbursement for the lost baggage. Also, a credit card used to book a rental car can cover any damage due to a collision. Similarly, if individuals have a meal during their travel and the credit card is stolen or lost, the credit card company can offer a cash advance or an emergency replacement card or cash advance. To know all the details of what a credit card offers, individuals should look at the benefits that list down the travel insurance coverage.
Use all the Perks Offered by the Card
Learning about the various perks the credit card offers before heading out for a travel destination can be helpful. Some of the common benefits that most cards offer include TSA PreCheck or Global Entry enrollment credit, airport lounge access with special pricing or complimentary entry, and extra rewards on travel expenses for hotels and rental cars.
Backup With Cash and Extra Cards
Having a credit card during travel is useful. Along with this, individuals must also take some cash, debit cards, and other credit cards. They should keep all of these in different places. For example, if one credit card goes into the wallet, they should keep some cash and another credit card in another bag. They can also use digital wallets, which are useful for storing gift cards, debit cards, credit cards, boarding passes, hotel reservations, and other personal information.
