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Nov 26, 2018

Credit Card Use Abroad- Everything you Should Know

Credit Card use abroad-Planning that long overdue trip oversees this winter vacation? Wherever you are off to, one thing essential apart from your passport and luggage is your mode of payment. You don’t want to carry a lot of cash, as it’s cumbersome and unsafe. There’s also the headache to convert the exact amount you require in foreign currency. This is where a credit card comes into the picture — it’s convenient, secure, boosts your purchasing power and offers discounts and cashbacks on purchases. While a credit card simplifies your transactions in more than one way, it’s prudent to know the difference in using it abroad from using it in India. Let’s look at a few things you must keep in mind to make the most of it if you are traveling overseas.

Not all cards are accepted everywhere

Your card may be acceptable to most merchants in India, but that may not be the case in another country. So check with your credit card company if your card is valid in the country you are travelling to. You don’t want to be stranded in an alien land with a very useful card otherwise but not accepted in that part of the world. If you are not sure of the acceptance of your card, it’s best you apply for a more widely accepted card or carry multiple cards. Also, speak to your card provider and intimate them of your travel so that your card usage abroad isn’t seen as suspicious, leading to a card block.

Charges on international transactions

Swiping your card abroad can attract some additional charges. The three main types of charges are Foreign Currency Conversion Fee, Foreign Transaction Charge and Cash Advance Fee. Foreign Currency Conversion Fee involves a fee of approximately 1–2% to convert your card balance in Indian rupees to the concerned currency. A Foreign Transaction Charge is 2.5–3.5% of the transaction amount, charged by your credit card issuer. Further, you have to pay a cash withdrawal fee of nearly 1–4% in addition to the standard fee you pay every time you withdraw money using your credit card.
Credit Card Use Abroad- Everything you Should Know

Know your spending limit

You must know your credit card limit before you go on a trip. Foreign trips are expensive and if you don’t have a big enough credit limit, your transactions could be declined if your credit limit gets exhausted. Increase the credit limit on your card or carry multiple credit cards to have a smooth trip.

Get a card protection plan

You can protect your card from the risk of fraudulent transactions, theft, loss etc., by opting for a card protection plan from your credit card provider. Not just your credit card, your debit card and other documents can be protected through a card protection plan. Upon loss of a credit card while on a trip, CPP would help you get emergency assistance on travel and hotel worth the amount assured in the plan.

Keep the card’s customer service number handy Your credit card issuer has a dedicated customer service number to assist you in case of any trouble with the credit card, which includes misplacing it or loss or damage. Keep this number handy so you can block your card or report immediately in case of loss of the card. This will help you protect yourself against any fraudulent activities Credit card use abroad

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