Using Visa and Mastercard abroad
When preparing for a trip, many have the question of how to deal with money for daily expenses. Taking the full amount in cash can be unsafe. But can you take your bank card with you abroad? Will she work there? Do I need to create a separate account for the currency? How not lose money on conversions? We will try to answer these questions and tell you about all the details of using cards abroad.
Before you make any credit card payments, check the credit card number with the cc checker online. It will help you to identify if the credit card number is valid or not. With that as we all know how important the bincode number is. It helps you and financial organizations from fraudulent activities.
Ans with the bank identification number you can also identify the organization from where you issued the card. To identify your bank identification number you can use an online bin code checker tool.
What cards can you use abroad?
Bank cards by the type of payment system are into two parts such as international and local. The latter can most often only be used within the same country in which they were released. Cards belonging to international payment systems can be used abroad.
The two most common international payment systems – Visa and Mastercard – are represented in all countries of the world. However, where national payment systems are a priority – Japan or China, for example, there will be few terminals for withdrawing cash using Visa and Mastercard, although you can almost always pay by non-cash. When choosing a payment instrument for use abroad, be sure to pay attention to which payment system it belongs to.
What are the differences between Visa and Mastercard?
The main differences when using Visa and Mastercard are in the package of privileges and services available to holders. Depending on the bank and card level, you can get discounts, cashback, transfer or withdraw money without commissions. The maximum set of additional services is available to premium cardholders.
If the card is in foreign currency and you use it abroad. When you travel to Asia, you can feel the difference. Visa and Mastercard are American payment systems. The priority unit of account for the first is the dollar, and for the second, settlements in euros and dollars are possible. In those countries where the dollar is the cross-currency, such as the United States, Asia. It is more profitable to pay with Visa cards, in the European Union – Mastercard.
What does the payment system currency affect?
If you have a card, you can use it for payments abroad. At the same time, for any payment, the bank converts the funds from your card into the national currency of the host country through the dollar or euro. It depends on the country and the agreements between the bank and the payment system.
Visa converts through the dollar. So if you are in a country where the calculated currency of conversion is euros, others from your card. The first conversion will be into dollars, then into euros, and only then into the national currency of the host country. Triple conversion – triple losses: banks, as a rule, do not have commissions for operations. But there is a fixed conversion rate, which differs from the market one and increases the amount charged to the card. But if you pay for purchases in Europe using Mastercard. The money will be converted directly from your currency to euros, the commission will be lower.
What to do in countries where payments are not made in dollars or euros?
If you are heading to a country where the dollar or euro is not the main currency, there may be a double conversion. If the card, firstly the conversion of the currency into one of the two main currencies, and only then into the national host country.
It is desirable to have currency cards, but it is impossible to guarantee settlements on them with minimal losses: the total amount debited depends on the bank’s commissions for operations, on the conversion rate, and the settlement rate between banks. Moreover, if abroad they offered you to pay in national currency – agree, even if your card is in dollars or euros. When paying, there will be one conversion into the national currency and that is all, while for debiting funds in foreign currency there may be additional commissions of the receiving bank.
Can I withdraw cash from a foreign ATM?
Here, technically, this possibility is always there. However, you need to understand that for withdrawing cash from ATMs of third-party banks, they almost always assume a commission. Usually, it is a few percent of the withdrawal amount, but not less than a certain fixed value. Bank cards by the type of payment system are divided into international and local. You can use the cards belonging to international payment systems abroad.
In addition, you can withdraw the commission not only from your bank. But also by the bank that owns the ATM. Sometimes the ATM warns about the amount of such a commission immediately before withdrawing. And sometimes it simply includes it in the general account and automatically withdraws it from the card. As a result, using a foreign ATM, you pay a double commission for cash withdrawals.
How can you avoid this?
- Use only ATMs of banks known to you – with them you will have fewer chances to get to the hidden commission.
- Try to use ATMs less often while traveling – it is better to pay the commission once, withdrawing a fairly large amount, than to overpay several times for small transactions.
- If possible, pay online. For example, you can pay for a purchase on the website and receive it in a specific store or order delivery, use the QR code to pay for tickets to events.
- Apply for a premium package of services – as a rule, you can withdraw cash in the currency of the card abroad with privileged cards without commission.