How do you protect your credit card overseas?

How do you protect your credit card overseas?

Australians love to travel. According to the Australian Bureau of Statistics, our overall number of international border crossings reached 33.9 million in the year to June 2015. Only 10 years earlier, this figure was a mere 20.7 million. We now have at least 1.4 international border crossings per person every year.

With so much activity, it’s important that Australians keep their money safe at all times. The Australian Payments Clearing Association (APCA) notes that between July 2010 and 2012 alone, card fraud domestically and overseas cost people $262 million. Getting the right protection for your card when heading overseas is a must. 

Take out the right insurance

If you are taking out a credit card for overseas spending, travel insurance could be a prudent option. The cost of this is regularly included in the fees you pay on a credit card, and can offer cover in a variety of situations. This can include card replacement fees, as well as the cost of fraudulent transactions made on your card. 

This insurance can be labelled as free, but could form part of regular fees. It is well worth using a credit card comparison tool to determine how much you pay for insurance, what kind of protection is on offer, as well as the cards that offer some of the top deals for overseas spending

Work out your liability

In the event that your credit card is stolen or fraudulently used overseas, it is important to know what you are liable for. In most cases you will be covered for all such expenditure, but there are some times that you may be liable.

This includes if you disclosed your PIN number to others, or waited for an unreasonable amount of time before alerting the relevant authorities about the card theft, transaction or disclosure of your PIN. 

Be careful with ATMs

While many credit cards will be usable at a wide range of ATMs across the globe, this doesn’t mean that every machine will work with your card, or even be legitimate. It’s important to look at the list of lenders and ATMs that your credit card will function with. Don’t forget to check the credit card fees for cash withdrawals as well. 

If you accidentally leave your credit card inside an ATM, you may still be liable for any fraudulent transactions that occur. Keep a sharp eye on where your card is at all times. 

Have a backup

The Australian Crime Commission notes that between July 2010 and July 2012, it wasn’t just the value of card fraud that went up, the volume of transactions increased by 26 percent during this period as well. Losing a credit card is one way this can happen, and it can be difficult to get a replacement on short notice while overseas.

This is where a backup card can be useful. Many credit cards have the option to take out a second card joined to the same account, although there may be fees attached. This is something to consider if travelling overseas. 

Shop smart

Just as there is a set of ATMs that a credit card may be compatible with, there are certain stores that welcome particular credit cards. If you have eschewed the savings account in favour of a credit card for your overseas travel, looking at the retailers from which you can obtain credit card rewards may be a starting point for picking safe spaces in which to shop.

Credit card skimming, PIN acquisition, account takeover, phishing and theft are all dangerous elements to be aware of when travelling. Use our credit card comparison tool to determine what kind of protection you can acquire for your card, and be mindful of the risks when travelling. 

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Learn more about credit cards

What should you do when you lose your credit card?

Losing your credit card is a serious situation, and could land you in financial trouble. Here is a simple guide detailing what to do when you lose your credit card.

Lock you card – Contact your provider and inform them about your lost credit card. From here lock, block or cancel your card.

Keep track of transactions – Look out for unauthorised credit card transactions. Most banks protect against fraudulent transactions.

Address recurring charges – If your card is linked to recurring charges (gym membership, rent, utilities), contact those businesses.

Check credit rate – To ensure you’re not the victim of identity theft, check your credit rating a month or two after you lose your credit card.

What should you do if your credit card is compromised?

Credit card fraud is a serious problem. If your credit card is compromised and you’re wondering what to do, here are a few precautionary steps to take.

Contact you credit provider – Get in touch will your credit card provider. If you feel your card has been compromised, you should be able to lock or block it.

Monitor your accounts – Keep an eye on your credit card accounts. Any unauthorised transactions could be a sign your credit card has been compromised.

Check your credit rating – It’s also important to check your credit rating, to ensure you’re not a victim of identity theft or some other financial mischief.

Should I get a credit card?

Once you've compared credit card interest rates and deals and found the right card for you, the actual process of getting a credit card is quite straightforward. You can apply for a credit card online, over the phone or in person at a bank branch. 

How to get a credit card for the first time

A credit card can be a useful financial tool, provided you understand the risks and can meet repayment obligations.

If you’re a credit card first-timer, review your options. Think about what kind of credit card would suit your lifestyle, and compare providers by fees, perks and repayments.

Once you’ve selected a card, it’s time to apply. Credit card applications can generally be completed in store, online or over the phone.

When you apply for a credit card for the first time, you must meet age, residency and income requirements. As proof, you must also provide documentation such as bank account statements.

