When traveling, I feel “safer” when I use a credit card rather than if I carry cash or a debit card. That’s because it seems easier to lose track of cash spent when you’re on the go. So given that concern, I tend to choose credit cards to make my transactions while traveling.
SueMay 16, 2009 at 9:53 am
You could rack up extra foreign currency exchange fees with a card. My bank has charged me a lot of extra fees on trips. Yep, you pay for the convenience of using plastic even as you claim that it is safer.
@Sue
You are right, most credit cards charge a currency conversion fee. But there are actually a few that don’t. Check out Capital One and Charles Schwab. However, applying for such a card for the purpose of getting a short term deal on a trip may not be worth the effect this new card will have on your credit score.
There are ways to minimize the exchange fees though. For one, use cards with the best terms for travel and evaluate your existing cards to find out which have the lowest charges for currency exchange (these usually range from 0% to 3%) and which have the best terms for use during travel.
Contrary to what you might expect, currency exchange through other avenues can actually cost more! So if you change currency at the hotel, airport, through local merchants or tourist traps on a cash basis, you can be charged more. So using a credit card may actually turn out to be a better deal.
Bank TrackMay 19, 2009 at 5:22 am
I also agree that you should avoid changing money at local merchants as they’re looking to make a little extra from your transaction. I’d like to add my .02.
I would use ATM and debit cards when you can’t use credit. For better exchange rates, use your ATM rather than visiting a currency exchange location.
A corollary to that is to avoid getting cash advances on your credit card. It’s going to cost you to get money from the ATM using your credit card because rates for cash advances are typically higher.
SarahMay 19, 2009 at 8:39 pm
Are you sure that Capital One doesn’t charge fees for currency exchange? We used my husband’s Capital One last year in Greece and was charged 1% since my cards were both 3%.
EricMay 20, 2009 at 1:01 am
*Raises hand excitedly*
I’m actually in Australia right now so I think I can relay some tips. Woohoo. 🙂
I’m carrying a Capital One card (No Hassle 1% cashback) which I use exclusively here in Australia because it’s widely accepted (Mastercard), does NOT charge any foreign transaction fees (answer to Sara’s comment above), and gives me rewards at the same time. I also have a Bank of America checking account which is partnered with Westpac Bank in Australia (one of the four big banks of Australia) through their Global ATM Alliance. This allows me to use my BoA ATM card to withdraw Australian money (fee-free) from any Westpac ATMs (numerous here). Between those two cards, I have all my access to funding without any fees. The only thing is that the current exchange rate has been dropping since I first got to Australia in February. 🙁
As for booking flights, you should definitely check Qantas Airlines for ongoing specials. I know you live in the Bay Area and I also live in Northern California so I’m positive about the deals. Google for the Qantas specials webpage and you can get deals as low as $715 roundtrip (including taxes). That’s how much I paid for mine and I believe the promotion is still going on. Plus, Qantas is a lot better than United Airlines to fly to Australia but you can check United to see if they have specials also.
Lastly, if you’re ambitious, you can apply for a Citi Premierpass Elite card and charge the flight to the card, netting you 20,000 Thank You points as a sign up bonus, plus thousands of more points for the miles you flew and the dollar amount of the flight itself. This can be worth a domestic flight to you or several $100 gift cards. I used this strategy myself earlier and got loads of points. I remember you did a review of the Citi Forward card (not sure if you actually own one) but you can link all of your Thank You point accounts together to pool all the points.
Anyways, these are the things that I did for my trip to Australia. Feel free to email me if you’re interested in more tips or have any questions. Be happy to help! 🙂
Agreed. In my opinion ATM’s are the best way to access cash overseas – depending on your bank of course. Some banks like Bank of America do not charge any fees if you get cash from ATMs within their network (Westpac in Australia). Otherwise, if you have a credit union you are likely to get great rates. I am currently charged 1% when I get cash overseas at any ATM.
If I use a credit card it is always a Captial One as they do not charge any fees. Any other credit cards are not worth the fees (2.7% for AMEX – 3% for Citicards).
Another option if you are interested in having cash is signing up for an account at http://www.xe.com. You can send a check to yourself in Australian dollar currency. All rates are shown before you proceed with the transaction.
Great list. I think these cards can be of use to us but we also need to be aware of the opportunity being thrown by the airlines and various other intermediaries as well. They can be equally good. Using ATMs when you need money is a good idea too.
