Traveling can be an exciting experience, but managing your finances abroad requires careful planning, especially when it comes to using credit cards. This guide will provide you with some tips and tricks to help you use your credit cards safely while traveling.
Before You Travel
Choose the Right Credit Card
Not all credit cards are created equal, especially when it comes to international travel. Try looking for cards that offer:
- No Foreign Transaction Fees: Many credit cards charge a fee (usually 1-3%) for transactions made in a foreign currency. Choosing a card without these fees can save you money.
- A great example of a credit card with no foreign transaction fees is the Scotiabank Gold American Express card which offers a host of amazing earn rates and perks, and doesn’t charge foreign transaction fees.
- High Rewards: Try using cards that earn lots of points or elevated cash back. Often, these can help to offset the foreign transaction fees.
- Travel Insurance and Protections: Benefits such as trip cancellation insurance, lost luggage reimbursement, and emergency assistance services can provide peace of mind. It’s always nice to have that extra cushion in case anything goes wrong while travelling.
Notify Your Credit Card Issuer
Inform your credit card issuer of your travel plans. This can help prevent your card from being flagged for suspicious activity and potentially frozen. Provide details of your travel dates and destinations. This is becoming less common as fraud identification is advancing, but its better to be safe than sorry.
Set Up Alerts
Enable transaction alerts via text or email to monitor your spending and detect any unauthorized transactions immediately. Or enable mobile banking app notifications so you can stay on top of things.
Know Your Credit Card’s Foreign Transaction Policies
Familiarize yourself with your credit card’s foreign transaction policies, including fees, exchange rates, and any benefits specific to international use.
Carry Multiple Cards
Bring more than one credit card in case one is lost, stolen, or declined. It’s also a good idea to carry a mix of Visa, Mastercard, and other types of cards, as acceptance can vary by country, with some countries being much less accepting of American Express.
While You Travel
Use Credit Cards Wisely
- Prefer Credit Over Debit: Credit cards generally offer better fraud protection than debit cards. If your credit card information is compromised, you’re less liable for unauthorized charges.
- Pay in Local Currency: When given the option to pay in your home currency or the local currency, choose the local currency to avoid dynamic currency conversion fees, which often come with a poor exchange rate.
- Keep Receipts: Save receipts for all your transactions. This can help you track your spending and dispute any discrepancies that may arise later.
Practice Good Security Habits
- Keep Your Card Information Safe: Be cautious when using your credit card, especially at ATMs and point-of-sale terminals. Shield your PIN and keep an eye on your card at all times.
- Use Secure Networks: Avoid entering your credit card information when connected to public Wi-Fi networks. Use a VPN if you need to access sensitive information online. This is just good practice in general, not just while travelling.
Monitor Your Accounts
Regularly check your credit card account for any unauthorized transactions. Promptly report any suspicious activity to your credit card issuer.
Be Aware of Local Customs and Practices
Credit card usage can vary widely by country. In some places, credit cards are widely accepted, while in others, cash is king. Research your destination’s customs regarding credit card use.
After You Return
Carefully review your credit card statements for any unauthorized charges or errors. Dispute any discrepancies with your credit card issuer as soon as possible.
Conclusion
Using credit cards while traveling can be convenient and offer numerous benefits, but it requires careful planning. By choosing the right card, notifying your issuer of your travel plans, and practicing good security habits, you can enjoy a stress-free travel experience. Always monitor your account for unauthorized transactions and review your statements carefully when you return. With these tips and tricks, you can make the most of your credit card while exploring the world.