Using your credit card while traveling in another country can be a huge convenience. Who wants to waste all of the extra time in an airport waiting in the currency conversion line? Sure, the Euro makes it a little bit easier while traveling between countries in Europe, but there's still places that don't use the Euro, and if you're not traveling in Europe, you're looking at a currency changeover every time you get off of a plane. Even if you're only going to one country, you're going to need a lot of money for a vacation stay, and it's incredibly dangerous to have all that money on you. So, you're going to have to have some way to carry all of that money without carrying all of that money. So credit cards, of course, seem like a great alternative to carrying cash.
In a way, they are. You can use them at most stores
and restaurants all over the world, and most ATMs
will give you a cash advance. You can even deposit
an extra amount into your credit card account, so
that you don't get charged extra fees for an advance.
There are drawbacks as well, however, and what many
people don't realize, is that there are a lot of
fees associated with using your credit card abroad.
Most people who travel with their credit cards are
unaware that credit card companies and issuers charge
an administration fee every time you make a purchase
in a foreign currency. This fee is heaped on top
of the regular fee a bank charges on their normal
conversion rates. The total charge will vary from
one bank to the other and is set out in the cardholder’s agreement,
which,
unfortunately, most people do not make themselves
familiar with.
This does not mean that your only option is to
carry cash on your business or pleasure travels
abroad. Traveler's Cheques are a great way to keep
your money for traveling abroad. Not only is your
money universal, but it also is protected by the
company in case of loss or theft. If your cheques
are lost or stolen, you can have them easily cancelled
or replaced all over the world at any time. Some
companies now offer Traveler Cheque cards, much
like gift cards and debit cards, and are similarly
protected.
Also, make yourself familiar with the terms of
the banking agreement at your bank. If the fees
for using your ATM card are better than those of
your credit card, using your bank account abroad
is probably a feasible alternative. This is especially
useful if you have a debit card attached to your
checking account that can be used wherever Visa
or Mastercard is accepted. The best thing you can
do, in preparing to go abroad, is be aware of special
charges that these financial institutions make for
your convenience. Once you are armed with this information,
you can make the best educated decision about
how to handle your money while abroad.
