Credit card – how to pay safely on holidays?
Go abroad without cash? One day it would be unthinkable! However, more and more Poles use non-cash payment methods. We are happy to pay by credit card during holidays or business trips.
It is not only convenient, practical but also safe. However, it is worth paying attention to the issue of currency conversions and withdrawals from ATMs, for which a commission is charged. So where are the biggest advantages of credit, and where can we face resistance?
Credit card – not just cash for the trip
It would seem that cash during trips abroad is the best option possible. At first glance, it is convenient because it does not require complicated knowledge about modern financial tools and reliable in every situation – during an ATM or banking system failure.
Simply – we’ll pay it everywhere! Exchange office owners and thieves already knew about its advantages. The former imposed high currency spreads, ie the cost of currency conversions, while the others were waiting for unaware tourists with wallets stuffed to the brim. Does it mean that during the holidays we should only use non-cash transactions?
In fact, it’s always a good idea to have an emergency cash supply with you. After all, you never know if the place we are going to has a developed network of non-cash payments, as in Poland.
In addition, cards and ATMs are products that also have defects. It often happens that their foreign operators charge additional costs for payments abroad. However, this does not change the fact that the cards are more comfortable and provide …
Security in every situation!
Security is an unquestionable advantage of a credit card, just like a debit or multi-currency one. In the event of theft or loss, the Act on Electronic Payment Instruments guarantees that we will suffer losses of at most $ 150. Ba – for insurance you do not have to pay any costs.
Transactions abroad. Yes but…
Paying abroad with a credit card is quite a pleasant and uncomplicated solution. In the end, we dispose of cash that belongs to the bank and we can always treat it as an emergency fund. We pay with a loan for many services quickly and conveniently – both for hotel reservations and car rental. In addition, a credit card from a service provider other than a debit card is always good security in case of problems with not supporting a particular payment operator. Let’s remember that despite the popularity of cashless transfers, system failures still occur.
It is also no secret that banks on currency trading gain colossal sums. Therefore, when making a transaction, we must remember the cost of currency conversion. The payment card we use in Poland is kept in dollars. So if we pay for purchases, the amount spent, according to the exchange rate of the Purekeep Bank, will be converted, eg into pounds, dollars, euros or rubles, and only then into dollars. Sometimes, financial entities add an additional commission. And so, handling fees can mean that, despite the undeniable cashless convenience, we pay more, from three to a dozen or so percent more.
Cash withdrawals from an ATM? Is out!
Plastic lovers value the benefits of their safety and convenience. Anyway, as a fire, we should avoid withdrawals from ATMs with credit cards! Well, they are fraught with high currency spreads, which hit the pocket, especially with smaller transactions. Such transfers are sometimes charged with the effect of double currency conversion. It is about commission costs, cash withdrawals of up to several percents and interest on the amount obtained in this way.
Another unfavorable issue is the method of booking transactions. No bank post or settle transactions on the same day. This usually results in a smaller amount on our account when the settlement on the day of conversion occurs at a worse exchange rate.
Which card should you choose?
Experts agree that a bundle of banknotes taken on holiday travels is not a very sensible move. Which does not mean that we should say categorical “no” to traditional cash? It’s worth having different forms of payment – not only paper money but also credit, debit or multi-currency card.
Especially the latter will reduce all costs to a minimum. Because, just like in Poland, the ideal option is the payment with a USD card, so abroad – with a card in local currency or possibly “connected” to pay in many currencies. First, we will avoid currency conversion and, secondly, additional commission costs. However, while reducing expenses in this way, we must watch out for fees related to account or card handling, which sometimes can return with doubled force.
(NOT) secure payments – 6 golden rules!
Blissful, relaxing and full of experiences rest is the dream of every vacationer. Therefore, to surprise us only with positive surprises, we need to keep appropriate security alerts. Here are the most important of them:
- Don’t leave the card out of control!
- When using the card, pay in local currency to get the best rate – eg using currency or multi-currency card,
- Check out the additional benefits – who knows, maybe the bank where you have the account offers additional travel insurance, discounts, rewards or bonus points abroad as part of the account,
- Pay for holiday reservations without cash – in this way you will get a good alternative as part of the chargeback service. If, eg a hotel stay does not meet the points included in the contract,
- After returning to Poland, check your account – be sure to review your credit history and, if possible, report suspicious transactions to the bank as soon as possible.
That holidays do not turn out to be a dark episode
Therefore, for a dream vacation to be pleasantly remembered, let us anticipate the history of troublesome and stressful situations. Before leaving, it’s worth learning a bit about the country in which we will spend pleasant moments.
Let’s check if there are ATMs in the area, in which currency cards are supported and let’s carefully read the messages appearing on the screen. Knowing what awaits us on the spot, it’s easier to decide which payment method will be better for us.