Travelling Soon? Essential Tips For Using Your Credit Card Abroad

By Author: Somesh Das
Total Articles: 3
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Ever packed your bags for an overseas trip and wondered ‘How’s my credit card going to behave abroad?’ Yes,credit cards are helpful but sometimes unpredictable in new places. Worried? Don’t be. We have a host of tips for you to make your credit card work wonders on your travelling adventures.We will show you how to turn your credit card into a savvy companion. Let’s break down the points!

1. Notify Your Bank Before You Travel
One of the most important steps before your journey is informing your credit card issuer about your travel plans. Many banks monitor transactions for suspicious activity, and using your card in a foreign country without prior notice may trigger security measures. This will lead to your card being temporarily blocked. Most banks offer the option to notify them of your travel plans through their app or website, making this process quick and painless.

2. Know the Foreign Transaction Fees
Before you start swiping, it’s imperative to be aware of any foreign transaction fees associated with your credit card. These fees typically range from 2% to 3% of each purchase made outside ...
... your home country. While these charges might seem small, they can add up over time. The good news? Some credit cards (travel-focused ones in particular) waive foreign transaction fees altogether. Consider applying for one of these cards before your trip to avoid unnecessary costs.

3. Always Pay in Local Currency
It’s almost always better to choose in paying for things in the local currency when travelling. The reason? Paying in your home currency involves Dynamic Currency Conversion (DCC). This often comes with hidden fees and poor exchange rates. By opting for the local currency, you’ll be charged at the card network's exchange rate (which is generally more favourable).

4. Use a Card with Travel Perks
Travel rewards credit cards are designed to enhance your travel experience by offering perks such as free airport lounge access, travel insurance, and no foreign transaction fees. All of these manage to level up your travel experience. Some cards also allow you to earn points or miles on your purchases which can be redeemed for future flights or hotel stays. If you’re a frequent traveller, using a card with travel perks can make your journey more enjoyable and financially rewarding.

5. Carry a Backup Card and Some Cash
While credit cards are widely accepted in most parts of the world, it’s always a good idea to carry a backup card and some local currency just in case. Some smaller businesses, particularly in rural areas, may not accept cards or you may find yourself in a situation where your primary card doesn’t work due to network issues. A second credit card from a different issuer can also be useful if your main card is lost or stolen.

6. Avoid ATM Fees
Using your credit card at ATMs abroad can come with high fees, both from your card issuer and the ATM operator. To avoid these charges, use your credit card for purchases whenever possible and rely on your debit card for cash withdrawals. Some travel-focused credit cards and banks offer reimbursement for ATM fees. So, it’s worth checking if your card includes this benefit before you depart.

7. Take Advantage of Travel Insurance
Many credit cards come with built-in travel insurance. It can be a lifesaver in the event of trip cancellations, lost luggage, or medical emergencies abroad. Review your card’s insurance policy before your trip to understand what’s covered and what isn’t.

8. Monitor Your Spending and Statements
While abroad, it’s central to keep track of your credit card spending and regularly monitor your account for any suspicious activity. Most banks provide mobile apps that allow you to check your balance, review recent transactions, and even freeze your card if necessary. Staying on top of your spending helps you manage your budget.

9. Know Your Credit Limit
Overspending abroad can easily push you close to your credit limit. Keep an eye on your available credit to avoid maxing out your card, which could lead to declined transactions or penalties. If you anticipate high spending, consider requesting a temporary credit limit increase from your card issuer before your trip.

10. Protect Yourself from Fraud
Be cautious when using your card, especially at unfamiliar ATMs or in crowded places. Stick to well-known, reputable establishments and avoid giving your card to anyone to take out of your sight. If you suspect any fraudulent activity, contact your card issuer immediately. Most credit cards offer zero-liability protection, meaning you won’t be held responsible for unauthorized charges. Remember though – swift action is essential.

11. Keep a Copy of Your Card Details
In case your card is lost or stolen, it’s helpful to have a copy of your credit card details. This also includes the customer service number for reporting lost cards. Keep this information in a safe place, separate from your physical card. Having this on hand can make it much easier to resolve any issues quickly.

12. Use Contactless Payments
Many countries have fully adopted contactless payments. It offers a faster, more secure way to pay. If your credit card supports contactless technology, take advantage of it when traveling. Not only does it reduce the risk of fraud by minimizing the physical handling of your card, but it also speeds up transactions in places like public transport or busy retail stores.

While travelling, remember that your credit card is ready for adventures – as much as you but it needs prep work too. Remember and apply these tips on your travels and your adventurous ways will not suffer any kind of negative consequences.

using your credit card abroad can enhance your travel experience by offering convenience, security, and potential travel perks. To make the most of it, notify your bank before traveling, use a card with no foreign transaction fees, and pay in the local currency for better exchange rates. Stay vigilant by monitoring your transactions regularly. With proper planning and responsible use, your credit card can be a valuable tool for hassle-free and secure international travel.