The right credit card for travel & vacation.On January 25, 2020 by admin
The Germans are undoubtedly very keen to travel and look forward to their well-deserved annual vacation. “Coming to the door” at least once a year is an absolute must. Regardless of whether you are traveling far away or within Germany, financial matters should be taken into account when planning your trip. It’s not just about saving and “scraping money together” for the vacation, but also about the options of having the right means of payment during the trip.
If you only think of cash and your ec card when traveling, you will quickly have problems, especially abroad. In addition to travelers checks, which we still recommend as an iron reserve, a credit card is absolutely essential.
Credit cards are ideal for traveling abroad
Abroad, German tourists experience again and again that their (so common in Germany) ec card is rarely or not accepted. If you want to pay cashless, you should definitely have at least one credit card with you abroad. This means that hotel bills, rental cars and restaurant visits can be paid for without any problems.
The common credit card variants of Mastercard, Visa and American Express are accepted. Even those who travel to “exotic” countries can at least pay with a credit card and withdraw cash in larger cities.
Many German vacationers already stock up at home with cash in the currency of the travel destination. In principle, you can do that, but for the first time a smaller amount is enough to pay for things like drinks, food, costs for a taxi or public transport.
Under no circumstances is it advisable to travel the world with large amounts of cash – the risk is far too great. It is also not right to take cash with you in USD currency and then exchange it on-site in exchange offices. Vacationers in well-known tourist centers run the risk of being charged fees and unfavorable exchange rates.
You can also get cash abroad with a credit card. The ATM system has established itself worldwide and even in underdeveloped countries you will find an ATM at the airport. The major credit card institutions such as Visa and Mastercard strive to be able to offer their customers a good cash service. Withdraw cash for free? These credit cards make it possible!
Pay attention to fees when using credit cards
If you travel within Germany or in countries with the USD, you do not have to worry about cashless payments by credit card – they are always free so far.
However, if you are in another country where the national currency is different from the USD, you have to pay a fee to the card company each time you use a credit card. This is the so-called foreign fee, which is due in the amount of 1.00% to 2.00% based on the invoice amount.
Since this fee is moderate for most credit cards, you do not necessarily have to choose a credit card according to how high the foreign transaction fee is. It is only sensible to pay more attention to the amount of the international fee if you use the card intensively and travel frequently to countries with other currencies.
The fees for withdrawing cash are much more interesting. All variants are possible here: There are credit cards such as the Visa credit card with which you can withdraw cash anywhere in the world free of charge. There are also cards with which you can get free cash, at least in USD countries, and cards that, in addition to a hefty cash fee, also charge the foreign fee in non-USD countries.
Travel several times a year?
If you travel abroad more than twice a year, you can even think about a higher-quality credit card. There are also special gold credit cards, which already include important insurance in the credit card contract. This can often save the cost of separate travel insurance.
One mistake is that you are only insured if you book the trip with a credit card. You can also travel “on your own” and are still covered with travel health insurance, for example. You cannot book a car trip abroad with a credit card.
Compare credit cards with travel insurance now!
How secure are credit cards on vacation and when traveling?
Basically, credit cards are safer than cash: If a credit card is stolen, have the card blocked immediately and be liable – if you have not acted with gross negligence – with a maximum of 150 USD.
Many banks have even reduced this low liability limit to 50 USD or even completely abolished it. Keep in mind: Your cash would be completely lost in the event of theft without a replacement – with a credit card, you are only liable with a small excess and the rest will be refunded.
Because the credit card is also gone in the event of theft, you can even get a replacement card delivered to your holiday destination for higher quality credit cards. You should also consider purchasing a second credit card straight away. In any case, the spouse / life partner should also have a credit card (or partner card) in order to continue enjoying the holiday.
A call to the blocking hotline is sufficient to block the credit card. We have put together the numbers for the credit card block. Your bank will also inform you and, as far as is customary, the blocked numbers are also shown on the back of your credit card.
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