Traveling abroad is one of the best experiences you can have, but it can also be a bit tricky when it comes to handling money. While it’s easy to swipe your debit or credit card back home, using it overseas comes with its own set of limitations. Here’s everything you need to know about using your debit or credit card abroad.
Things to Keep in Mind When Using Your Credit/Debit Card Abroad
The following are the few most important points you should keep in mind before carrying your debit or credit card overseas.
1. Card selection: Not all credit/debit cards are accepted abroad. Check the countries where your card can be used, even if it is an international card. The card should also give you some rewards for the trip abroad, so you can save a little money.
2. Let your bank know of your travel plans: There is also a possibility that your card might be blocked or inactive for foreign transactions. To avoid this, let your bank know beforehand of your travel dates and destinations so your card stays active and accessible during your trip.
3. Foreign transaction charges: Most banks charge some fee for you to use your debit or credit card abroad, known as foreign transaction fees. This is normally somewhere between 1% and 3% of the total transaction amount. This is something to know before paying overseas with your card.
4. Currency conversion costs: When you use your debit/credit card abroad, the transaction is converted into the local currency. Some banks use their own exchange rates, while others charge additional currency conversion fees. The rates and fees may be different for all banks.
5. ATM withdrawals: You can withdraw cash from an ATM while abroad with your card. However, it will incur extra fees. Some banks charge a flat fee, while others charge a percentage-based fee. In addition, you will find some ATM operators who will charge extra fee for using their machines.
6. Spending limit: There is a maximum credit limit on each credit card; the lower the limit, the more restricted the card will be. If you want to use your credit card abroad, pick one with a greater spending limit due to the high cost associated with overseas travel.
7. Limited card acceptance: Debit and credit cards are widely accepted, but the vendors in many small towns or developing countries may not accept cards at all. It is always a good idea to carry some local cash for small purchases or emergencies where cards won’t be of any use.
8. Beware of the DCC scam: Dynamic Currency Conversion (DCC) is offered at many retailers and even ATMs outside of your home country. However, avoid this facility as the feature involves a fee on the currency conversion that it applies. You will see this added to your credit card statement.
Use a Forex Card as an alternative: If you’re concerned about transaction fees and exchange rate fluctuations associated with credit/debit cards, consider using a prepaid forex card. Forex cards such as BookMyForex card are specifically designed for use abroad and offer zero markup rates and lower fees.
Keep your card safe and secure. When you are traveling, it is important to take steps to keep your card safe and secure. Place them in a safe place such as a money belt or wallet. Be careful about your surroundings whenever you will be using the cards.
Conclusion:
Traveling to another country breaks the monotony of routine, and there’s nothing better than visiting new destinations. However, when it comes to cost management, one must choose the correct payment method. Credit cards and debit cards look very attractive because of the rewards, but high fees can affect your travel budget. We suggest that you instead opt for a prepaid forex card such as BookMyForex zero markup forex card for your next overseas trip.
Also Read: Forex Card Vs Cash Vs Debit Card – The Best Way to Carry Money Overseas
FAQs
1. Do international credit/debit cards have a daily spending and withdrawal limit?
Yes, all credit/debit cards come with a daily spending and withdrawal limit. If you exceed the daily limit, your card will be rendered nonfunctional for further transactions on that given day.
2. Will I have to pay extra from my pocket in case my credit/debit card gets lost?
Yes, in many cases, you may have to pay an extra fee for the replacement of a lost or stolen debit card. Banks often charge this fee to issue a replacement card. The specific replacement fee can vary from one bank to another, and it may also depend on the type of account or card you have.
3. How do I determine the exchange rate for every debit card transaction?
The exchange rates fluctuate on a real-time basis based on market performance. This simply means that you will have to check the exchange rate every time you make a debit card transaction abroad.
4. Will my international credit/debit card support all foreign currencies?
Most international credit/debit cards offer support for only a limited number of foreign currencies. You should confirm with your bank beforehand whether your debit card can be used for international transactions and withdrawals in the country you are visiting.
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