Is it safer to use a credit card or debit card abroad?
Unlike cash, credit cards provide fraud protection. For starters, most international merchants require EMV chip cards, which are automatically more secure than their magstripe counterparts. Though many card-issuing banks also provide liability coverage and the ability to cancel your card if it's stolen.
Finally, when traveling internationally, credit cards often provide competitive exchange rates compared to currency exchange kiosks. This can result in cost savings and more accurate budgeting. Unfortunately, credit card use does have some downsides for vacationers.
"If the debit card isn't charged a processing fee, it would be a better choice." Also, you may want to consider using a debit card rather than a credit card when making an international purchase if you have a credit card that charges foreign transaction fees.
Travel cards offer several advantages that a credit card can't compete with, including the ability to load multiple foreign currencies, secure PIN protection, locked-in exchange rates, no foreign transaction fees, online account management, and the option for emergency assistance.
While there may be a few credit unions that issue debit cards limited to domestic use, most debit cards are backed by Visa or Mastercard, trusted financial brands that are accepted worldwide.
Whether you should use a debit card for travel depends on your own circ*mstances. For instance, you should avoid using a debit card in another country if you'll be hit with high foreign transaction fees and ATM fees.
There may be additional charges from cash machines or banks when you withdraw money abroad or in a foreign currency. Check before you make the transaction.
- A Debit Card May Be Best If…
- You want to improve money management habits. ...
- You want access to cash. ...
- A Credit Card May Be Best If…
- You make a big purchase. ...
- You shop online. ...
- You book a hotel or rental car.
Check with the merchant if to confirm if you'll be charged an international transaction fee. The best way to avoid the international transaction fee is to look for debit and credit cards that allow you to shop overseas without being charged international fees.
- SBI Elite Credit Card. ...
- IDFC First Wealth Credit Card. ...
- HDFC Diners Club Privilege Credit Card. ...
- RBL World Safari Credit Card. ...
- AU Bank Zenith+ Credit Card. ...
- InterMiles HDFC Bank Signature Credit Card.
What is the best card to use while abroad?
- Chase current account. Best debit card to use abroad. ...
- First Direct current account. A Times Money Mentor award-winning current account. ...
- Starling Bank current account. Another good travel debit card. ...
- Wise. Another good option for people looking for a prepaid travel card.
- Bankwest – Easy Transaction Account.
- Great Southern Bank – Everyday Edge Account.
- HSBC – EverydayGlobal Account.
- ING – Orange Everyday.
- Macquarie Bank – Transaction Account.
- ME – SpendME Transaction Account.
- Suncorp Bank – Carbon Insights Account.
![Is it safer to use a credit card or debit card abroad? (2024)](https://i.ytimg.com/vi/i_F2MdFuGl0/hq720.jpg?sqp=-oaymwEcCNAFEJQDSFXyq4qpAw4IARUAAIhCGAFwAcABBg==&rs=AOn4CLDfJA2oe0R8A1xc5yqF1QvBUG4y4Q)
Credit card transaction fees are typically higher than debit cards. Shops may charge a fee, and banks may charge a conversion fee for the payment. If the merchant hasn't displayed fee notices, travelers should inquire with the staff. Credit cards may be subject to ghost charges or temporary holds.
European travelers should always have some cash on hand; getting it from an ATM abroad is usually the easiest, most advantageous way. If you need cash from an ATM, it's usually better to use a debit card, because credit cards often charge a high interest rate for a cash advance.
Tip: A credit card may be your best choice for big purchases such as plane tickets, accommodation, transportation, car rentals and pricier meals so you have a record of larger transactions when you get home.
- The Balkans. Albania. Bosnia & Herzegovina. Bulgaria. Kosovo. Macedonia, The former Yugoslav Republic of. Moldova. Romania. Serbia & Montenegro. Slovenia.
- Belarus.
- Burma/Myanmar.
- Central African Republic.
- Cote d'Ivoire (Ivory Coast)
- Cuba.
- Democratic Republic of the Congo.
- Iran.
Credit Card, Pre-paid Credit Card, and Gift Card
Credit cards are often considered one of the safest ways to travel with currency. When traveling, it's a good practice to carry more than one of each these three options.
Where is the best place to keep your passport and money while traveling? It's a good idea to get a money belt that is inconspicuous and stores money and other documents close to your body. You should also make a copy of your passport to store at your hotel, along with any extra cash.
These fees can be avoided by choosing a bank account that doesn't charge fees and reimburses out-of-network ATM fees and by always withdrawing local currency from ATMs. Account holders can also ask their home bank if there are partner branches or in-network ATMs in the destination country or countries.
Starling Bank
Starling doesn't charge for using your debit card while abroad. Even better, it uses Mastercard's exchange rate and doesn't add anything on top.
What are 5 disadvantages of debit cards?
- They have limited fraud protection. ...
- Your spending limit depends on your checking account balance. ...
- They may cause overdraft fees. ...
- They don't build your credit score.
Credit cards often offer better fraud protection
With a credit card, you're typically responsible for up to $50 of unauthorized transactions or $0 if you report the loss before the credit card is used. You could be liable for much more for unauthorized transactions on your debit card.
- Rent or Mortgage Payments. Paying your rent or mortgage with a credit card isn't always an option—landlords tend to prefer checks, cash or even Venmo payments. ...
- Utilities. ...
- Income Taxes. ...
- Medical Bills. ...
- Cash Withdrawals. ...
- Peer-to-Peer (P2P) Payments. ...
- Online Bets. ...
- Tuition.
It's worth noting that, should things go wrong with something you buy overseas, credit cards offer stronger protection than debit cards – credit cards give Section 75 protection, whereas debit cards give the lesser, but still useful, chargeback protection.
Spending abroad using your debit card linked to a Travel account or a packaged bank account could be a good option. We can also get you some travel money before you go for your trip. If you are looking to spend fee-free* on purchases anywhere in the world - a packaged account might suit you.