TRAVEL CREDIT CARDS

Travel often, but don’t have a credit card that rewards you with travel perks? Neither did I– until recently. After much research I chose the Capital One Venture card. Just like the hype of their TV commercials, it earns points with every purchase (not just travel purchases). It charges no extra fees for use internationally, and it has a very low annual fee (first year is free). Capital One Venture met all my requirements, but there are many others out there.

Click through these comparative rating and review Websites to find a card that’s perfect for you or find your own travel card comparison site.

Chip & Pin Technology: So what?

I set out to acquire an EMV chip technology travel credit card prior to my most recent trip to Peru, but soon discovered that, in the USA at least, there are only 2 or 3 options and the annual fee for true EMV chip and pin credit cards is beyond my budget threshold. This may change over the next few years, but for now I had to pass. However, if you are curious, read on . . .

Here’s is some interesting information about Chip and Pin credit cards.

At the writing of this entry, the US is behind the (European) curve when it comes to secure credit card technology. What I am referring to is what the industry calls EMV chip technology. The EMV chip is named after its original developers Europay, MasterCard and Visa. [So simple–who knew?]

Instead of the chip with signature that has only just become the standard in the USA; EMV chip technology utilizes a much more secure method of chip with pin (number). [Bank debit cards already use EMV technology. See below where I share a great travel tip that was shared with me.]

Insider Tip

Here’s the tip I referenced earlier.

Bank credit cards DO use EMV technology. During a to one of my credit card companies (to let them know I was about to travel abroad) the gal answering my call gave me two valuable recommendations:

1) If you use a credit card to get emergency cash on a trip make sure you get to a bank or to a WiFi accessible location ASAP to pay back the amount cashed out, PLUS an additional 25% to make sure you’ve covered all interest fees, etc. You see, unlike other charges on your credit card, interest begins accruing the moment you receive the cash and will continue accruing daily until the amount is repaid to the card. She shared with me that many, many card users are not aware of this and even if they repay the exact cash amount to the card, they forget about the interest—which will continue accruing until it is paid off. This led to her next recommendation…

2) Open a stand-alone travel account with your bank. Do not connect it with any of your other accounts. Prior to each trip estimate the amount of cash you will require, and move that much (plus a buffer) into the travel account. Your bank will provide you with an EMV chip and pin card that will not* charge international usage fees. It’s a win-win.

I followed the gal's advice and it worked out great!  BUT, there's more to the story.  If you are curious, read on. . .

About 3 weeks after our return from Peru we removed all but $200 from the bank travel account with the intent to let it sit fallow until our next adventure. About 6 weeks after our return we noticed a draw on the account originating from the ATM of a bank we frequented while travelling throughout Peru. The withdrawal of $162 (when calculating for exchange rates) approximated the maximum withdrawal amount that country’s ATMs will allow per withdrawal. We brought our suspicions to the attention of our bank.

After a quick bit of research the bank determined the withdrawal was, indeed, fraudulent and reimbursed us immediately while also shutting down that account and standing up a new one immediately.

We have no idea how our information was acquired by the “bad” guys. We were careful and vigilant of our environment when withdrawing cash. We almost always worked as a team — one on watch while the other withdrew the funds. But when you understand that $162 USD is approximately a 2 month’s salary for so many in that country. Well, the incentive to game the system is very high.

*make sure to ask your bank about this—just in case it has different standards/policies than mine.

THE CURIOUS TREKKER BLOG TRAVEL TIPS