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Travelling abroad? Tell your credit card issuer

By Joanne Grey

You've arrived at your overseas holiday destination and decide to use your credit card for a bit of "retail therapy," but the transaction is declined. You know you have enough available credit, so what's the problem?

It could be a few things, but here are the most likely suspects:

When a hotel or car rental company takes an imprint of your credit card, this sometimes blocks the funds and reduces the amount of available credit, even if no funds are actually removed from your credit card account. Or your bank has refused the transaction in an effort to reduce overseas credit card theft and identity fraud.

Other than the embarrassment of having your credit card transaction declined overseas, you might end up without funds unless you take some precautions. Visa recommends you do the following before your trip:

  1. Tell your bank you're going overseas. Be sure to include the destination countries and the length of time you expect to be away in your communications with your bank.
  2. Ask your bank what fees are payable for overseas credit card transactions.
  3. Check if there are any restrictions and confirm the daily overseas withdrawal limits.
  4. Memorise your credit card PIN for overseas ATM withdrawals.
  5. Keep a record of your credit card number and telephone numbers for reporting lost or stolen cards. Do not store this information in your wallet or handbag. Both Visa and MasterCard, have emergency telephone numbers and Web sites that you can access for 24-hour assistance when you are overseas.
  6. If you are going to be overseas for a long time, pay your credit card balance to avoid heavy late fees.
Using credit cards overseas is often cheaper and easier than any other method of payment. The currency conversion fee you pay each time you use your credit card is less than converting travellers' cheques. You also decrease the risk of theft and loss by not carrying large quantities of cash with you when you are travelling overseas.

You also can use your credit card to draw cash from ATMs in over 200 countries (provided your card is linked to the PLUS or Cirrus network). If you are planning to use ATMs, it is even more important to tell your bank you are travelling overseas, as international ATM activity can trigger a fraud alert, and may even freeze your bank account.

With a little forward planning, you can ensure that you will enjoy your trip. Bon voyage.

Article by Joanne Grey

Published: August 7, 2009

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