Credit cards vs. debit cards
Credit cards are the smart way to pay for things in another country. “They’ll generally give you a favorable rate” says Greg McBride, senior financial analyst for bankrate.com.
Expect to pay a 1 percent conversion fee when you use your Visa or MasterCard overseas. Many banks also tack on a 2 percent surcharge.
Credit cards are also a safer way to pay than debit cards because they offer fraud protection required by federal regulations.
“I would never use a debit card to pay for things overseas,” cautions Ed Mierzwinski, consumer advocate for U.S. PIRG. That’s because consumers who use debit cards have “fewer rights if there’s a dispute or fraud than those who use credit cards,” he says.
Something else to consider: When you check in to a hotel they put a “block” on the credit card or debit card you give them. It could be $100 or more a night. That’s no real problem for most people who present a credit card. But if they put that block on your debit card — which puts a hold on the money in your checking account — “it could cause you to bounce checks,” Mierzwinski warns. If you really want to pay the final bill with a debit card, check in with a credit card and use your debit card when you check out.
| Credit cards vs. debit cards
Expect to pay a 1 percent conversion fee when you use your Visa or MasterCard overseas. Many banks also tack on a 2 percent surcharge.
Credit cards are also a safer way to pay than debit cards because they offer fraud protection required by federal regulations.
“I would never use a debit card to pay for things overseas,” cautions Ed Mierzwinski, consumer advocate for U.S. PIRG. That’s because consumers who use debit cards have “fewer rights if there’s a dispute or fraud than those who use credit cards,” he says.
Something else to consider: When you check in to a hotel they put a “block” on the credit card or debit card you give them. It could be $100 or more a night. That’s no real problem for most people who present a credit card. But if they put that block on your debit card — which puts a hold on the money in your checking account — “it could cause you to bounce checks,” Mierzwinski warns. If you really want to pay the final bill with a debit card, check in with a credit card and use your debit card when you check out.
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