Most credit cards come with an insurance policy that covers any loss or theft of your credit card abroad, which will be replaced as quickly as possible once you contact your credit card issuer.
When you receive your card, you will also receive a list of telephone numbers (usually toll-free) that you can call in case the card is lost or stolen. Always keep this list in a safe place.
The insurance policy covers all the costs of replacing the card, as well as reimburses all purchases made from the card after being lost or robbed. Please note, however, that each issuer has different insurance programs, and you should definitely make sure that they are covered exactly before traveling abroad.
Be aware that while you do take advantage of the return option in your home country if you buy an item that you are not satisfied with, when traveling abroad you should always check your card first before making any expensive purchases. As you most likely won’t be able to get a refund if there is no agreement between the credit card bank and the service or merchandise provider. Legal systems change from one country to another, and few have a similar client protection program.
When traveling abroad, an important question arises – these are foreign currencies. The exchange rate fluctuates between banks, financial institutions, not even to mention the unofficial exchange offices that can be found on the streets in certain countries. With a credit card, you can always be sure that if you go to an ATM and receive money, you are guaranteed to make a safe transaction with an average exchange rate, thus avoiding fraud.
Be aware, however, that in certain countries the official rate is very different from the market rate, and you may want to consider exchanging currency before traveling abroad or elsewhere if you are already in a foreign country. Always consult with trustworthy people, mainly the hotel and restaurant staff will tell you how things work there.
Beware of commissions
Credit companies traditionally charge additional fees for transactions. There are commissions when purchases are made in a foreign country. However, these fees are generally calculated on a percentage basis and should not exceed approximately 2% of the purchase price.
Before you travel, check with your credit card issuers how much they charge for overseas purchases. Compare the fees and decide which credit card is more profitable for you to use abroad. This way you will save money and enjoy your vacation.