Credit cards are essential when traveling internationally, offering both protections and great perks like waived foreign transaction fees and bonus points on travel expenses or free flight and hotel upgrades.
Cash can be cumbersome and complicated when dealing with foreign conversion rates; using traveler’s checks is much simpler and makes for a smoother travel experience abroad. Here’s how to maximize the experience on your next international vacation:
Convenience
Credit cards provide travellers with convenience, security and extra perks unavailable with cash transactions abroad. Credit card issuers may waive foreign transaction fees; while the best cards also feature chip technology as well as travel-related perks like lounge access and trip protections.
Before traveling abroad, it is wise to set a travel notification. This will alert your card issuer that you’re going out of town, decreasing the likelihood that it is flagged as fraud. This feature can usually be easily completed online or with an app. Also bring multiple cards as backup options should one become lost or stolen during travel – chip-and-PIN cards offer greater security compared to magnetic stripe cards and may be required at automated payment machines such as ticket kiosks or toll booths.
Safety
Credit cards provide several safeguards that make them a more secure alternative than cash when traveling overseas. Specifically, fraudulent charges on stolen cards typically won’t exceed $50 and many come equipped with zero liability and other consumer protection features.
Notify your credit card companies of your travel plans; otherwise they might consider foreign charges suspicious and lock your account.
Additionally, choose a credit card that will be widely accepted in your destination; Visa and Mastercard tend to have stronger international networks than American Express and Discover. Also consider getting one equipped with an EMV chip to avoid additional ATM withdrawal fees abroad.
Perks
Many credit cards offer many perks that make traveling abroad more comfortable. Some cards waive foreign transaction fees while others provide theft and fraud protections, in addition to rewards, travel discounts/offers and airline lounge access.
Some travel credit cards offer affiliation with specific airlines or hotels and allow you to earn reward points that can only be redeemed with that specific airline/hotel, providing greater value in rewards. Other cards provide flexibility of moving points among various airline/hotel loyalty programs.
Some cards offer traveler programs such as TSA Precheck, Global Entry and NEXUS that speed your entry into airports.
Rewards
Credit cards provide international travelers with many rewards, discounts, and deals that make travel more rewarding and affordable. Some cards may even waive international fees and foreign currency exchange rates altogether. Furthermore, these credit cards also come equipped with travel protection features such as primary rental car coverage abroad, trip cancellation insurance and emergency cash disbursement policies to offer optimal protections during their journey.
Some cards provide bonus points in spending categories like dining and gas; others provide valuable perks like lounge access or elite status benefits. It may be hard to find one card that fulfills all your travel goals at once; using multiple cards together could help make that goal a reality.
No foreign transaction fees
Foreign transaction fees can make travel abroad much simpler. Card issuers add surcharges for purchases made outside the U.S. that quickly accumulate when traveling overseas.
Considering these fees can save you significant sums over time, as well as ATM fees on international withdrawals – and make for easier travel planning overall. When choosing a card without foreign transaction fees, be sure to research its acceptance rate in your destination country and whether it uses its most prevalent payment network. And apply well ahead of your trip so as to allow enough time for approval and mailing of your new card!
