Use Credit Cards and Debit Cards when traveling overseas
First, the big benefit to using your cards: You’ll get the best exchange rate available.
While taking your traveler’s checks to a currency exchange counter or an overseas bank, you’ll be charged high retail exchange fees, plus additional fees. When you use your cards, you’ll get the wholesale exchange rate reserved for big banks and corporations.
The caution: Watch out for fees from your own bank and card issuers. Visa and Mastercard charge a 1% fee, and most banks will pass that on to you. But some will tack on their own charges as well and that could add up to an additional 2%.
Before you go – or before you choose a new card – learn the policies. Call each of your card issuers and find out their fees, then choose the two with the lowest exchange fees. Always take 2 cards, just in case one is lost, stolen, or damaged.
Since many credit card issuers are now trying to protect card holders, call each of them before you leave and let them know your travel plans. Let them know the travel dates and the countries and cities you’ll be visiting. Then the card issuer will know it’s you and not a thief.
If you fail to do this, the card issuer could put a freeze on your account – leaving you with no funds while you’re traveling. That would put a definite damper on your vacation.
While you’re talking to them, ask for an international contact number. You won’t be able to use their 800 numbers once you’re outside the country, so you need a working number with an actual area code – just in case your credit card is lost or stolen.
Do the same with your bank. Ask about their exchange fees, and their ATM fees. Since fees of $2 to $5 per use can make ATM withdrawals expensive, try to limit the number of times you use them. Make one large withdrawal to last a few days rather than using the machine each day.
Be sure to tell the bank about your travel plans and get their international contact number as well.
Test your ATM card before you leave home and if your PIN number includes letters, get it changed to 4 numbers. Many ATM’s outside North America don’t have letters on the keyboard.
If your plans change and you extend your stay overseas, be sure to use those international contact numbers to let both your credit card issuers and your bank know. Otherwise, when they see charges from Paris when you’re supposed to be back in Houston or L.A., they’re apt to freeze your account.
BestRateforCreditCards.com your resource for credit cards, business credit cards, student credit cards, secured credit cards, and prepaid credit cards. We also provide a weatlth of information about the importance of having credit cards and how they will benefit you.
