This is connected with the necessity of counting with every penny – and this is not a vacation to worry about how much money we have in our wallet and whether we will have enough for the rest of the holiday. Secondly, if you steal your wallet, you will lose all our money. We have no chance to recover them, unlike the situation when we use a card that we can quickly reserve.
A debit card attached to the invoice – is it worth paying with it abroad?
Paying abroad using a debit card issued to our account kept in USD is a very easy and pleasant solution. The same as in the country we pay by entering the card and entering the PIN. The problem, however, is much higher costs.
When using a debit card in USD and paying for products in a country where the currency is e.g. dollar, we have to take into account the costs of currency conversion. Bank exchange rates are usually slightly higher than those found in exchange offices. However, this is not the worst part.
If we decide to use an ATM, we must not only remember about currency conversion but also about the commission for withdrawals from an ATM abroad. It is usually a fee of around USD 10, but it can often be more if there is a record that the commission is e.g. 5%, but not less than USD 10. Fortunately, there are several offers on the market for which we will not incur fees for withdrawals from ATMs abroad.
When it comes to currency conversion, you need to know that there may be a double currency effect during the trip. We will meet with him if we remain in a country whose currency our bank does not settle. Then, after the transaction, the bank will first convert its value at the exchange rate of the card issuer (MasterCard, Visa) into dollars or dollars (settlement currency), and only then into dollars.
Another downside when paying by card abroad is the issue of booking transactions. Virtually no bank posts or settle transactions on the same day. This may involve an additional burden if the settlement occurs on the day the currency has a worse exchange rate for us. The result will be a smaller amount on our account.
A definite plus of using the card abroad is the security of this agent. If you lose your card, you can quickly and easily report your loss. The Act on electronic payment instruments guarantees that in the event of unauthorized transactions we will be liable only for losses up to USD 150. If you have insurance, you won’t pay even 150 dollars.
Unfortunately, the express issuance of a new card abroad is not always possible. If such an option already exists, then it is expensive. This also applies to credit cards.
Credit card and foreign payments
The credit card has almost the same disadvantages as the debit card attached to the invoice. What makes it different in this respect are the higher fees for using an ATM.
However, there are many advantages to a credit card. First of all, it is not our money, from the account, but from the bank – we can treat it as emergency cash or spread the cost of travel over time.
Secondly, thanks to the credit card we can pay for many services, such as ticket booking or car rental. Thirdly, if we have in our portfolio a credit card from a supplier other than our debit card, then we will protect ourselves against potential problems related to not supporting a given payment organization. Despite progress and globalization, this still happens sometimes.
What is the best way to pay abroad?
The answer to this question is simple – all. By diversifying our payment methods and using each of them skillfully at the right time, we will reduce additional costs to a minimum. When traveling to a foreign country, we can not be afraid of using debit and credit cards, but we can not say a strong no to traditional cash, it simply does not pay off.