With summer right around the corner, we thought it would be the perfect time to revisit some common credit card issues that come up during travel. While your mind may be on soaking up the sun on the beaches in the Bahamas, it’s important not to let these issues creep up and potentially ruin your vacation.
Your Credit Card is Stolen
There’s no easier way to ruin a vacation than a stolen credit card. Whether you’re mugged or pickpocketed, a stolen credit card can turn a dream vacation into a nightmare. Before you know it, the thieves can rack hundreds of dollars’ worth of charges on your credit card. To avoid falling victim to thieves, avoid dressing and acting like a tourist. Avoid walking around with a map in hand wearing a souvenir t-shirt. It’s a good idea to have your bank and credit card company phone numbers separate from your cards. If your wallet or purse is stolen, you’ll be able to cancel the cards quicker by having the bank’s contact information on hand.
Not Cashing in Your Travel Rewards
You’ve worked hard to accumulate travel rewards points, but when it comes to redeeming those points it can seem like a hassle. With blackout dates and confusing terms, some cardholders face a lot of red tape when redeeming for a trip. If you plan to redeem points, don’t wait until the last minute. Plan ahead of time and make sure your airfare and/or hotel is available. Some travel rewards points will expire if not used, so make sure you take advantage of the points or miles you have earned!
Forgetting to Tell Your Credit Card Issuer You’re Travelling
You book vacation time off at work, drop Fido off at the kennel, ask your neighbour to collect your mail, but you forget the crucial step of letting your credit card issuer know you’re travelling – big mistake! Not telling your credit card issuer about your travel plans can lead to your card being denied after the first transaction. Although your issuer is trying to protect you, it can lead to big headaches. That’s why it’s important to phone your issuer ahead of time and let them know when and where you’re travelling.
Your Credit Card is Denied
If you’re travelling to Europe, you can be in for a rude awakening if you try to use your credit card. Many retailers will only accept credit cards with Chip-and-PIN technology. If you’re still using an old fashioned credit card with a magnetic strip, be prepared to be denied. If you haven’t made the switch over to Chip-and-PIN, make sure you do so before travelling overseas. It also doesn’t hurt to bring a backup credit card in case your primary credit card is turned down.
You’re Charged Costly Foreign Exchange Fees
When travelling abroad you have the choice of paying in your home currency (Canadian dollars) or the foreign currency. Before travelling, it’s a good idea to review your credit card agreement to find how costly foreign exchange fees are. When paying in Canadian dollars, you face the risk of merchants gouging you with costly fees; that’s why you’re better off most of the time paying in foreign currency. Most credit card issuers charge 2.5 percent for foreign currency conversion. Find out how much your bank charges. Some credit cards don’t charge any foreign exchange fees at all; if you travel frequently, consider signing up for one of these cards.
