Everything you need to know about credit card payments abroad
January 6, 2020
Paying with a card abroad is a matter of course today, but many people still worry about it. What to pay attention to when paying by card abroad?
Pay abroad by card or prefer cash?
Before traveling abroad, whether on a dream vacation or on a business trip, you will probably wonder if you need to exchange cash at all, or you can safely go without it. Every time you find yourself in stress somewhere between packing your bags and arranging travel insurance, keep in mind that you can use your credit card exactly the same way you do at home. In addition, card payments are much safer – if you lose your card abroad, it can be blocked immediately, but you won’t be able to solve the loss of cash anymore. Having at least a small amount with you is always useful, but carrying a bundle of money with you is not worth it from a practical or security point of view.
You can pay by card almost everywhere in the EU
It depends very much on your destination, but at least in most European Union countries you can pay with your Visa or Mastercard anywhere. In major cities such as London, Paris, Berlin or Barcelona, you can pay by card at almost every corner. Likewise, in holiday resorts or hotels are ready for cashless payments. In smaller towns or villages the card cannot be paid everywhere and it is good to count on it. Especially in smaller shops, stalls or marketplaces you will appreciate cash, for which you can buy all sorts of small things and souvenirs. However, we recommend that you do a little research in advance to find out what the situation is about payment terminals and ATMs and their coverage.
Payment by card abroad and fees
You still have to pay for foreign card transactions today. With MONEYPA Money Bank, you can pay and withdraw cash from ATMs abroad free of charge with your TOM account. So if you do not manage to exchange cash before traveling, you can withdraw it on the spot.
How does currency conversion and exchange rate work?
The exchange rate depends on the currency in which you are conducting the transaction. Foreign transactions in EUR or USD are converted at the foreign exchange rate. by selling the settlement currency (EUR / USD). These vary from bank to bank. For transactions other than EUR or USD, the amount is first converted by the relevant international association and the exchange rate into the clearing currency. On your bank statement, you will see the amounts in both Czech and original currency, including the exchange rate, for all transactions. It is therefore worthwhile to follow the exchange rate list before traveling abroad, so that you can take advantage of the situation and exchange at least some cash in advance.
Beware of dynamic conversion
If there is something to look out for when paying with a card abroad, then it is Dynamic Currency Conversion (DCC). At first glance, this is a relatively convenient service, which should make it easier for you to make transactions abroad, as it allows you to choose the currency of billing directly at the terminal. In practice, it seems that, for example, at a gas station in Germany or Croatia, the trader will offer you to carry out the transaction in Czech crowns. Instead of converting the currency, you can see how much money is deducted from your account, but you can no longer see the rate itself. As you can see, the appearances are deceiving,This is determined by the terminal operator itself, so it is also less advantageous than the bank rate that you would normally choose.
What to do if you lose your card
If your card is stolen or lost, it will contact your bank immediately. But you should also know how to prevent card abuse.
Your trip abroad is coming soon and would you like to get the best exchange rate? Take advantage of our online currency exchange, which offers the best exchange rates in EUR and USD within the banking market, in real time and completely free of charge. As soon as you open a foreign currency account with your USD account, the service is activated automatically in your Smartlite Bank. You then transfer money between these accounts for the exchange rate that is most convenient for you at the moment, without having to go to the exchange office or branch. You can open a foreign currency account either in Smartlite Bank by opening the Foreign Exchange and arranging your account online, or we will be happy to help you set up your account at any of our branches.