Taking your credit card abroad this summer?

Taking your credit card abroad this summer?

Statistically if you ask holiday makers "what's the thing you most dread leaving behind when you leave to go on holiday" they'll say "their credit card". Surely it should be their passports?

Credit cards have become our favoured travelling companions, but it's important to understand the advantages and disadvantages of using your credit card abroad. It used to be that the most cost affective way of paying for goods and services when travelling was to use your credit card. Now if you compare credit cards costs to that of say traveller's cheques, the sums aren't quite the same.

Obviously when you book your holiday, paying with your credit card gives you the invaluable advantage of purchase protection if your airline or holiday company fails before you travel.

But not many people know that all your purchases abroad are also covered in the same way, including hotel bookings if you've organised your holiday yourself and paid with your credit card. Section 75 of the Consumer Credit Act 1974 makes your card issuer jointly liable with the company you're buying goods or services from if something goes wrong with the transaction (for amounts between 100 and 30,000).

This means you can claim the value of a purchase from your credit card issuer, not just the amount you paid on your credit card i.e. if you paid part of the costs or a deposit.

In the past credit card companies have challenged whether Section 75 applies to purchases made overseas. In order to clear up the confusion The UK Office of Fair Trading went to the High Court to resolve the matter. It initially lost the case, but won on appeal, in 2006. This means that foreign transactions on your credit card are covered in the same way as UK ones.

But as ever, nothings for nothing, and the price we're all paying for that now is the painful 2.5% to 3% levy the credit card companies are charging us to use our cards abroad. This added to the ubiquitous 2% to 3% we get charged to draw money from the cash-points abroad, means that you can end up paying a 6% penalty for spending your own money abroad using your credit card.

But credit cards are so convenient, and of course safe. If someone steals your card and misuses it, you probably won't be liable, so what can we do about the charges?

Well, as ever there are always credit card companies launching new products into the market, and some of them this summer are offering to process those foreign transactions for you for free, meaning you can use a credit card abroad with no real cost penalty. Compare credit cards with zero or reduced charges for using them abroad; there are prepaid and ordinary credit cards available.

Here's more detail on Using Your Credit Card Abroad including a comprehensive download from the UK Cards Association giving your helpful advice.

POST COMMENT

Graco SnugRider Infant Car Seat Stroller Frame Is A Lightweight Option To Travel Systems! New Phone Shop: Best And Affordable Way To Shop Same Day Cash Loans: Affordable Funds For Temporary Needs Vibgyor Persona Comes With 110 And 200cc Engines Into Market Next. Exam1pass St0-097 Exam Testing Engine What Is The Best And Easiest Ways To Update Usb Drivers Experience the world of affordable home shopping with Additions Direct Free Delivery The Most You Want To Know About How To Update Chipset Drivers Road Cycling Helmets for a Good Biking Experience Personalizing a Computer Desktop: Free Cars Wallpapers and More Send Exciting, Unique, Affordable, Quality And Beautiful Rakhi Gifts To India Get Hair replacement in India with a vacation package at discount rates Search Engine Optimization strategies for 2011