Traveling to a new place can be exhilarating, but also intimidating. You’ve most likely spent a good chunk of change (not to mention time) preparing for your trip, from booking transportation, to activities, to accommodation. After that, you’ll also need to spend a bit more time thinking through how you’ll handle expenses while abroad, and whether to use cash or credit card when traveling.
Carry widely accepted credit cards:-
Visa and Mastercard are worldwide recognised credit cards. A business that accepts credit cards will probably accept your Visa/Mastercard. American Express and RuPay also have a global presence but are not yet as widely accepted. However, both credit card companies are trying to increase their overseas acceptance rates by collaborating with different banks and payment networks. However, it still makes sense to bring a Visa or Mastercard as a backup to avoid any inconvenience in a foreign land.
Certain credit cards offer purchase protection, which can be valuable if you encounter issues with products or services you bought while abroad.
Cash makes you a target :-
Carrying a large amount of cash when traveling abroad isn’t the best idea. Scammers are always looking to rob tourists, and carrying cash makes you a target. Exchanging your dollar into the local currency at a bank also means you are paying a fee. Depending on your bank, you will also pay an additional fee for taking money out of an ATM while in another country.
Security and Fraud Protection:
Credit cards offer robust security features and fraud protection. If your credit card is lost or stolen, you can quickly report it and have the card blocked, preventing unauthorized access to your funds. Additionally, most credit card companies have fraud monitoring systems that can detect suspicious activities and notify you immediately, ensuring your financial safety during your travels.
Carrying cash can be cumbersome and risky, especially in unfamiliar places. With a credit card, you can make purchases without the need to carry large amounts of cash, reducing the chances of theft or loss. Credit cards are widely accepted worldwide, enabling you to shop, dine, and pay for services seamlessly, even in countries with different currencies.
When you use cash abroad, you may encounter challenges with currency conversion, potentially leading to unfavorable exchange rates and fees. Credit cards typically offer competitive exchange rates, which can save you money compared to exchanging cash at local currency exchange offices or airports.
Travel Rewards and Benefits:
Many credit cards offer travel-specific rewards and benefits, such as airline miles, hotel points, and travel insurance. By using your credit card for travel expenses, you can accumulate rewards that can be redeemed for future trips or upgrades, making your travel experiences even more rewarding.
Credit card transactions provide a clear and detailed record of your expenses, which can be beneficial for budgeting and keeping track of your spending during your trip. Having a comprehensive record can also simplify the process of expense reporting or reimbursement if you’re traveling for business purposes.