How to pay a credit card

There are a few ways to pay a credit card bill. These include:

  • BPAY - allows you to safely make credit card payments online.
  • Direct debits - set up an automatic payment from your bank account to pay your credit card bill each month. You can choose how much you want to pay of your credit card bill when you set up the auto payments.
  • In a branch.
  • Via your credit card provider's app.

How do you use credit cards?

A credit card can be an easy way to make purchases online, in person or over the phone. When used properly, a credit card can even help you manage your cash flow. But before applying for a credit card, it’s good to know how they work. A credit card is essentially a personal line of credit which lets you buy things and pay for them later. As a card holder, you’ll be given a credit limit and (potentially) charged interest on the money the bank lends you. At the end of each billing period, the bank will send you a statement which shows your outstanding balance and the minimum amount you need to pay back. If you don’t pay back the full balance amount, the bank will begin charging you interest.

How do you apply for a credit card?

You can apply for a credit card online, over the phone or in person at the bank. Once you’ve compared the current credit card offers, the application process is quick and easy. Before you get your application started, you’ll need to gather your personal information like proof of ID, payslips and bank statements, proof of employment and details of your income, assets and liabilities. To be eligible for a credit card, you’ll need to be an Australian citizen over 18 and earn a minimum of $15,000 each year. Once you’ve applied for a credit card, you should get a response fairly instantly. If your credit card application has been approved, you should receive a welcome pack with your new credit card within 10-15 days.

How easy is it to get a credit card?

For most Australians, there are no great barriers to applying for and getting approved for a credit card. Here are some points that a lender will consider when assessing your credit card application.

Credit score: A bad credit score is not the be all and end all of your application, but it may stop you being approved for a higher credit limit. If your credit score is less than perfect, apply for the credit limit that you need, rather than the one you want.

Annual income: Most credit cards have minimum annual income requirements. Make sure you’re applying for a card where you meet the minimum.

Age & residency: You need to be at least 18 years old to apply for a credit card in Australia, and most require that you are an Australian citizen or permanent resident. However, there are some credit cards available to temporary residents.

How do you use a credit card?

Credit cards are a quick and convenient way to pay for items in store, online or over the phone. You can use a credit card as a cashless way to pay for goods or services, both locally and overseas. You can also use a credit card to make a cash advance, which gives you the flexibility to withdraw cash from your credit card account. Because a credit card uses the bank’s funds instead of your own, you will be charged interest on the money you spend – unless you pay off the entire debt within the interest-free period. If you pay the minimum monthly repayment, you will be charged interest. There are many different credit card options on the market, all offering different interest rates and reward options.

How do you cancel a credit card?

It’s important to cancel your old cards to avoid any additional fees. Unless you’re doing a balance transfer, you’ll need to pay the outstanding balance before you cancel your credit card. If you’ve opted for a card with reward points, make sure you redeem or transfer the points before you close your account. To avoid any bounced payments and save yourself an admin headache, redirect all your direct debits to a new card or account. Once you’ve done all the preparation, call your bank or credit card provider to get the cancellation underway. Once you receive a confirmation letter, destroy your card and make sure the numbers aren’t legible.

Can a pensioner get a credit card?

It is possible to get a credit card as a pensioner. There are some factors to keep in mind, including:

  • Annual income. Look for credit cards with minimum annual income requirements you can meet. 
  • Annual fees. If high fees are a concern for you, opt for a card with a low or $0 annual fee. 
  • Interest rate. Make sure you won’t have any nasty surprises on your credit card bill. Compare cards with a low interest rates to minimise risk.

What is a balance transfer credit card?

A balance transfer credit card lets you transfer your debt balance from one credit card to another. A balance transfer credit card generally has a 0 per cent interest rate for a set period of time. When you roll your debt balance over to a new credit card, you’ll be able to take advantage of the interest-free period to pay your credit card debt off faster without accruing additional interest charges. If your application is approved, the provider will pay out your old credit card and transfer your debt balance over to the new card. 

How do I apply for a credit card online?

How many numbers are on a credit card?

The numbers on your credit card actually follow a universal standard which is used to identify specific functions. Each credit card has a different amount of numbers. Visa and Mastercard have 16, American Express has 15 and Diner’s Club has 14. 

The first number on a credit card always identifies what type of credit card it is. Visa cards start with a 4, whereas Mastercard starts with a 5 and American Express with a 3. The remainder of the digits represent the account number, including the last number which is used to verify that your credit card is actually valid. 

Credit cards also have additional verification numbers, which are mainly used when the card isn’t present for phone and online purchases. These are the three-digit numbers on the back of Visa and MasterCard or the four-digit numbers on the front of an American Express card.