Don't Rely Solely On Credit Cards While Traveling Overseas |
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Using a credit card twice on a trip to Kamchatka in Siberia proved unsettling for a certain traveler. The card worked fine but after getting home he was in for a nasty shock when his credit card was not accepted at a supermarket checkout. It was both embarrassing and inconvenient.
It took just one phone to get his credit restored. He convinced them that he really charged the $40 worth of reindeer bone jewelry at a folk craft outlet in Petropavlovsk-Kamchatski, Siberia, and made phone calls from Anchorage and Minneapolis two days later on the way home. The company informed him that they tried to call him about the unusual transactions when they were noticed but the phone had been busy and he could not be reached. Four days later a notification arrived in the mail that his account security had possibly been compromised. The moral of this story is that if you intend to use a credit card anywhere you don't visit often, it helps to notify the card issuer before your trip. Otherwise the credit card company may suspend your credit due to some unusual transactions. Embarrassing Problems Before you plan to rely entirely on credit cards for your travel requirements, there are certain facts to keep in mind. Certain hotels and car rental companies may put a hold on your credit card for the amount of your total expected bill. This may lead to your credit line being used up before you actually incur and pay for the charges. All merchants are supposed to notify you if putting a hold or deposit on your card. If this happens, make sure you confirm the removal of the hold when paying your total bill. Another potential problem with credit card use overseas is the lack of protection overseas compared to the States when there are problems over inaccurate charges. There are endless incidents reported of travelers being charged twice for one item or for expenses never incurred and the credit card companies may be unwilling or unable to intervene on your behalf. On making a purchase overseas, the credit card sales slip is usually written in the currency of the particular country instead of US dollars. Always check the sales slip before signing to ensure the correct amount is being charged. Several countries use periods instead of commas in numbers. The charge is converted by your credit card company to US dollar before appearing in your statement. All Are Not Downbeat? Not that there aren't any advantages in using credit cards overseas. As experienced travelers know the main advantage in using credit cards on overseas travel is the interbank exchange rates, usually the best rate for currency exchange for credit card purchases. However an unfortunate recent trend could make your credit card purchases less of a bargain. The favorable exchange rates still apply, but card issuers have started adding fees on transactions made in foreign currency. This is an additional fee to the standard 1% that Visa or Master Card assesses for covering the cost of currency exchange. Therefore when traveling abroad with a credit card the first thing to do is to contact the card issuer to inquire about any fees that apply to your purchases, even if you plan to use your card only in an emergency. Make it a point to call before each trip as policies change without any notice. Therefore using credit cards on your next overseas trip can make travel easier. There's no need to carry as much cash or foreign currency you may not use as you'll have a record of all your purchases. Most major credit cards are accepted worldwide and in many countries credit cards are widely accepted. |
