How Can I Use My Credit Card in a Different Country?
Regardless of your travel destination, it is not always safe to travel with cash. Not only do you risk loss or theft of your cash, but you also risk poor exchange rates, which is common at airports. Using a credit card is largely the same overseas as in the U.S. -- with the exception of a few optional added fees.
Other People Are Reading
-
Benefits
-
Major credit card brands such as Visa, MasterCard, Discover and American Express are accepted at locations around the world. Use your credit card to make point-of-sale purchases, reserve and pay for accommodations, withdraw cash, make auto rental and room deposits, and purchase public transportation passes and tickets including air, rail, boat and bus travel.
Fees
-
Not all credit card companies impose transaction fees, so do your research before going overseas. According Money Saving Expert's website, "Most credit cards add a 3 percent cost to the exchange rates banks themselves get," which is referred to as a "load." Credit cards that charge consumers above the rates available at foreign currency exchange bureaus and banks cost consumers with each transaction. Save with a specialty card for spending abroad, especially if you must rely on your credit card while overseas.
-
Considerations
-
When using your credit card abroad, repay the balance in full to avoid interest. Credit card cash withdrawals made at an ATM overseas, however, incur a cash handling fee, a foreign exchange fee and a higher interest rate with no interest-free period, according to an article on the uSwitch website.
Prevention/Solution
-
Credit card companies allow consumers to make inquiries about their account as well as report lost, damaged or stolen cards overseas. Check the back of your credit card for international contact numbers, which typically you can call collect without incurring a fee. Most major credit card brands also have websites that accept and transmit secure communication.
Warning
-
Notify your credit card company about any international travel plans you have in advance of your travel dates. Failure to provide your credit card company with advance notification could result in delays and suspensions. Your credit card company's fraud protection department may freeze your account until a representative can establish that you are responsible for the charges made abroad.
-
References
- Photo Credit plane image by Vlaad T from Fotolia.com
