Using credit cards when traveling is definitely more secure than traveling with a large amount of cash. However, if you are going to pay for everything with plastic, there are a few things you should know.
Always Notify Your Card Company
By now, you probably already know that you must notify your credit card company if you are going to be traveling overseas. However, you must also notify them even if you travel within the United States.
Credit card companies are proactively protecting you from fraud and this is a good thing. Unfortunately, this can also put a wrench in your travel plans if you do not notify your card company about your travels.
Charges that are outside your local area or charges that exceed your normal spending limits can be declined if the credit card company is not aware of your travels. The last thing you want is to have your card declined.
Bring More Than One Card
No matter where you travel, it is wise to bring several different types of credit cards with you. Not only because doing so allows you to have more money to spend, but also because not all credit cards are accepted everywhere you go.
For example, American Express and Discover are great cards to have, but they are not as widely accepted as Visa or MasterCard. Bringing multiple cards with you ensures that no matter here you go at least one of your cards will be usable.
Be Aware of Merchant Holds
It is extremely important to understand that any merchant may place a temporary monetary hold on the credit cards you use. Although the hold may only last a few days or a week, the hold will be for more money than you actually spent.
Merchants do this to ensure that their fees are paid should you exceed your credit limit. Therefore, you may have less money to spend after certain transactions. Be sure to check your credit balance often so that you are aware of temporary holds and do not exceed your credit limit while traveling. This is also another reason why you need to bring more than one card when you travel.
Check for Hidden Perks
Your credit cards can be a treasure trove of hidden benefits. Many credit card companies offer travel perks such as:
- rental car discounts
- concierge services
- free or discounted hotel meals
- medical travel insurance
- emergency insurance
Be sure to check with each of your credit card providers to see which benefits you can take advantage of while traveling.