I’d be careful about doing the exchange at the ATM, too. In addition to the exchange, the ATM you use may charge you a fee, and the financial institution you use may also charge a fee. Personally, any time I travel out of the country, I carry small amounts of cash in the currency of the country I’m traveling to and I take two credit cards to cover any other purchases. Typically I don’t use my debit card but that’s only because it’s a pain to notify Visa that I’m traveling. I can let me credit union know, but Visa doesn’t see the notes on the financial institutions side, so if they flag my card for being used overseas, they freeze it and I have to call in to get it unfroze. Not really that big of a deal, but inconvenient most of the time.
One of the “dangers” of using credit cards is that you can find yourself in a situation where someone (restaurants or other) will copy your card without you noticing it and then start spending your money. Often times you’ll not find out until you’re back home and check your account.
I’ve had a few friends experience this (even in supposedly civilized countries).
/Mikael
WingsMay 30, 2009 at 3:10 pm
Generally whenever I travel internationally I try and use ATM or debit cards for monies.
LindaJune 5, 2009 at 10:58 am
My son is being asked if he wants the credit card charged in American dollars or australian dollars — he is using a capital one. What is the best choice?
JoshuaJune 8, 2009 at 9:17 pm
ATMs are the best way to access cash overseas almost in any City and any Country you can find them. But you have to be careful with it because if you have all your money in your bank and you lose the card maybe you’d have to come back walking home.
KayOctober 19, 2009 at 12:17 pm
Generally, traveler’s checks serve the best or ATMs.These modes used to be a hassle but not anymore. I personally use credit cards as they are the most convenient and I don’t have to keep a check on my spending that way 🙂 . I would still go with traveler’s cheques, they are accepted everywhere.
Wendy B.April 2, 2010 at 1:29 am
I used my ATM card in France and had no problem getting $20.00 here and there. The bank does charge $5.00 every time it is used at the ATM. I wish I knew that before I used it. 🙁
Sean BJune 22, 2010 at 3:41 pm
You should always watch out for the sort of machines you use your card on. Some are set up so that they steal all your details, so be more vigilant.
Mia KellyFebruary 10, 2011 at 12:19 pm
I always use credit cards while traveling. If you’re going on a trip anyway, it only makes sense to have a rewards card ready.
ewalletFebruary 10, 2011 at 11:34 pm
I agree with some, I only use debit cards or cash, and put them in a safe spot close to me, especially while traveling in 3rd world countries where theft is a major issue.
A credit card is the best choice for monetary transactions. They’re cheaper than traveler’s checks (which are no longer widely accepted), they’re convenient and can serve as a buffer if problems arise.
CiaraMarch 3, 2012 at 10:51 am
I normally travel a lot as a part of my profession as well as my passion. Using a credit card is safe for monetary transactions, IMO.
{ 20 comments… read them below or add one }
When traveling, I feel “safer” when I use a credit card rather than if I carry cash or a debit card. That’s because it seems easier to lose track of cash spent when you’re on the go. So given that concern, I tend to choose credit cards to make my transactions while traveling.
You could rack up extra foreign currency exchange fees with a card. My bank has charged me a lot of extra fees on trips. Yep, you pay for the convenience of using plastic even as you claim that it is safer.
@Sue
You are right, most credit cards charge a currency conversion fee. But there are actually a few that don’t. Check out Capital One and Charles Schwab. However, applying for such a card for the purpose of getting a short term deal on a trip may not be worth the effect this new card will have on your credit score.
There are ways to minimize the exchange fees though. For one, use cards with the best terms for travel and evaluate your existing cards to find out which have the lowest charges for currency exchange (these usually range from 0% to 3%) and which have the best terms for use during travel.
Contrary to what you might expect, currency exchange through other avenues can actually cost more! So if you change currency at the hotel, airport, through local merchants or tourist traps on a cash basis, you can be charged more. So using a credit card may actually turn out to be a better deal.
I also agree that you should avoid changing money at local merchants as they’re looking to make a little extra from your transaction. I’d like to add my .02.
I would use ATM and debit cards when you can’t use credit. For better exchange rates, use your ATM rather than visiting a currency exchange location.
A corollary to that is to avoid getting cash advances on your credit card. It’s going to cost you to get money from the ATM using your credit card because rates for cash advances are typically higher.
Are you sure that Capital One doesn’t charge fees for currency exchange? We used my husband’s Capital One last year in Greece and was charged 1% since my cards were both 3%.
