Pay Attention to Credit Card Offers - Different Payment Ways Used When Traveling.

09/07/2007
Traveling with Credit Cards

Everyone loves to travel! It can be fun and exciting but...it can also be expensive! Especially if you are looking to travel abroad, outside of the USA, UK or Canada, you may be looking at a pretty hefty charge for plane tickets and other costs. As long as you pick the right forms of currency, you should not have a problem traveling for as little cost as possible.

Most travelers stick to the three basic forms of currency: credit cards, debit cards (ATM) and traveler's checks. Obviously you should look at the exchange rates when you are examining which way to pay and you should be looking at convenience and safety as well.

Depending on where you go each form of currency has its upsides and its downsides so choose carefully! This article will pick apart the three main ‘food groups' of currency.

Credit Cards Offers for Charge Cards

Credit cards have gained a lot of popularity in the past few years because of one main thing: rewards! Everyone loves rewards and with credit card companies throwing rewards down their customer's throats, why wouldn't they?! Credit card rewards come in a variety of packages such as cash back, airline miles and hotel discounts. Rewards are the staple of the credit card company's competition amongst themselves for card holders.

Another great reason to use credit cards are that they are accepted nearly everywhere. You can use them at ATM machines for cash advances and you can use them for purchases to save your traveler's checks. Just make sure you check with your credit card company before you leave the country to see their policies regarding international usage because each company offers a different set of rules.

If your credit card is stolen overseas you can easily pick the phone up and have them put a hold on your account while you have another one shipped to you. And chances are you will not be held responsible for more then $50, if someone does decide to use your credit card without your knowledge. Some card companies will even replace your card overnight!

People also use their credit cards internationally to track their spending. Credit cards can be used as a great budget tool if used properly and they can let a card holder know when they are spending too much. If you are trying to control how much you are spending then using a credit card and budgeting off online statements will keep you away from impulse shopping. We all know that when you travel you tend to spend more money, so fight the temptation and budget wisely!

One great option for travelers is to get a pre-paid credit card, or a secured credit card. This card works more like a debit card than a credit card and it ensures that the card holder doesn't spend more than is available. Secured credit cards can be received from any of the major carriers such as VISA, MasterCard, Discover or American Express.

The disadvantages to using credit cards when you travel are that they are not accepted everywhere and you can be tempted to impulse spend. While some places will not accept your card. In these cases you will want to have some other payment option with you. In regard to impulse spending, most people on vacation or travelling spend more money than when they were at home so they run a higher risk of coming home to a huge credit card bill!

Travelers Checks - Alternative to Credit Card

Traveler's checks have long been the staple product of travelers because of their safety and protection. Traveler's checks can be purchased from bank accounts from all of the major banks such as First Premier Bank, Chase, Citibank, Advanta Bank, Orchard Bank and HSBC. HSBC is actually one of the leading international bank that is in nearly every country worldwide. HSBC attempts to service all their card holders no matter what country they are in. Many banks will charge a 2 to 5 percent commission for using their traveler's checks but are free at banks that you use.

If you are thinking about getting traveler's checks then it is advised to stick with the brands that are well known. American Express is the most well known company when it comes to traveler's checks and they are accepted worldwide. Sure, American Express is a great company to use your normal credit card through but it is also the leading company when it comes to traveler's checks.

If you do decide to use traveler's checks on your journey remember to take out check amounts that are small in value, either $20 or $50 because chances are you won't want to be breaking large bills each time you pull out a check. Checks that are lost can be easily replaced if you call your carrier (American Express) as quickly as you can.

The disadvantages of traveler's checks are that they may not be used in rural areas that don't accept them and they may get lower exchange rates than a debit card or credit card.

Debit Cards/ATM Cards

ATM cards are becoming a traveler's best friend nowadays because they seem to hold all of the best features of cash, credit cards and traveler's checks. Not only is a debit card safer than cash but it is the best way to obtain foreign currency as well. By using your debit card at foreign ATM's (if you can figure them out!) you can save on exchange rates, get foreign currency the quickest and have the most convenience.

ATM can be used anywhere that you see a VISA or MasterCard logo (or whatever logo is emblazoned on your card) and they are known to bring wholesale exchange rates to the card holder. The exchange rates are usually better on an ATM card than those at banks, hotels or businesses. Plus, considering that banks are closed on week-ends and ATM's are open 24/7 you have the most convenience possible.

The only true downsides to using ATM cards are that they are not as secure as credit cards. Even unsecured credit cards are more secure than debit cards. The reason for this is that credit cards come with a $50 insurance buffer while debit cards do not- which means if you lose your debit card you could lose most of your checking account along with it!

Paying Your Credit Card Bill Overseas

With the advent of online credit card access, a card holder has more options when it comes to paying their credit card bills overseas. Checking your internet statements will also ensure that you do not rack up a credit card bill that you are unable to pay off. Most credit card companies allow for online bill pay, which allows you to pay your credit card bill without a check. You can pay your bill directly from your checking account.

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Comments

Liza, 11:32 PM, September 09, 2007
I'm a traveler and when I have a chance to go abroad I never miss such an opportunity. Every type of keeping money is good in its own way. I personaly prefer debit cards.

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