When you’re exploring foreign destinations, the last thing you want to worry about is managing your money. Having to constantly search for ATMs or exchange currencies can add stress and unnecessary complications, ruining your travel experience. Fortunately, a credit card offers an easy solution, providing security and convenience when making purchases abroad. With this powerful piece of plastic, you can pay for meals, souvenirs and transportation with a simple swipe or tap.
However, before you whip out your credit card, there are a few things you should know to ensure that you can continue to use it strategically and responsibly. In this article, we’ll address some of the most common questions cardholders have about using their credit card abroad so that you can make the most of this convenient payment method on your foreign trips.
Will I Still Earn Points?
The rewards structure of certain credit cards is one of the main reasons why people apply for them. These types of cards give holders the ability to earn rewards points, cashback, or miles, which they can redeem to offset travel expenses or even cover everyday purchases. Nevertheless, many travellers wonder whether they can still rack up points when making purchases abroad, especially when their credit card provider isn’t based in the country they’re visiting.
The good news is that most major credit card issuers will allow you to earn rewards for purchases made in foreign countries, just as you would at home. To make the most of this feature, you need to familiarise yourself with the specific terms of your card. This way, you can use your credit card on certain purchases and maximize your credit card points. For instance, if you’re a Landers Cashback Everywhere Credit Card holder, you can take advantage of the 2% cashback on dining and 1% cashback on other qualified purchases. This means that you’ll still earn valuable cashback points while enjoying meals at local restaurants or buying pasalubong abroad. With the right card, you can keep earning rewards and making the most of your spending, no matter where you are in the world.
Should I Notify My Credit Card Company Before Travelling?
It’s always a good idea to notify your credit card company before you travel abroad. This simple step helps ensure that your card remains active and accessible while you’re in a foreign country. Credit card issuers often have fraud detection systems that automatically flag transactions made in unfamiliar locations. Without prior notification, there’s a chance your card could be temporarily suspended or declined if the system detects unusual activity.
Many credit card issuers offer an easy way to notify them about your upcoming trip. Typically, it can be through their mobile app, website, or by calling the customer service hotline. By informing your credit card company of your travel dates and destinations, you can avoid unnecessary interruptions to your purchases while traveling.
Can I Use My Credit Card in Foreign ATMs?
Yes, you can use your credit card in ATMs abroad, but there are a few important things to consider before doing so. While most credit cards allow you to withdraw cash from ATMs internationally, this typically qualifies as a cash advance. A cash advance comes with higher fees and interest rates compared to regular purchases, and interest begins to accrue immediately rather than after the usual grace period. This can make using your credit card for ATM withdrawals an expensive option.
So, before using your credit card at foreign ATMs, check with your card issuer about any associated fees for cash advances, as well as the foreign exchange rate they’ll apply to the withdrawal. Some credit cards charge a flat fee per withdrawal, while others may charge a percentage of the amount withdrawn. Additionally, it’s advisable to use ATMs affiliated with well-known banks to reduce the risk of fraud.
Last but not least, while using your credit card for cash may be convenient, it’s better to explore other options, such as withdrawing from a local bank or using a debit card, to avoid the high fees associated with credit card cash advances.
What Currency Will I Be Charged In?
When using your credit card abroad, you'll typically be charged in the local currency of the country you’re in. However, you may encounter situations where merchants or ATMs offer to charge you in your home currency instead, a service known as dynamic currency conversion (DCC). While it might seem convenient to see charges in your home currency, DCC often comes with unfavourable exchange rates and additional fees, making it a more costly option than simply paying in the local currency.
To get the best rate on foreign transactions, it’s generally best to decline the option to pay in your home currency and opt for the local one instead. Your credit card issuer will handle the currency conversion, usually providing a more competitive exchange rate than what’s offered through DCC. Also, make sure to check your credit card terms for any foreign transaction fees, as these may apply regardless of the currency you choose. This can help you get the best possible rates and avoid unnecessary charges.
What Should I Do If My Card Is Lost or Stolen Abroad?
Losing your credit card while travelling can be stressful, but knowing what to do in advance can help you act quickly and minimise any inconvenience. If your credit card is lost or stolen while you're abroad, the first step is to contact your credit card issuer immediately. Most companies offer 24/7 customer support and can block your card to prevent unauthorised transactions. Some banks and credit card issuers even allow you to quickly deactivate or block a compromised card through their mobile app, adding another layer of security. Furthermore, many major credit card issuers provide emergency replacement services and can arrange for a temporary card or a cash advance, depending on the circumstances and location.
Using your credit card abroad adds convenience and flexibility to your travels. However, it’s normal to have concerns about making purchases while you’re out of your home country, as it can involve navigating foreign transaction fees and potential security issues. With these common questions answered, you’ll know how to maximise your card’s features and use them wisely, ensuring you’ll have an easier time enjoying new experiences and not worry about cash or currency exchanges.
