The right credit card for traveling

Credit cards make it possible for you to pay abroad and have additional financial flexibility while traveling. They have an especially important role when you are traveling abroad, booking accommodation, renting a car, or incurring unexpected expenses.

In this article you will learn

• when a credit card is useful or necessary while traveling,
• how can you identify a good credit card for traveling and
• how you can avoid fees and pay securely.

A credit card is one of the most important payment methods while traveling, especially abroad. It offers you advantages in many situations that are often not covered by cash or debit cards alone.

Common benefits of using a credit card while traveling:

• worldwide acceptance among hotels, airlines and car rental companies.
• cashless payments in shops, restaurants and online
• option to provide security deposits (for example, in a hotel or when renting a car)
• financial flexibility through staggered account balancing

Especially outside of Europe, a credit card can be useful or necessary in many situations, as debit cards are sometimes not accepted depending on the country, provider, or area of ​​use. For example, renting a car without a credit card is often only possible to a limited extent. 

Anyone looking for the best credit card for traveling should pay less attention to advertising promises and more attention to objective criteria.

The following points apply to a good credit card for traveling:

• low or no foreign currency fees
• worldwide acceptance (for example, Visa or Mastercard) Visa or Mastercard)
• option to provide security deposits
• high security standards when making purchases
• transparent fee structure
• simple blocking and emergency features for when you are abroad

Not every credit card meets all the criteria. For this reason, it is worth taking a close look at the terms and conditions, especially for trips outside the Eurozone.

Additional costs may apply when paying by credit card abroad. A travel-friendly credit card helps you keep these costs as low as possible.

These fees may apply:

• foreign usage fee (foreign currency fee):
  Fees may apply if you make payments outside the Eurozone. Good travel credit cards either do not charge them or are transparent about it if they do.
• Dynamic Currency Conversion (DCC):
  When paying, you will often be asked whether you would like to pay in euros or in the local currency.
  Important to keep mind: Always choose the local currency.
  Otherwise, the conversion to euros is usually done by the dealer at a less favorable exchange rate.
• Fees for cash withdrawals:
  Some banks charge a flat fee for withdrawals abroad.
• ATM operator fees:
  These fees apply regardless of your bank and are often displayed right at the ATM.

Tip: Before you leave on your trip, find out about your credit card's fee structure.

Cash may also be necessary while traveling. Credit cards enable access to local currencies worldwide, without having to carry large amounts of cash.

Advantages:

• Access to international ATM networks
• Quick access to local currency
• More secure than carrying large sums of cash.

It's important to know that Cash withdrawals are often subject to fees, including those charged by the ATM operator.

In terms of security, credit cards offer clear advantages over cash.

Security benefits at a glance:

• option to reverse unauthorized payments (chargeback)
• additional security procedures for online payments
• emergency services such as replacement cards or cash services abroad

Compared to cash, you are significantly better protected with a credit card.

BBVA credit card example:

The BBVA credit card supplements these general security standards with additional technical protection mechanisms as well as a dynamic CVV, which changes regularly. In addition, depending on the individual case and the applicable card rules, there is the option of an extended chargeback procedure for up to 180 days. This makes it especially easy to secure card and online payments, both in everyday life and while traveling.

Many users are specifically looking for a credit card with travel cancellation insurance. However, it is important to make a realistic assessment.

It's important to know that

• Travel insurance policies are not automatically included with a credit card.
• Services vary greatly between providers.
• Insurance policies are often subject to conditions.
  (for example, using the card when purchasing the policy)

For this reason, a credit card is not an automatic replacement for separate travel insurance. This makes transparent information without false promises all the more important.

These tips will help you make the most of your credit card while traveling:

• Activate the card for usage abroad
• Inform your bank about your trip (this prevents your account from being blocked)
• Use the ATMs provided by large banks whenever possible, and always pay in the local currency, not in euros
• Bring a second card or alternative payment method as a backup

A credit card is not a luxury while traveling, but a practical and often necessary payment method. It enables payments throughout the world, offers high security and simplifies many situations, from booking a hotel and renting a car to spontaneous spending abroad.

Combined with a debit card, it gives you flexibility, and you can relax as you enjoy your trip, regardless of where you are going.