People generally use credit cards while travelling abroad as it is an easy convenient cashless option and the loss on exchange rate is minimal. However, being ignorant about risks involved in using your credit card overseas can attract fraudsters and land you in financial and legaltrouble.Browse through our valuable tips and learn to ensure the safety of your credit card while travelling overseas:
- Note down the contact numbers of your bank
The first step to save yourself from any trouble is to read the terms and conditions issued by the bank for your card. This will help you understand the bank’s obligations in situations such as card theft, unauthorised use, loss of card and other such events. Next, note down the emergency numbers of your bank and keep them on your person so that you can report loss, theft or damage immediately and mitigate any potential loss.
- Avoid keeping all cards together
Credit cards with the highest limits should be kept safely in your hotel room. Use them only when you stand to benefit from rewards on international spends. Ensure that the cards you do carry on your person are in separate bags and wallets to avoid theft of all cards at once.
- Make payments in the local currency and be aware of the exchange rates
You can choose to pay in local currency when travelling. Banks charge a transaction fee for foreign currency transactions. However, they also offer cash rebates for overseas spending which is often enough to cover the transaction fees. Always check that the merchant has charged you in local currency and not your home currency as the exchange rate is unlikely to be beneficial to you in such a situation. Remember that a bank will always offer you a better exchange rate. Also, you would lose out on your rewards which you can earn when you spend ina foreign currency. Most banks also offer a handling fee waiver for overseas spending.
- Don’t lose sight of your credit card while making transactions
Make sure you get your credit card back immediately after you have completed any transaction. Also, keep a check on it while handing it over to a merchant as fraudsters at the POS can note down the card details including the expiry date and CVV number and then misuse the card later. Do not disclose the confidential details of your credit card to anyone, such as your billing information and PIN and beware of card skimming which is the practice of using a small electronic device to record the details of your card to make fraudulent transactions.
- Ensure repayment of your hotel deposit before checking out
Hotels usually block an amount as a pre-authorisation on your card, which means that your limit will be reduced to the extent of the payment of the hotel deposit. Ensure that your deposit is reimbursed before you check out to avoid complication on your bill statement.
- Select a credit card with maximum benefits
When travelling ensure you use a credit card that provides you with the most benefits like cash back, reward points, air miles, free flight tickets and free flight upgrades among others. You can analyse the costs and benefits to see which card is the most suitable for you. For instance, ADCB classic credit card offers Emirates Skywards and also a cashback benefit (http://dubaifinance.com/credit-card/adcb-classic/standard-/12).
At Dubai Finance you can find a comprehensive list of credit cards that offer you great travel benefits. You can narrow down your options to find the perfect credit card to accompany you on your travels.