Safe and Practical Use of Debit and Credit Cards While Traveling Abroad

When we organize trips outside of Chile, we often focus on the most striking aspects such as the itinerary, purchasing tickets and making accommodation reservations. But there is another important element that can make the difference between a smooth trip and one full of worries. We talk about Safe, practical and convenient use of our debit and credit cards while traveling abroad.

Before travelling, It is key to inform the bank about our plans. In most financial institutions you can do this through online banking platforms, the mobile application or by contacting the call center.

Generally, credit cards come enabled for use in another country. However, on certain occasions, issuers end up making preventive or permanent blocks when they suspect possible fraudulent use.

This was the case of Chilean journalist Juan Vallejos, who a few months ago complained against his bank for blocking his card in Spain, despite having used it for several months in that country and having notified his account executive.

Furthermore, you must review the card quota and request an increase if necessary, since usually the quota available in foreign currency (dollars) is less than the national one. This will allow you to avoid running out of resources in the middle of our vacation. If it was not possible to increase the quota, you will have to worry about making small payments throughout your stay abroad.

Not all banks allow you to pay the quota in dollars from the mobile application, so it may be necessary to enter the web version of your online bank.

Check if your credit card offers travel insurance abroad

You can take advantage of the travel insurance or assistance associated with some credit cards. To access this benefit, it is necessary that the type of plastic offers it and that the air tickets have been purchased and paid in full with that means of payment. Cards such as Visa Signature, Visa Infinite, Mastercard Black and some American Express, among others, usually have this service.

In some cases, the benefit is also offered when you used the card to pay boarding fees and taxes when you redeemed miles, points or “award dollars” associated with the same program as your bank’s card.

Don’t have insurance associated with your card? So the ideal is to quote and take out travel insurance that offers medical assistance abroad in case of emergency. They also usually have support in case of lost luggage, return to the country in case of a family situation, repatriation, among other coverage.

In fact, some countries require having a policy or insurance of this type, as is the case of the countries of the Schengen agreement in Europe.

How to put credit and debit cards to good use during your trip?

Once we are at our destination, We must take into account certain security measures. The technology contactless It allows us to make contactless payments.

However, depending on the issuer, after a certain number of consecutive payments abroad in one day you will have to insert your card into the payment terminal (POS).

It is highly recommended travel abroad with two cards and keep one in a safe place once we reach our destination. This way, in case of any setback, we can always have a backup card. You can also carry a prepaid card as a backup, such as those offered by apps like Tenpo or MACH.

Another common suggestion is carry cards of two different brands (for example, a Visa and another Mastercard), since in some countries there may be acceptance difficulties. For example, in several territories American Express cards have higher fees for merchants, so there are merchants that decide not to accept them.

If you wish make transfers from ATMs (ATM) with your debit card, it is possible that your bank or financial institution charges some additional commission for each operation. Additionally, the local bank or interbank network with which the ATM is associated may apply extra charges. These commissions will be reflected in the total amount that you will see in your account.

What to do if your card is stolen or lost during a trip abroad?

Furthermore, it is important to remember that in case of theft or loss of our card, we can block it through our bank’s application or website. You can also contact the assistance service provided by the main card brands to notify:

To have total control over our purchases and expenses, we recommend activate notifications in our bank application. This will allow us to be aware of all the movements that are made with our cards during our trip abroad.

Another aspect to consider is the use of VIP lounges, which are often associated with our credit cards.

Not only do they provide a comfortable space to relax at the airport, but they may also offer additional services that could make our trip easier. Many banks offer this benefit to be used in salons within Chile.

Regarding lounges abroad, this benefit is generally not included, although some cards offer preferential access for values ​​ranging between US$27 and US$35 per person.

What to do when you return?

Most credit cards issued in Chile have two quotas: national and international. If that is your case, Your purchases made in foreign currency will be invoiced at the end of the billing cycle. From then on, you will have 10 to 15 days to make the payment from your financial institution’s website.

If you do not make the payment before the due date, The unpaid balance of purchases with your credit card during your trip abroad will be converted to Chilean pesos. Although it may be comfortable, you must be aware that from that moment Revolving interest will be applied with respect to that unpaid balance.

Some banks allow convert international debt into installments upon our return. To do this, you must contact your entity directly and request this modality. Banks usually consider this transaction as a cash advance, which may be subject to payment of fees and interest.

If the card you traveled abroad with has a single quota, international purchases are converted to Chilean pesos at the time of purchase according to the exchange rate of the day.