October 4, 2007

Can you use your credit card overseas?

Credit cards a boon to travellers because they can help manage expenses and are convenient to use. However, before you too heavily on your cards, ask yourself two questions:

Are credit cards widely accepted at my destination?

Some countries are “cash economies”, meaning that credit and debit cards are not widely used or accepted. You’ll have to opt for another form of payment if you aren’t staying at a resort. Make sure you know where and how to get money in an emergency.

Looking for more information? Try the government travel advice for your destinations – the advice covers money and currency.

Will foreign merchants accept my card with/without a “chip and pin?”

Many countries throughout Europe have moved to a more secure “chip and pin” system for credit card purchases. However, if your financial institution or destination isn’t following suit, you might find your credit card is denied. Check with your credit card company about its international policies.

Want to know more about the problem? Take a look at a recent article on news.com.au called “Chips are down on magnetic strips”.

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