How To Use A Credit Card When Travelling Outside Australia
Posted November 21st, 2009
and last modified December 7th, 2009Taking 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.
Related posts:
- How To Use Credit Cards When Travelling Abroad
- Travelling Overseas With Your Commonwealth Bank Credit Card
- What Is Bad About Dynamic Currency Conversion?
- Where Can I Withdraw Cash Abroad?
- How Do Foreign Service Fees Affect Use-Abroad Credit Cards?
Show Comment Form
Editor's Choice: Our Top Credit Cards
Bankwest Lite MasterCard
Cheapest Credit Card
The lowest stress mastercard, with Australia's lowest MasterCard purchase rate of just 9.99% p.a.
St George Vertigo
Best Bank
Low 2.99% for 6 months (reverts to 11.74%) p.a. interest rate and balance transfer rate, from one of Australia's most respected banks.
Citi Clear Platinum Visa
Low Interest
An excellent low interest credit card offer with 11.49%interest on purchases and 0.99% for 6 months on balance transfers .
ANZ Low Rate MasterCard
Balance Transfer
A very popular card choice with a low rate, annual fee and attractive 0% for 6 monthsbalance transfer offer.
Bankwest Zero Platinum MasterCard
No Annual Fee
Excellent introductory offer with a $0 annual fee for the life of the credit card and a 1.99% p.a. for 12 months on balance transfers