Tips and Tricks to Avoid Travel Money Traps
Envision this – you are on your dream trip to Paris. You are thoroughly enjoying the French fashion and delicacies. However, when you look at the bill every time, you get a setback seeing the high charges. Upon connecting with the bank back home, you realise you are being charged a foreign transaction fee that you never knew of when you signed up for a credit card.
Know For What You Can Get Charged!
Two or more types of charges can be levied - Currency Conversion fee or Foreign Transaction fee.
A foreign transaction fee is charged by the issuer on the transactions that you do abroad or with a foreign merchant. A currency conversion fee, on the other hand, is charged by the payment processor on the very transaction. It is a fee you pay to convert from local currency to foreign currency.
Back to reality! If you do not want this financial nightmare to ruin your dream trip, learn these simple tips to avoid travel-related money traps. Read on to learn more!
Communicate That You Are Travelling!
Besides facing heavy charges, there is also a probability that when you travel abroad, your credit card transactions can get declined. Why? The sudden change in transaction currency. Here’s a thing – if you have been making payments in Dirhams, sudden payments in Euros can draw suspicions for your bank. Hence, transactions get declined.
Thus, make sure that you inform your bank about travelling abroad to avoid such surprises while making payments abroad.
Go Old School - Carry Some Currency in Cash!
Did you know that even withdrawing money from an ATM abroad at times can incur you a foreign transaction fee? Thus, it is often advised that you should carry some currency from your native country before starting your trip. This will reduce the hassle of frequent ATM trips and the resultant foreign transaction fee.
Do It Right from The Start! Get the Right Card!
If you know that you are a globetrotter who plans to travel all the time, the best thing to do is read the terms and conditions line by line before applying for a credit card. It is important to know the foreign transaction fee on the credit card. This saves you from the transaction fee while you spend money abroad or purchase any item from any foreign brand.
Moreover, having a right credit card also saves you from carrying extra cash while also enabling you to make secured and easy payments on your trip. A right credit card saves you from sudden transaction decline and additional fees.
So, make travelling a breeze with the right credit card!
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Written By: Tanvi Pathak
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