We all take for granted the convenience and security of using our credit cards within the United States. What is less certain is our ability to use our cards when traveling outside the country or overseas. While some novice travelers may have been under the impression that they can use their credit cards in foreign countries just like they would at home, more experienced travelers have discovered that there are some important issues with international credit card use that must be addressed before and during their trip.
First, credit card holders should always notify their banks in advance of any international travel. Doing so avoids the probability that their accounts will be suspended due to a false fraud alert. Account holders should inform their banks of their dates of travel and the countries they plan on visiting. Care should be taken to include those countries where the cardholder is changing planes, as well as any neighboring countries that they might choose to visit.
Next, cardholders should be aware of any foreign transaction fees that are charged by their banks. These are fees imposed on all transactions processed outside of the United States, regardless of which the currency the transaction is being performed in. Although banks like Capital One offer no foreign transaction fee credit cards, most banks charge fees of up to 3%.
Another charge that credit cardholders should consider is the cash withdrawal fee. In addition to these fees, higher interest rates may apply. Furthermore, there is no grace period on cash withdrawals, make credit cards one of the most expensive ways to access cash while away from home. By comparison, ATM transactions tend to be much more affordable.
Beyond additional charges and fees, it is also important that travelers to Europe consider issues of compatibility. There, many unattended machines at train stations and gas pumps that require cards equipped with the Chip and PIN system. Unfortunately, very few cards issued to account holders in the United States are compatible with this system. American’s without such a compatible card must either see an attendant or just use cash.
Pound per pound, a credit card might be the most useful thing that a traveler can take on an international trip. Nevertheless, it is crucial that cardholders notify their banks before their trip, be aware of compatibility issues, and understand all applicable fees.
Related Posts
- The Best Credit Cards without International Transaction Fees Traveling to other countries can be expensive and the last thing travelers need to worry about are excess credit card fees being levied on all international credit card charges. While most credit cards still charge their customers international transaction fees on all purchases processed outside the United States, a growing...
- Leading Travel Credit Cards – Fall 2011 Although cash back credit cards offer the easiest to use rewards, many consumers prefer travel rewards. This rewards category is one of the trickiest, as many travel rewards cards carry high fees and difficult to redeem rewards. However, a few standouts lack these issues and offer easy to use, high-value...
- Cash Back Credit Cards Vs. Travel Credit Cards If you are in the market for a new rewards credit card, you may be wondering whether you can benefit more from a travel or cash back rewards card. Here are some ideas to help you compare the two different types of rewards programs: Travel Rewards Credit Cards Frequent flyer...
- EMV Credit Card Technology And European Travel Americans have long enjoyed visiting Europe and using their credit cards to make purchases since it is easier than carrying cash or traveler’s checks, and European merchants tend to widely accept Visa and Mastercard and, to a certain extent,  American Express. In recent years, a new system of credit card...
- How to Avoid False Credit Card Fraud Alerts Credit cards are an incredibly convenient method of payment, but only when everything goes according to plan. Banks are constantly looking for ways to avoid losses from credit card fraud, and they occasionally mark legitimate charges as fraudulent. When this happens, customers can have transactions denied and their cards can...
