Pay Smart When Traveling Internationally

For years, smart travelers knew that credit cards were a great way to pay abroad. A credit card was safer than carrying cash, and you got a great exchange rate in the bargain. That's because credit-card companies generally qualified for institutional exchange rates, rather than the much less advantageous rates tourists find at exchange kiosks. Unfortunately, many credit card companies have made this tried-and-true way to pay a little more costly.

Even with the surcharges thrown in, paying by credit card may still be cheaper than converting cash overseas. Paying with plastic is also quick and convenient, particularly in Europe, where Visa and MasterCard credit cards are widely accepted. In addition, many credit cards come with traveler-friendly features, such as extended protection against theft and the accidental damage of purchases. Others offer travel-accident and car-rental insurance. Paying by credit card also gives you the opportunity to dispute a bill from a foreign merchant. These vary according to country. Contact your local AAA branch office or Bank of America for details.

One final bit of advice: if you do plan to go overseas and use credit cards, call your card issuers in advance and let them know. Sometimes, the card may be put on hold after one or two foreign transactions until the card issuer determines that it is you using the card. If someone is not at your home to verify that you are overseas, then you could be in a real bind.

If you are looking for the perfect travel companion, visit AAA.com/creditcard or call 1-800-545-7899 for more information on rates, fees and other costs, or to apply for the AAA Platinum Plus® Visa credit card.