Did You Know? The Pros and Cons of Carrying a Credit Card Abroad
Using a credit card for payments is one of the best options in today's world. Not only does it provide convenience, but sometimes the credit card you hold also offers various promotions, including discounts, reward points, and cashback.
Especially when traveling abroad, there’s no need to carry a lot of cash; just one credit card can do almost everything in (nearly) every country. Let's take a look at the advantages and disadvantages of carrying a credit card when traveling abroad.
Advantages of Carrying a Credit Card Abroad
- You can use reward points from your credit card to redeem free travel tickets according to the promotions available at that time.
- Earn additional reward points from credit card transactions or air miles.
- You can increase your spending limit even if your limit is already full.
- Enjoy special discounts on hotel bookings or duty-free shops.
- Some credit cards do not charge fees for international usage.
- If your card is lost, just call to block it so it cannot be used.
- You don’t need to carry a lot of cash, making it safer from theft.
- Carrying a credit card is convenient, takes up little space, and is easy to store.
Disadvantages of Carrying a Credit Card Abroad
- You may need to spend time calling your financial institution before traveling abroad to ensure your card can be used in the destination country.
- A small credit card can be easily dropped or lost, so it’s advisable to carry a backup card.
- There’s a risk of data hacking at untrustworthy stores.
- Some stores abroad may have a minimum purchase requirement; if you don’t meet it, you cannot pay with the card.
- There are currency exchange fees averaging 2% to 2.5% per transaction.
Commonly used credit cards today include MasterCard, Visa, JCB, or UnionPay, which are mainly used in China. Each card issuer has a website to check daily exchange rates, which you can visit based on the card you hold.
The exchange rate is calculated after you make a purchase with your credit card, as the foreign currency exchange rate is determined on the day the store submits the charge, not the day you made the purchase. However, if the store submits the charge on a holiday in Thailand, it will be processed on the next business day when the bank is open.
How Much Do Different Financial Institutions Charge for Credit Cards?
Each financial institution charges a fee for currency conversion after changing to foreign currency. Let’s see how much each institution charges:
1. Exchange Rate Fee Charged at 2.0%
- Krung Thai Bank Credit Card
- Krungsri First Choice Credit Card
- ICBC Credit Card
2. Exchange Rate Fee Charged at 2.5%
- Bangkok Bank Credit Card
- Kasikorn Bank Credit Card
- Citibank Credit Card
- Central The 1 Credit Card
- Thai Military Bank Credit Card
- Tesco Lotus Credit Card
- Siam Commercial Bank Credit Card
- Thanachart Bank Credit Card
- Bank of China Credit Card
- Krungsri Bank Credit Card
- UOB Credit Card
- Standard Chartered Credit Card
- American Express Credit Card
- Aeon Credit Card
How to Prepare Before Traveling Abroad
1. Research the country you are traveling to: Check the weather, the main spoken and written languages, local cuisine styles, and cultural practices.
2. Create a checklist of essential items for your trip: For example, if you are traveling during hot or cold weather, pack appropriate clothing, and bring any necessary medications. If you know you are prone to allergies, be sure to pack allergy medication as well.
3. Check your health before traveling: Ensure you are fit for the trip. If you are not feeling well, request a medical document from your doctor to present to airport officials.
4. Plan your sightseeing itinerary: Decide which places you want to visit and where you want to try local food, listing them out for each day.
5. Inform your family and friends: Let them know your travel dates and when you will return.
6. Stay updated on news: Keep an eye on news related to the country you are traveling to, such as weather and political situations.
With thorough preparation like this, your trip abroad is sure to go smoothly and be enjoyable. Plus, carrying a credit card adds an extra layer of peace of mind, right? Now, let’s find that dream trip you want to take!
Thanks for the information from rabbitfinance.com
