How To Use A Credit Card When Travelling Outside Australia

Featured Overseas Travel Credit Card

If you are travelling overseas then the Citibank Emirates Platinum Credit Card is a great card to pack and take along with you. You receive a whole lot of complimentary luxury benefits when travelling overseas with Emirates including chauffeur driven rides to and from the airport, lounge passes for any Emirates Lounge in Australia and access to the Marhaba Airport Lounge in Dubai.

• $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%
• Complimentary international travel insurance for you and your family

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

Taking your credit cards travelling with you is a great idea to avoid carrying large amounts of currency around with you.

They also provide a back-up in case you find yourself in a spot without a bureau de change for your traveller’s cheques. In this scenario, at a pinch, you can also use your credit card for cash withdrawals because ATMs are more widespread and are 24-hour.

Rules when you take your credit cards travelling:

The best credit card for the job

Be sure to check which credit card in your possession offers the best rates when travelling abroad. Rates will vary amongst providers. Call your provider and ask these questions.

Keep a record of your card details

Make a note of any credit card numbers on your card, including any emergency contact numbers that can be found on the reverse of your card in case you quickly need to contact the relevant department should your credit card be lost or stolen. Visa, MasterCard and American Express all offer a zero-liability guarantee, but you should still inform your provider the moment a card goes missing.

Tell your provider of your plans

The provider of those credit cards travelling with you should know that you are venturing abroad, and for how long. If not, you may find that their automated fraud-prevention systems stop your purchases because they will be deemed out of the ordinary due to their unexpected location. Make sure they know when you will be back home, so that any purchases continuing abroad beyond that date are rejected – in case your details have been skimmed.

Watch out for foreign charges

Credit card companies charge a currency conversion fee of around 2% to 3% for using your credit card abroad, 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. Cash withdrawals should be kept to a minimum as they will start attracting interest from the day they are made, plus a cash-handling fee may be payable. Be very careful of Dynamic Currency Conversion (DCC), which is where you are charged in Australian dollars rather than the local currency. Which currency you are charged in on your credit card is 100% your choice by law. Transactions made in Australian dollars will attract a DCC fee of 4% or upwards from the foreign retailer or bank, whereas those charged in local currency are handled by your credit card provider at the 2% to 3% already mentioned above.

You should certainly not be put off the idea of taking your credit cards travelling with you, but you must not allow any care-free holiday mood to blind you to the pitfalls of using them abroad.

• 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