When it comes to traveling, debit cards really should NOT be your first payment option choice. There are many reasons that you might want to use one of your credit cards instead and leave your debit card at home while traveling, including the threat of card blocking, comparatively less fraud protection, as well as daily spending and withdrawal limits typically enforced on debit cards.
Debit cards also don’t provide you with equivalent protection for fraud compared to a credit card. If you lose your debit card and someone somehow gets hold of your password for the card, they can potentially wipe out your checking account. If you have a daily spending limit on your card, you won’t have to worry about getting completely wiped out if someone steals the card or if you lose it as any thief would also be limited by any daily transaction limits. The threat of debit card fraud though is primarily about the recovery of any funds that may have been stolen. Because of this lack of protection compared to credit cards, there’s a chance you won’t even be able to recover the money you’ve lost on those bogus cash withdrawals. Don’t let the MasterCard or Visa logos on your debit card fool you into thinking that you have the same protection unless, of course, it’s specifically outlined in your debit card policy. Typically, that type of language on debit card agreements though doesn’t exist.
And then there are the daily spending and cash withdrawal limits to contend with. Having a cap on your daily spending can seriously limit your activity, especially if you’ll occasionally need access to more money than the card allows. After all, a meal at a nice restaurant, visiting a few major attractions, or doing a little shopping all on the same day can max out your spending limit fairly quickly.
You might also find yourself hamstrung by fees from debit card use while traveling overseas. Both credit card AND debit cards charge what are known as ”currency conversion fees” on transactions made by US citizens in foreign countries. These conversion fees add up to as much as an additional 3% on all of your foreign purchases. However, those fees apply to both credit card as well as debit cards. Presently, the only 2 card issuers that don’t charge anything for card use abroad are Capital One and Discover. (Remember though, that a card issuer’s terms and conditions can change at any time so before applying for a Capital One or Discover Card make sure to double-check on their currency conversion fee policy.)
To top it all off, you might not even be able to use your debit card overseas, even if you wanted to. Because fraud internationally is such a concern for banks and card issuers, certain banks won’t even allow you to use their debit cards overseas. So, before you head out on your trip, make sure your card provides you with the type of protection you need and make certain that whatever card you’re planning on using, whether it’s a debit card or a credit card, will work to your advantage.
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