Travelling abroad is an exciting adventure that allows you to explore new cultures, experience different foods, and create lasting memories. While planning your trip to abroad, it is important to consider your financial needs and how to effectively use your credit card while abroad.
In this article, we will provide you with valuable tips on using a credit card while travelling overseas, ensuring a seamless and secure financial experience.
Choose the Right Credit Cards for Travel
When selecting credit cards for your travels, look for those that offer travel-specific benefits. Some companies offer travel credit cards that come with rewards and benefits specially designed for travelers. Consider cards with features such as no foreign transaction fees, travel rewards, and travel insurance coverage. No foreign transaction fees can save you money on each transaction made abroad. Travel rewards can earn you points, miles, or cashback for every purchase, which can be redeemed for future travel expenses. Furthermore, having travel insurance coverage can provide financial protection in case of trip cancellations, medical emergencies, or lost baggage.
Notify Your Credit Card Company
Informing your credit card company about your travel plans is crucial to prevent any disruptions in card usage. Contact your credit card company before you fly and let them know the countries you will be visiting and your stay duration as well. This way, they can make a note in their system to ensure that your transactions aren’t flagged as suspicious activity. If your credit card suddenly gets blocked due to unrecognized charges while you’re abroad, it can cause significant inconvenience. Providing advance notice can help avoid this situation.
Check for Foreign Transaction Fees
Before using your credit card abroad, check the fee structure associated with foreign transactions. Some credit cards charge a particular fee for each transaction made in a foreign currency. These fees can range from 1% to 3% of the transaction amount, which can add up quickly, especially for large purchases or frequent use. To save money, opt for credit cards that don’t charge foreign transaction fees.
Carry Multiple Cards
Having multiple credit cards while traveling provides backup options in case of emergencies. If one card gets lost, stolen, or declined, you’ll have another card to rely on for making payments. Furthermore, having cards from different companies can increase your chances of finding acceptance in different locations. Some stores may accept cards from one network but not another, so carrying cards from different networks like Visa, Mastercard, or American Express can be beneficial.
Keep an Eye on Exchange Rates
Exchange rates change daily, and these changes can affect the cost of your purchases. Keep an eye on the current exchange rates for the local currency of your travel destination. You can use reliable online currency converters or mobile apps to stay informed. Consider making purchases when the exchange rates are favorable, as it can save you money. However, keep in mind that exchange rates at airports or tourist areas may be less favorable compared to local banks or ATMs.
Avoid Dynamic Currency Conversion
Dynamic currency conversion is an option that allows you to see the purchase amount in your home currency when using your credit card abroad. While it may seem convenient, this service often comes with high fees and unfavorable exchange rates. It’s best to opt for being billed in the local currency of the country you are visiting. This way, your credit card company will handle the currency conversion at a more favorable rate, saving you from unnecessary charges.
Keep Your Credit Card Information Safe
When using your credit card abroad, it’s important to prioritize the safety of your card and personal information. Avoid displaying your card openly, especially in crowded areas or public transportation. Be cautious when using your card in unfamiliar or unsecured locations, such as ATMs in secluded areas. Shield your PIN when entering it and always cover the keypad to prevent anyone from observing it. Consider using an RFID-blocking wallet or sleeve to protect your card from unauthorized scanning and data theft.
Keep Multiple Payment Options
While credit cards offer convenience and security, it’s always wise to have multiple payment options available. Carry a small amount of local currency for emergency situations or instances where cards are not accepted. Additionally, consider carrying a backup credit card or a prepaid travel card, ensuring you’re prepared for any unexpected circumstances.
Use Secure Internet Connections
When making online purchases or accessing your credit card account while travelling overseas, prioritize using secure internet connections. Avoid using public Wi-Fi networks, as they can be vulnerable to hackers. Instead, opt for secure networks such as those provided by reputable hotels, cafes, or use a personal mobile hotspot.
Set Up Account Alerts
To stay informed about your credit card activity while abroad, set up account alerts through your credit card provider’s online portal or mobile app. These alerts can notify you of any suspicious transactions, balance updates, or payment due dates, ensuring you have complete control over your finances throughout your journey.
For more information and tips to help you choose the best credit card in NZ, visit our website Credit Cards Compare.
