It’s summer, which means that many of us are packing up our bags and heading for the hills (or the beach, or the museums). The last thing you want to worry about is your credit card.
Unfortunately, all too many of us face hassles with credit card security while traveling — especially during trips abroad. These problems can range from the annoying to the devastating, but most of them are very preventable. This article will walk through several strategies designed to give you the best chance at a worry-free vacation. We’ll discuss pre-departure preparations, card security features, special tips for traveling abroad with a credit card, what to do if the worst-case scenario occurs, and a few travel cards to consider for maximum security.
You wouldn’t leave home without booking your flight or packing your bag, and credit card security is just as important. Make sure to add a few credit card-specific tasks to your pre-departure list.
Here is a list of preparations to consider:
- Call your card issuer to notify them of your travel plans
Many credit card issuers have built-in fraud protection that could shut down your card if it’s used outside of your normal purchase pattern. The last thing you want is to have your card denied at that fabulous Italian bistro, so give your card issuer a heads up.
- Do some research regarding foreign transaction fees
If you carry multiple credit cards, you should know that there might be a wide variation between your cards when it comes to foreign transaction fees. Call your card issuers or do some digging online to compare fees and select the card with the best deal.
- Learn how to contact your credit card issuer while abroad
Toll-free numbers don’t work abroad, so you’ll need a different way to contact your credit card issuer if you encounter problems during your travels. Some cards have international numbers printed right on the back. If yours doesn’t, call them up before you leave and ask them what number to use. Write down this number and keep it with your travel documents.
- Make copies of the front and back of your credit cards
This is one step that’s frequently overlooked, but if your cards are stolen, having photocopies can be very helpful. Many travelers also do this for passports.
- Make sure your card will be accepted abroad
Not all cards are taken around the world. If you have enough time to plan ahead, consider getting a chip-and-pin card, which is more widely accepted abroad, especially in Europe.
Chip-and-pin cards (sometimes known as “smart cards”) are just beginning to emerge in the U.S. market, but they have become the go-to standard in other countries. These cards feature embedded microchips that can hold a large volume of dynamic data. They also require entry of a pin in order to complete a transaction, and that means that a thief who simply has your card number can’t use your card.
Chip-and-pin cards are so ubiquitous abroad, in fact, that you can expect your traditional American swipe card to be rejected at several common locations, including:
- Gas stations
- Parking meters
- Some merchants and retailers
- Destinations in Europe other than major cities
Several American credit card issuers have hopped on the chip-and-pin bandwagon, including:
- American Express
- Bank of America®
- U.S. Bank
Handling your Credit Card while Abroad
So you’ve taken all the precautions before boarding the plane: what about when you’ve reached your destination? There are several steps you can take to avoid fraud, theft, and unnecessary trouble abroad. Consider the following strategies:
- Avoid use of credit card in less-than-secure situations
The street vendor may have a lovely smile and even better food for sale, but this probably isn’t the best place to pull out your credit card.
- Have your travel companion carry a different card as a back-up
Even if you plan on relying primarily on one card, it’s not a bad idea to have a back-up along — and to have it carried by someone else. That way, if your wallet or money carrier is lost or stolen, you aren’t completely out of luck.
- Keep your credit card in sight
Try to hand your credit card directly to the person who will be processing the transaction. You’ll want to avoid situations where someone takes your card out of sight to process a transaction, because that scenario makes it easy for them to steal your information.
- Be cautious with ATMs
ATM fees can be extremely steep for international transactions. In addition, many foreign ATMs (especially outside of western Europe) are not as secure as we may expect from their U.S. counterparts. One tip: if you are traveling abroad and you must use an ATM, choose one that is attached to a legitimate business (preferably a bank), as opposed to a “random” ATM.
- Carry cash or travelers checks as back-up
Try to carry enough local currency or traveler’s checks to get by each day (but not so much that you’re a ripe target for muggers). Credit cards are convenient, but if yours is declined or stolen and you don’t have an alternative method of payment available, you won’t think it’s very convenient. We strongly advise looking into a discreet carrying pouch specifically designed for passports and money, which is much more secure than a wallet or purse.
- Document everything
Keep receipts of all purchases in case mysterious charges are added to your account later. Keeping receipts also helps with expense tracking, so you can stay on budget.
Travel Cards to Consider
Looking for a new card before you head abroad? Consider these important factors for travel-friendly cards include:
- High levels of security and fraud prevention
- International customer service
- Low foreign transaction fees
- Chip-and-pin cards
You may also want to consider additional rewards that can result from international travel with certain credit cards.
Here are a few cards that are worthy of consideration:
- BankAmericard Travel Rewards® Credit Card
- Earn unlimited 1.5 points per $1 spent on all purchases, with no annual fee and no foreign transaction fees and your points don't expire
- 20,000 online bonus points if you make at least $1,000 in purchases in the first 90 days - that can be a $200 statement credit toward travel purchases
- Use your card to book your trip how and where you want – you’re not limited to specific websites with blackout dates or restrictions
- Redeem points for a statement credit to pay for flights, hotels, vacation packages, cruises, rental cars, or baggage fees
- Comes with chip technology for enhanced security and protection at chip-enabled terminals
- 0% Introductory APR for 12 billing cycles for purchases, then 15.74% - 23.74% Variable APR
- Get an additional 10% customer points bonus on every purchase when you have an active Bank of America® checking or savings account
- If you’re a Preferred Rewards client, you can increase that bonus to 25% - 75%
- Capital One Venture Card
- No foreign transaction fees
- Includes Visa Signature benefits such as concierge service
- Additional purchase-based rewards
- Lost-luggage reimbursement insurance
- The $59 annual fee isn’t exactly low, but it’s significantly lower than the American Express card!
- Chase Sapphire Preferred Card
- Earn 50,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $625 toward travel when you redeem through Chase Ultimate Rewards®
- Named Best Credit Card for Flexible Travel Redemption - Kiplinger's Personal Finance, July 2016
- 2X points on travel and dining at restaurants worldwide & 1 point per dollar spent on all other purchases.
- Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening
- No foreign transaction fees
- 1:1 point transfer to leading airline and hotel loyalty programs
- Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 50,000 points are worth $625 toward travel
- No blackout dates or travel restrictions - as long as there's a seat on the flight, you can book it through Chase Ultimate Rewards
This list may have left you a little uneasy. Don’t worry — you’ve already taken the first step by informing yourself. Credit cards are usually part of the solution — not the problem — when you’re traveling abroad. All you have to do is take proper precautions and exercise a bit of due diligence. Just think about how much more relaxing that well-deserved vacation will be, knowing that you don’t have to spend a moment worrying about your credit cards.