|
When you travel, you
should bring a couple of bank cards with you.
At the least, bring a debit card and a major credit card.
You may also want to bring a separate credit
card as an emergency backup should you need it.
It's a good idea to
contact your card issuing company and ask about
international usage and be sure you understand
the fees. You may also need to notify
them that you intend to use you card
internationally to avoid having it suspended due
to suspicious activity. You can usually
logon to your cards website and set the dates
and countries where you will be using your card.
Make sure you know your
PIN if you plan on using a Credit or Debit card
internationally to withdraw cash. If you
plan to use a card that you typically do not use
to withdraw cash, test it at a local ATM prior
to departing on your trip.
Be sure
to see our page
RFID Blocking Technology for additional information
on securing your bank cards.
International
Transaction Fees
Most companies will
charge you a foreign transaction fee to
withdraw money at an ATM and for every
transaction you make internationally.
However, there are cards that will wave
these fees, so check with your card company
to know what to expect.
When to charge and
when to pay cash
The fewer credit card
transactions you make the better.
Avoid currency conversion and transaction
fees by paying cash for inexpensive items
such as small souvenirs, lunch, drinks, etc.
Use Debit Cards
(not Credit Cards) if possible to
withdraw money from ATM Machines. Make
sure you have the money in your account to
cover your expected withdraws.
Use Credit Cards to pay
for more expensive items.
ATM
Machines
The best way to
obtain foreign currency is by using an ATM
Machine.
Use your Debit Card to withdraw funds
from ATM Machines and not your Credit Card.
Make sure you have the money in your account
to cover your expected withdraws.
There will probably still be
a nominal currency exchange fee but there is
really no way around that. Some banks wave the transaction fee for obtaining
money from a foreign ATM when using a Debit
Card, so check with your
bank to be sure. If your bank does
charge a fee, it's usually 2-3% of the
transaction.
Try not to use a Credit
Card to withdraw funds from an ATM machine
as there will probably be a transaction fee
and you will be charged a higher percentage
interest rate than you normally would be
charged for purchases. Some cards
charge over 26% for cash withdraws and there
may be no 30 day grace period; interest
starts accruing immediately.
If your bank charges a flat rate fee
for using an international ATM, it's better to make a
fewer large withdraws rather than many
smaller ones to avoid repeatedly paying transaction fees.
When you arrive at
your destination, perhaps the airport,
immediately find an ATM machine and withdraw
your money. Once you have your money,
keep it safely in a
Money
Belt or other
secure location.
Be careful about entering your PIN just as
you should in your home location.
Using one hand, cover your other hand while
entering your PIN to help block it from
hidden cameras or people who may be lurking
about.
Travelers Checks -
Leave Home Without Them!
Travelers Checks are
a thing of the past. Simply put, you
don't need them. There may be a fee
when purchasing travelers checks, there may
be an exchange
rate and fee to cash them and you must find
a place to cash them. When you need
cash, use an ATM as described above.
The Best
Bank Cards for Travel
Everyone has their
own unique priorities when it comes to the
type of travel card and awards they would
like to obtain. A card that’s ideal
for a business traveler may not be a good
choice for family travel. Some people
may prefer a card more focused towards
airline miles while others favor hotels.
Some cards may have
no annual fee while others may charge a fee
and depending on the fee, the award percent
earned may be different such as 1.5% for
free and 2% when paying an annual fee.
To obtain some cards, you may need to meet a
minimum level credit rating.
The bottom line is,
you should shop around to find the card that
works best for you.
Personally we use the Capital One Venture
Card with no annual fee and 1.5% back in
travel rewards for purchases. Using
the rewards are simple. You can book
your travel on any travel website and once
the transaction goes through, you can click
an option when logged in to your Capital One
website account and choose to apply your
award credits towards the cost.
Some sample cards
to consider, each having different benefits
and qualifications for credit approval
- Chase Sapphire
Preferred® Card: Best for travel
redemption option
- Wells Fargo
Propel American Express® Card: Best for
travel rewards with no annual fee
- Capital One®
VentureOne® Rewards Credit Card: Best
for flat-rate travel rewards with no
annual fee
- Chase Sapphire
Reserve®: Best for travel redemption
options with an annual travel credit
- Hilton Honors
American Express Ascend Card: Best for
loyalty hotel rewards and a large
welcome offer
- IHG® Rewards
Club Premier Credit Card: Best for a
large sign-up bonus and a free annual
hotel night
- United℠ Explorer
Card: Best for loyalty airline spending
with cardholder perks
- Marriott
Rewards® Premier Plus Credit Card: Best
for loyalty hotel rewards with a free
annual hotel stay
- Premier Rewards
Gold Card from American Express: Best
for earning flexible rewards with travel
insurance an an airline fee credit
- Capital One®
Spark® Miles for Business: Best for
flat-rate business airline miles
- The Business
Platinum® Card from American Express
OPEN: Best for business flights with an
airline fee credit and a large welcome
offer
- Starwood
Preferred Guest® Business Credit Card
from American Express: Best for business
loyalty hotel rewards
- The Platinum
Card® from American Express: Best for
travel rewards with an airline fee
credit and global lounge access
- Uber Visa Card:
Best for bonus travel rewards with no
annual fee
- JetBlue Plus
Card: Best for high-earning airline
loyalty rewards and cardholder perks
|