Numerous credit card rewards programs provide lucrative offerings that can help travelers save money when traveling abroad. But to do so effectively, the appropriate strategy must be established prior to departure.
An ideal travel card should waive foreign transaction fees while providing strong purchase and travel protections and generous rewards. In addition, this card should utilize chip and PIN technology for enhanced security purposes.
No foreign transaction fees
Traveling abroad for fun or business? A credit card can provide an easy, safe and simple payment method – just be sure to select a card suitable to your travel needs.
Foreign transaction fees (known as FX fees ) can add up quickly when purchasing overseas. These charges typically range from 1%-3% of each purchase and could quickly add thousands more dollars to your trip’s final bill if not managed carefully.
Avoid unexpected fees when traveling by selecting a credit card without foreign transaction fees. Some travel cards provide this benefit, such as Chase Sapphire Reserve and American Express Platinum Cards which offer airline miles for international purchases. When applying, make sure to give yourself plenty of time for approval, account setup and receiving it by mail – then focus on enjoying your adventure instead!
No withdrawal fees on cash abroad
No matter if it’s for business or pleasure, a credit card can make managing overseas spending simpler. Carrying cash can be cumbersome and its conversion rates complicated; moreover, cash theft risks increase significantly with it.
Credit and debit cards without foreign transaction fees and ATM withdrawal charges are extremely useful when traveling abroad. Furthermore, some cards provide bonus points on expenses related to dining, groceries and gas expenses during your journey.
Prior to your travels, review all card agreements and bank accounts to see which incur foreign transaction or ATM fees. If any do, apply for a credit or debit card that waives them early enough in advance for approval, account setup and receiving the new card in the mail. To avoid interest on overseas cash withdrawals and advances as well, look for one without an APR (although any outstanding balances will still incur interest charges if left outstanding beyond its due date.).
Travel with a backup payment option
Credit cards often provide valuable travel protections, including trip cancellation and interruption insurance. Do your research before selecting one to use overseas. Compare various card offers so that you’re getting maximum value from your international credit card travel expenses.
Before setting out on your journey, be sure to inform your card issuer of your plans. Otherwise, charges in foreign countries could trigger red flags that force the account temporarily locked. Travel notifications can be set up either online or by contacting your card issuer directly.
Utilizing a credit card abroad can simplify travel spending by eliminating currency conversion fees and cash-related interest. Furthermore, your card may offer premium perks and benefits that make your trip even more fulfilling – just make sure that you use it responsibly by paying in full after each purchase to avoid incurring unnecessary debt. Whether it’s just a short weekend getaway or extended international adventure – these simple strategies can make your next journey both enjoyable and cost-efficient!
No interest on cash withdrawals
Credit cards tend to make international spending simpler and less expensive than cash, though it is essential that you understand their fees and terms before selecting the most suitable card for yourself.
Many credit and debit cards now waive foreign transaction fees as an added benefit for their customers, and it may even work with debit cards as well. Check with your bank to see if your cards will be accepted in the countries where you plan to travel; and look out for ATM network symbols on both sides of your card that correspond with global networks used there.
Credit cards can also be great travel companions as they eliminate the need to carry foreign currency and offer more favorable exchange rates than money changers. Just make sure that you clear off your card balance prior to its interest-free utilisation period ending, otherwise hefty interest charges could apply on amounts you withdraw via ATM withdrawals from it.
