Traveling Abroad with Credit Cards

Did you know: credit card companies lost approximately 500 million dollars abroad last year? As you can imagine, this is a problem that needs to be addressed by the banks as well as consumers. For this reason, more and more credit card companies are blocking many legitimate transaction attempts overseas. While this is seen as a safety precaution by the credit card company, consumers see it as an inconvenience.

If you are traveling abroad with credit cards keep the following information in mind:

1. Let your credit card company know that you are traveling abroad. This includes information on your destination, dates, and contact number. While not full proof, this will help to ensure that your card is not unnecessarily blocked for security reasons.
2. Carry several credit cards and ideally they should all be from different banks or lending institutions. This way, if one credit card company blocks your card then another can be used.  In addition, bring the 24 hour assistance phone number of each card company with you on your trip in case your card is lost or stolen.
3. Keep in mind that most credit card companies will charge you an extra percentage  exchange fee when exchanging US dollars to foreign currency. In most cases, this ranges from two to four percent. Check on this before you leave on your trip.
4. A prepaid card full of foreign currency can be useful. This is a great way to avoid your credit card company causing you issues. But remember, your prepaid card will not be blocked or made inactive unless you call the issuer to report it stolen. Also there will be no exchange rate charges. Some of the most common foreign currency prepaid cards include FairFX and Travelex.
5. Unfortunately, it has become more and more common for foreign ATM’s to “swallow” cards. You should not expect the card to be returned if an ATM takes your credit card when you are traveling. Instead, your best bet is to call your credit card company and let them know what happened. American Express travel services will arrange for a new card to be issued within 24 hours. Other credit card companies and banks also offer 24 hour replacement services to ensure that your travel spending is not disrupted by a lost credit card.

The benefits of traveling abroad with credit cards far out weight the drawbacks. If you take precautions and utilize these tips you should be able to avoid any unwanted security issues. And if you are faced with a difficult situation, such as a blocked card, you now know what you can do to get back on track.

You may also want to consider applying for a credit card with a travel rewards airmiles program.  This means for every dollar spent on your everyday purchases, as well as on your trip, you are earning travel rewards points. This may also include free yearly companion tickets for domestic flights. American Express even offers free international companion tickets. So whether you are traveling internationally abroad or domestically a credit card will be of great value.