Travel credit cards provide many attractive perks, from airport lounge access and trip cancellation/delay insurance, to complimentary checked bags and priority boarding privileges. But which card should you select?
Answering that question depends on your travel habits and which benefits are most important to you, including earning rate, benefits and annual fee structures of the card you consider.
1. Visa
Travel credit cards provide rewards programs with points or miles awarded with each purchase, plus travel-related perks like primary auto rental coverage. These added perks may make these cards more valuable than cash back options; it is important to know how much the rewards are worth on average and understand their terms and conditions.
Consider what foreign transaction fees each card charges when making comparisons. As these surcharges can add 3% to purchases abroad, finding cards without them is crucial.
Consider co-branded credit cards associated with airlines or hotel chains, which can accelerate your progress toward elite status with those brands and may come with additional perks. Finally, search for cards offering $0 liability guarantee protection as this may help if you travel internationally where risk of card theft increases significantly.
2. Mastercard
Mastercard also offers a selection of prepaid and credit cards that are widely accepted and provide cardholders with various travel protections such as lost luggage reimbursement, primary auto rental coverage, trip cancellation/interruption coverage and more.
Mastercard has long been the go-to solution for B2B online transactions. Software as a Service (SaaS), utilities and telecom operators all rely on Mastercard as part of their ongoing payments to remain operational. High-volume transactions often necessitate Level 3 data, which offers greater insight into individual purchases while helping reduce processing costs. Companies typically utilize virtual cards designed specifically for their needs. As with Visa, Mastercard earns its revenue through transaction fees and related services in the US, such as service fees and data processing fees. Mastercard operates Banknet – an interconnected global network connecting all card issuers, acquirers and processing centers – that enables instantaneous global settlements and allows customers to exchange value instantaneously.
3. American Express
American Express stands apart from Visa and Mastercard by acting both as a credit card network and card issuer, so they have their own rewards programs and perks such as front-of-the-line access to events, hotel upgrades and concierge services. Unfortunately though, Amex cards still carry higher fees than its rivals while having lower acceptance rates abroad.
So it is wise for travelers to carry multiple cards. American Express cards may be ideal for high-spending cardholders with excellent credit who can offset annual fees with cash back or travel benefits they receive; to know whether an Amex card is worthwhile carrying while traveling requires closely reviewing its fees, rewards and credit score requirements in depth. It would also be smart to carry both Visa and Mastercard when traveling abroad since these are more widely accepted by merchants; furthermore they charge significantly lower swipe fees than American Express does.
4. Discover
Discover credit cards are accepted at 99% of places that accept credit cards in the U.S. The cards feature an attractive rewards structure and travel-related perks such as annual travel credits and flight accident insurance coverage.
Card issuer Capital One is also an avid supporter of NHL and other sporting events, and in 2018 announced Venture Miles, a transfer partner program enabling cardholders to redeem reward balances against airline or hotel stays.
Discover is an attractive choice for retail customers due to its no-annual-fee cards and first-year cash back match offer, along with its user-friendly mobile app and security features that appeal to tech-savvy users. However, international acceptance may be limited compared to Visa and Mastercard; Discover has announced plans to increase global coverage through partnerships with local payment networks; however until that occurs travelers should consider other payment solutions when planning international travel plans.
