Travel Credit Card

By: EconomyWatch   Date: 6 October 2010

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A globally accepted travel credit card is one of the prerequisites for stress-free traveling. Travel credit cards simplify globetrotting by facilitating instant cash access. These transactions are conducted through a worldwide network of ATMs that have the MasterCard, Visa or Cirrus logo. A travel credit card also assists in immediate hotel bookings, travel reservations and purchase payments.

Travel Credit Cards: Features & Benefits

  • Acceptance at Currency Exchanges: Travel credit cards or prepaid travel credit cards are honoured at currency exchanges. Financial institutions usually charge a 3% fee for currency conversion.
  • Reward Program: Travel credit cards have an inbuilt reward program that encourages travelers to use their credit cards frequently. Cardholders earn reward points whenever they make a purchase. Cardholders can also collect these points and gradually redeem them for free goods and services.
  • Purchase Security: This covers the purchased goods for a period of 90 days. Purchase security compensates for cases of theft and damage caused by fire, accidentally discharged water, vandalism and certain weather conditions.
  • Annual Fee: Travel credit cards can be acquired for an annual fee of $45 to $80. The fee-based travel credit card, however, offers a better reward program than that offered by a no-fee travel credit card.

  • Zero Liability: Under this feature, a cardholder is not liable to pay for the unauthorized use of the card. Eventually, it saves the cardholders from the bearing the brunt of fraudulent transactions.

Standard features such as emergency card replacements, lost and stolen card reporting and emergency & travel assistance services are also applicable to travel credit cards.

American Express, Citibank, Thomas Cook and Barclays are some of the popular issuers of travel credit cards.

Travel Credit Cards: Restrictions

The restrictions associated with travel credit card include:

  • The Zero Liability policy is not applicable to ATM transactions or ATM transactions that are not done through Visa or MasterCard.

  • Dependents who are younger than 22 years can only avail the emergency and travel assistance services.

To apply for travel credit cards, one can log on to the official website of Visa or MasterCard.

‘Travel Credit Cards’ are trademarks of Visa and MasterCard, who can be found at www.visa.com and www.mastercard.com

 


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