*Raises hand excitedly*
I’m actually in Australia right now so I think I can relay some tips. Woohoo. 🙂
I’m carrying a Capital One card (No Hassle 1% cashback) which I use exclusively here in Australia because it’s widely accepted (Mastercard), does NOT charge any foreign transaction fees (answer to Sara’s comment above), and gives me rewards at the same time. I also have a Bank of America checking account which is partnered with Westpac Bank in Australia (one of the four big banks of Australia) through their Global ATM Alliance. This allows me to use my BoA ATM card to withdraw Australian money (fee-free) from any Westpac ATMs (numerous here). Between those two cards, I have all my access to funding without any fees. The only thing is that the current exchange rate has been dropping since I first got to Australia in February. 🙁
As for booking flights, you should definitely check Qantas Airlines for ongoing specials. I know you live in the Bay Area and I also live in Northern California so I’m positive about the deals. Google for the Qantas specials webpage and you can get deals as low as $715 roundtrip (including taxes). That’s how much I paid for mine and I believe the promotion is still going on. Plus, Qantas is a lot better than United Airlines to fly to Australia but you can check United to see if they have specials also.
Lastly, if you’re ambitious, you can apply for a Citi Premierpass Elite card and charge the flight to the card, netting you 20,000 Thank You points as a sign up bonus, plus thousands of more points for the miles you flew and the dollar amount of the flight itself. This can be worth a domestic flight to you or several $100 gift cards. I used this strategy myself earlier and got loads of points. I remember you did a review of the Citi Forward card (not sure if you actually own one) but you can link all of your Thank You point accounts together to pool all the points.
Anyways, these are the things that I did for my trip to Australia. Feel free to email me if you’re interested in more tips or have any questions. Be happy to help! 🙂
Agreed. In my opinion ATM’s are the best way to access cash overseas – depending on your bank of course. Some banks like Bank of America do not charge any fees if you get cash from ATMs within their network (Westpac in Australia). Otherwise, if you have a credit union you are likely to get great rates. I am currently charged 1% when I get cash overseas at any ATM.
If I use a credit card it is always a Captial One as they do not charge any fees. Any other credit cards are not worth the fees (2.7% for AMEX – 3% for Citicards).
Another option if you are interested in having cash is signing up for an account at http://www.xe.com. You can send a check to yourself in Australian dollar currency. All rates are shown before you proceed with the transaction.
Great list. I think these cards can be of use to us but we also need to be aware of the opportunity being thrown by the airlines and various other intermediaries as well. They can be equally good. Using ATMs when you need money is a good idea too.
I’d be careful about doing the exchange at the ATM, too. In addition to the exchange, the ATM you use may charge you a fee, and the financial institution you use may also charge a fee. Personally, any time I travel out of the country, I carry small amounts of cash in the currency of the country I’m traveling to and I take two credit cards to cover any other purchases. Typically I don’t use my debit card but that’s only because it’s a pain to notify Visa that I’m traveling. I can let me credit union know, but Visa doesn’t see the notes on the financial institutions side, so if they flag my card for being used overseas, they freeze it and I have to call in to get it unfroze. Not really that big of a deal, but inconvenient most of the time.
One of the “dangers” of using credit cards is that you can find yourself in a situation where someone (restaurants or other) will copy your card without you noticing it and then start spending your money. Often times you’ll not find out until you’re back home and check your account.
I’ve had a few friends experience this (even in supposedly civilized countries).
/Mikael
Generally whenever I travel internationally I try and use ATM or debit cards for monies.
My son is being asked if he wants the credit card charged in American dollars or australian dollars — he is using a capital one. What is the best choice?
ATMs are the best way to access cash overseas almost in any City and any Country you can find them. But you have to be careful with it because if you have all your money in your bank and you lose the card maybe you’d have to come back walking home.
Generally, traveler’s checks serve the best or ATMs.These modes used to be a hassle but not anymore. I personally use credit cards as they are the most convenient and I don’t have to keep a check on my spending that way 🙂 . I would still go with traveler’s cheques, they are accepted everywhere.
I used my ATM card in France and had no problem getting $20.00 here and there. The bank does charge $5.00 every time it is used at the ATM. I wish I knew that before I used it. 🙁
You should always watch out for the sort of machines you use your card on. Some are set up so that they steal all your details, so be more vigilant.
I always use credit cards while traveling. If you’re going on a trip anyway, it only makes sense to have a rewards card ready.
I agree with some, I only use debit cards or cash, and put them in a safe spot close to me, especially while traveling in 3rd world countries where theft is a major issue.
A credit card is the best choice for monetary transactions. They’re cheaper than traveler’s checks (which are no longer widely accepted), they’re convenient and can serve as a buffer if problems arise.
I normally travel a lot as a part of my profession as well as my passion. Using a credit card is safe for monetary transactions, IMO.