How To Use Credit Cards When Travelling Abroad

Credit Cards for Travelling Abroad

The Citibank Emirates Citi Platinum Card is the best credit card to use when you are travelling overseas or interstate. You will enjoy a complimentary chauffeur service, an Emirites Lounge pass and access to the Marhaba Airport Lounge in Dubai instantly when you apply.

• $229 annual fee
• 20.74% p.a. on purchases
• 1.9% p.a. for 12 months on balance transfers
• Cash Advance Rate of 20.74%
• Generous earn rate of 3 Skywards Miles per $1 spent on retail purchases

Click here to read the Citibank Emirates Platinum Card terms and conditions

It is always a wise move to take your credit cards travelling with you when you go abroad.

They provide an easy way to make purchases that does not involve carrying large amounts of cash around with you, or having to search out an exchange bureau as you must when you use traveller’s cheques. They also give you access to any number of ATMs if you are caught short of cash and need an emergency infusion.

Before leaving home:

Make a note of any credit card numbers on your card. That does not only mean your account number, but also any emergency contact numbers that can be found on the reverse of your card so that you can quickly contact the relevant department should your credit card be lost or stolen. Although all credit cards from Visa or MasterCard enjoy a zero-liability feature, so you will never be eligible for fraudulent use, no credit card provider will be impressed by you informing them when you get back that you lost your card on day one of the holiday.

You should also call your credit card company and let them know you will have your credit card travelling abroad for a limited amount of time. If you don’t do this, you may find that your purchases are refused. Credit card companies use fraud detection systems that monitor card activity against previous use. If it spots the card being used in a foreign country, your transactions may be rejected.

Also let them know when you are returning home, so that they will know when to expect foreign use of your credit card to cease. This will help counter any fraudulent activity that may take place once you have left as a result of your details having been skimmed.

When you are abroad:

Credit card companies impose a currency conversion fee of around 2% to 3% for use abroad of a credit card, although most will not impose a foreign transaction fee just for using it. The same conversion fee will apply to making cash transactions whilst abroad, such as cash withdrawals from ATMs. You should keep these to a minimum for the reason that they will start attracting interest from the day they are made, and a cash-handling fee may be payable. If you do make any cash transactions, you should try to hook up to Internet banking as soon as possible and pay down your account to zero, because interest is charged on a daily basis.

The main issue to be aware of when you take your credit cards travelling with you is Dynamic Currency Conversion. This is where the foreign retailer decides to charge you in your own currency rather than in the local currency. This means that they will be responsible for making the conversion into local currency, and they can then charge an extra 4% or more on top of the purchase price. You should always choose to pay in the local currency, in which case it is your credit card provider that will make the conversion at a lower rate of 2% to 3%. It is entirely your choice in which currency you pay, so keep your eyes peeled for it and do not accept it.

• Comparison of Top 10 Credit Card Offers

Editor's Choice: Our Top Credit Cards

Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
HSBC Credit Card	Editor's Choice: 0% for 6 months Balance Transfer & No Annual Fee Featuring a $0 annual fee for life, and 0% p.a. balance transfer for 6 months, the HSBC Credit Card was voted the Best Transactor Credit Card for 2010.	16.99%	20.75%	0% for 6 months	$0	55
Suncorp Clear Options Standard Visa Card	A great 12 month balance transfer offer, combined with a low annual fee and a good interest rate on purchases.	12.24%	17.99%	1.9% for 12 months	$39	0