People still travel throughout the world anytime of the year whether for business, to see family or relatives, for special holidays and vacations. People have found traveling with little cash is not only convenient but traveling with credit cards gives a complete expense report. There are good points to emphasis as well as bad when using credit cards while traveling in the twenty-first century and in the future.
Credit Cards Are a Needed Traveling Buddy
In our technological world there are so many of us tend to be on the go in our daily lives. People use more plastic forms as a way for paying for things than cash. So it would make logical sense why traveling agencies, hotels or motels, airline companies and tourism packages require a credit card. The good points of traveling with credit cards are below.
- A necessity for making online or by phone reservations.
- A hard copy of expenses spent while traveling.
- Financial institutions offer a debit card that can be used as credit to withdrawal cash from ATM’s. However, if the card is not from that financial organization that you are using the ATM to receive cash. There are fees to use their ATM’s for any transactions. The fees may cost the person anywhere from a dollar and fifty cents to more than five dollars. A reminder to using ATM’s many banking organizations will only allow a given amount to be withdrawal each day.
- Many of the credit cards have a rewards program. If you use the card for purchasing a specific item the customer receives a given amount in cash back into their account. The program may also give you points which may be used as a way to discount or give the customers a place to choose something they might want from an online catalog.
- Major credit card companies provide their customers with a hotline for fraudulent or stolen cards to help protect the customer and the companies well being. They have in place an alert system which red flags the card usually with a 24 hour to 48 hour time frame. This prevents anymore spending on the card until the card holder is contacted and a quick investigation of the expenditures is done by the company.
- When traveling many credit cards now offer insurance with a travel package is bought. An example of a package would include hotel, air fare and car rental.
- Credit cards may also offer some kind of foreign exchange that in most cases very reasonable
Consumers Beware of Bad Things That Can Happen!
Unfortunately with many things there can be a downside with using credit cards especially while traveling locally or abroad. The bad or unfortunate is that we live in a technological society and identity theft statistics on an average has cost consumers billions of dollars each year. Although there are companies that try to keep personal and financial information secured. Consumers still need to be aware that if they use any electronic device the possibility of identity theft is a high probability to happen at least once in their lifetime. There are steps to take and learn to manage for consumers to do so that when traveling with credit cards can be uneventful. These steps are for information and to help them manage credit card spending. This is the bad part of having one or more credit cards especially while traveling.
- Small businesses or family owned stores may charge at least 10 % or more if a consumer uses a credit card. This charge is to help the cost of the store to have the credit card service and necessary machine to rent. The store may also use this if the consumer does not spend a given amount. When this happens it is sometimes best to use a debt card or cash in purchasing the item.
- The credit card maybe blocked or flagged if it has exceeded the amount allowed or does to identity theft.
- Credit Card Company’s offer many incentives if you apply for their card. This is where consumers end up with financial troubles. They do not read the fine print of the credit card or are not aware of the interest rates charged when the balance is not paid completely each month. Credit cards on the average charge anywhere from 18.5% APR or higher. Check to see if the credit card with your financial institution has a lower APR if you apply for a credit card through them.
- At all cost avoid getting any cash advances from the credit card. This can become a financial mistake for the traveler at the end of their trip.
- People who business travel for a company or own their business should check all statements while traveling with credit cards. This should be done if possible on a weekly basis to see if there are unwanted charges on their statement.
- Currency conversions for travel abroad may be done but can be expense due to a charge fee of the conversions and other hidden fees.
- It is a good idea to check the expiration date but if the credit card is not used frequently then the possibility of having it deactivated is a possibility.