When traveling abroad, it’s important to plan ahead and consider how you’ll be paying for your expenses. It is one of the most overlooked aspects of traveling.
Those who do prepare in advance often see carrying cash as the most affordable option for covering expenses, as opposed to paying the foreign transaction fees on their credit cards. The problem is that carrying large amounts of cash is inconvenient and dangerous, and can be avoided with the right credit cards.
Foreign Transaction Fees
Let’s talk about fees. When you use your credit card for purchases outside of your home country, or even for online sites located outside your country, you will be charged a percentage fee for each transaction. The typical fee is 2.5%, which alone may seem minimal but it adds up, especially if you’re using the card frequently or for larger purchases.
Here are some cards that don’t charge foreign transaction fees:
Another notable mention is the Rogers World Elite Mastercard. While it still charges the standard 2.5% foreign transaction fee, users collect 3% cash back on all eligible purchases in U.S dollars., making it an enticing pick up for anyone who frequently crosses the border.
Card Acceptance
Another important thing to confirm before traveling is whether your card will be accepted abroad. It is always safer to carry some balance of cash, but considering having multiple cards in the case of rejection at the POS is important. A quick phone call to your issuer or a Google search should give you an answer, but what we’ve found is that Visa and Mastercard’s have higher acceptance rates than American Express.
Notifying your Issuer
Speaking of contacting your card issuer, it’s also important to inform them of your travel plans, because the last thing you want is for your card to be canceled mid-trip leaving you stranded. Most issuers offer confirmation of transactions via text, but it’s better to be safe than sorry.
Booking Travel
On a more positive note, when you’re booking travel, it’s important to review your credit card’s rewards program to make sure you get the most out of the transaction. Most credit cards offer some sort of travel reward, whether it’s points or cash back. However, some cards offer higher earn rates, so it’s important to consider which card you’re using. An easy way to see if your card may offer travel bonuses is to find out what type of card it is, using StackUp. If it identifies as a “Travel” card, it most likely offers some sort of bonus.
Another thing to look for when booking travel, is what travel insurance your card offers. For example, I just booked a flight with my American Express Gold card because it offers a host of travel insurances:
- Out of Country Emergency Medical Insurance (up to $5,000,000)
- Trip Cancellation Insurance
- Trip Interruption Insurance
- Flight Delay Insurance
- Baggage Delay Insurance
- Hotel Burglary Insurance
- Lost or Stolen Baggage Insurance
- $500,000 Travel Accident Insurance
- Car Rental Theft and Damage Insurance
- Travel Emergency Assistance
Of course, the last thing you want is to run into any kind of problems on a trip, but having these benefits is reassuring.
We hope this gives you some perspective, and another checklist item before traveling abroad. Let us know what your solution is when traveling abroad in the comments.