Use Of Your Credit Card While Overseas
Credit card fraud and identity theft are two crimes on the increase.
Credit card companies are becoming more vigilent in protecting themselves
from liability from unauthorized use of your credit card.
A common practice is for credit card companies to monitor your "usual"
spending patterns, then, if there is deviation from that usual pattern, to
alert their fraud department. Usually the fraud department will place a
simple telephone call to the card holder to confirm that the cards have
not been lost or stolen and that recent purchases are authorized. If you
are away from home on a trip, then you would not be home to receive that call.
There are cases where the credit cards have been blocked by credit card
companies when they suspect fraud, and when they cannot get in touch with
the card holder to confirm authorized use.
Before leaving for your trip, phone the Customer Service number for
your credit card company and let them know where you plan to travel and
for how long. By doing this you should prevent your card from becoming
blocked. The last place you want to be when you learn of your card
becoming blocked is when you are face to face with an angry merchant and
local police, speaking a language you do not understand.
If, while traveling, your card is denied, you can phone the Customer
Service number for your credit card and resolve the situation quickly.
Many credit card companies print, on the back of the card, a non-800 phone
number that receives collect calls 24 hours a day, 7 days a week from any
place in the world. Look on the back of the card you hold now to see if
that is the fact. You might also want to call your credit card company now
and ask specifically what are their procedures for reporting a lost or
stolen card, as well as resolving any card denial problems.
If you plan to be away for a long period of time, perhaps over a
payment cycle, you'll need to make arrangements for paying your credit
card bill while you are away. One option is to investigate automatic
payments or money transfers that can move money from your bank account to
the credit card. Set this up before you leave, then give it a try. You
will want to feel comfortable doing this from a foreign Internet access
point. You can also give temporary power of attorney to a trusted friend,
relative or accountant, and ask them to pay your bills for you. That
person's name and number should be on file with the credit card company as
an alternative contact.
Another question you should ask of your credit card company concerns
rental car insurance coverage. Many, but not all, credit card
companies provide secondary car insurance for rental cars, under certain
conditions. If your primary insurance does not cover you outside the
United States, then the credit card coverage might work as your primary
coverage. This could save you considerable money on the rental car
company's Collision Damage Waiver and other insurance charges.
There are various exclusions to the credit card car insurance coverage,
such as coverage for luxury vehicles, for driving in various nations, for certain
lengths of time, and so forth. If you plan to rent a car while on your
trip, you are very well advised to speak to an insurance specialist at
your credit card company and confirm coverage for the exact location, time
period, vehicle and drivers that you will encounter on your trip. Get the
name of the specialist with whom you spoke.
It might be convenient to confirm both issues, the rental car
insurance and anti-fraud advance alert for your account in the same phone
call.
Finally, check to see what your credit limit is and what your hotel and
rental car companies might block in advance. If your credit card balance
is near your maximum credit limit, and if your hotel gets authorization
for a large amount, you may find yourself with no credit and an unusable
card. Discuss this with a customer service rep at your credit card company
before you leave.
This is information you should take with you on your trip, preferably
in several copies packed in different parts of your luggage. Leave a copy
at home with a trusted friend or relative, as well.
08/09/2003
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