As you pack for your upcoming trip abroad, you probably plan to bring along a credit card or two. After all, they're a fast and easy way to pay for items, and they're more convenient to carry than large sums of cash. However, using a U.S. credit card outside of the country brings along a set of challenges. By knowing what to beware of when using your credit card abroad, you can ensure no issues arise to ruin your vacation.
Account Freezing
- If you jet off to Europe and start making charges on your credit card, your company might think your card was stolen and freeze your account. If this happens, you'll be unable to use your card until you speak with the company and verify that it was you who made the purchases. This is easier said than done when you're dealing with time zone differences and, in some cases, lack of phone service. To avoid this issue, call your credit-card company before you leave to let them know you'll be traveling out of the country. This way, they can make a note on your account so foreign transactions won't set off theft alerts.
International Transaction Fees
- Some credit card companies charge card holders an additional fee every time they make a transaction outside of the country. According to Investopedia, most companies charge 3 percent for every purchase. While this may not seem like a lot, it can quickly add up when you're on vacation and using your card to pay for hotels, meals, activities and souvenirs. However, not all companies do this, so find out if there are fees associated with foreign use of your card before you leave on vacation.
Overspending
- Whether you're paying for dinners on the beach, trips to the Louvre or luxury spa treatments at your resort, vacation transactions can add up fast, and it's easy to lose track of them when you're using a credit card. You could end up maxing out your cards and having no alternative payment methods, which could certainly put a damper on your trip. To avoid this, make a budget before you leave and stick to it while you're gone. Make sure you know exactly how much money is available on all of your cards before you leave for the airport.
Nonacceptance by Vendors
- Not all vendors accept U.S. credit cards -- and not all vendors are even equipped to process credit card transactions. Depending on where you're traveling, your credit cards could be completely useless. Make sure you have a backup payment method at all times so you don't end up stuck without any money abroad.
Theft
- Theft can occur anywhere in the world -- including your own neighborhood -- but getting your money back can be a lot harder while you're on vacation than while you're at home. You may have a difficult time getting in touch with your credit-card company to have them freeze your account, and by the time you do, the thief could have made countless transactions on your card. Always keep your wallet in a secure place close to your body where it will be difficult for pickpockets to snatch, or even use a money belt or around-the-neck holder designed for passports to keep your cards safe. Remain aware of your surroundings and keep an eye out for anyone who seems to be following you or otherwise acting suspiciously.
