Credit cards are a mandatory item for any AUIP program. They are invaluable in emergencies, for cash advances (although there are usually high interest charges for cash advances) and you will often need them for checking into hotels and for buying things online (like a new airline ticket as you won’t want to leave the South Pacific!) Most major credit cards are honoured overseas (i.e., American Express, MasterCard or Visa), but there are exceptions. In particular, American Express is now not accepted at a number of smaller retail and hospitality outlets. When you use a credit card, the company makes the exchange rate calculation for you, reflecting the exchange rate on the day your credit card transaction is processed. This amount may be more or less than what you thought you were paying at the time of your purchase. You will be billed in U.S. dollars on your statement, and sometimes you will see the foreign exchange conversion listed as well.

We found some great tips about using a credit card abroad that was put together by Melibee Global:

1) Read the credit card agreement: Something most people oversee, so have no idea what policies apply to using your card abroad. The agreement will cover transaction fees, late fees, APR (annual percentage rate), credit limits and more. You should also visit your local bank in plenty of time before leaving to find out if you can use your credit card abroad and if there are associated fees.

2) Have a plan for when you will and won’t use the credit card: Will it be for emergencies only? Will it be for specific purchases such as souvenirs or hotels? Know the cost/benefit of using the card in these cases. For example, if your credit card comes with a rewards program and you plan to use the card to obtain airline miles (or that “gift” electronic gadget that you’re only 1000 points away from scoring), realize that it could easily cost you the same amount, or more, in transaction fees to reach these reward program goals. It is necessary to take the time to understand the consequences of purchases abroad. You will need a strategy! For example, what service fee will be charged?  (It is often a % of the purchase amount vs. a flat fee.)

3) Notify the credit card company of your upcoming study abroad and tell them where you plan to study and travel: Your card can and often will be frozen if there is an unusual pattern of purchases. Carrying a 2nd, back up, card can help if this does happen even after calling your card company. You can ask for a backup copy of your main credit card, but don’t activate it abroad unless your first card is frozen. And have a backup plan in case the card isn’t available – keep a reasonable supply of cash on you. A reasonable amount will depend on where you are studying and travelling. Ask whether you’ll need to show ID (such as your passport) when using the card abroad. This is often the case in some locations or venues.

4) Chip cards with a PIN (personal identification number) cards can often be more efficient abroad: Many other countries will not be able to process credit (or debit) cards that only have a magnetic strip, which is the type of card that the U.S. likes to issue. The U.S. is very behind in this area and it has caused many woes for travellers abroad.  In these cases, there is often no ability to manually punch the card number into the machine either. And be forewarned that some establishments (in the US and abroad) will not accept the American Express card (chip or no chip) simply because their processing fees are higher than MasterCard and Visa.

5) Sign up for online bill payments: This will allow you to quickly see your purchases and associated fees, as well as receive emails with the due date of your payments. This will help you to avoid any late fees and allow time to adjust your budget, based on your spending patterns, if needed.

And one of AUIP’s top tips: Be sure that you keep a photocopy of your actual credit card in a safe place when overseas including the numbers to call in case it is lost or stolen.

Let us know if you have anymore!