An important lesson learned re:traveling without a credit card: DON'T!!

[Azulann]

I have recently opened a second checking account for travel only, with its own debit card and Visa logo. It is with my primary bank.

I fund that checking account for my trips.

Used it in Central America and knew that if it was compromised in any way , I would not be out very much money.

Of course I always bring other cards, and one as a backup if I ever got stranded and needed to get back home.that one stays in the safe.

[varoo]

I have recently opened a second checking account for travel only, with its own debit card.........

We keep a separate travel account also, as do many others, just for peace of mind.

 

The debit card for the travel account has no access to our regular bank account so there is no possibility of a check or auto payment bouncing, regardless of what happens to the card.

 

I only wish the debit card had a chip to make it more secure, like the credit card we use when traveling.

But I think it is only a matter of time until cards with chips become more prevalent in the USA.

 

[PunkiC]

I guess I don't understand the poor credit ratings. If someone is having that hard of a time financially, how can they afford a cruise? Maybe I'm naive, but we always put our reservation on a credit card and then pay the balance when we receive the bill...just a matter of transferring money from savings to checking.

 

If you don't understand poor credit ratings, you are very fortunate indeed. During this last recession, lots of folks lost jobs, homes, and credit ratings. I knew some highly competent, talented, hard-working folks who lost six figure jobs and had to let go of houses that had gone upside-down.

 

I think most of us plan to be fiscally responsible, but there are lots of catastrophes, outside of our control, that can interfere with our plans. It can take many years to rebuild credit once it has been destroyed.

[Project_gal]

I have had an increasing problems with banks and security. I guess too many cards get stolen and counterfeited. Trying to withdraw cash from foreign ATMs can trigger it to be stopped. Payments now have to be verified by use of a smart phone you can verify payments with a text message. OK if you have a smart phone that works overseas.

 

Our banks just call our designated 'phone number - does not have to be a smartphone. It is all automated and efficient. However, we avoid using ATMs overseas if at all possible. I feel that you are vulnerable using them in obvious tourist areas like ports.

 

My friend got a call from Amex asking her about possible fraudulent activity on her account. It was used in a local grocery store! I guess that was a first for her she only eats out in expensive restaurants LOL

 

Now that is why we stick with the same banks as they have decades of data about our spending patterns and their fraud detection algorithms are now exteremly sophisticated.

 

Sue

[kitty9]

There are actually two kinds of debit cards here in the US. One is the kind of debit card that's tied to your bank account, and has your name embossed on the card. Those cards also have Visa, or Master Card written on the card. The other kind of debit card are those that are also referred to a pre-paid or pre-loaded, or gift cards. They may have a Visa or Master Card or Am Ex logo on it, but your name isn't embossed on those cards, and its those cards that cruise lines won't accept for on board payment, and I've yet to find any hotel or rental car company that accepts those. Actually, I had one of those gift cards with me on a cruise and did not find one store in any port that would accept them for payment.

[NL2134]

If you don't understand poor credit ratings, you are very fortunate indeed. During this last recession, lots of folks lost jobs, homes, and credit ratings. I knew some highly competent, talented, hard-working folks who lost six figure jobs and had to let go of houses that had gone upside-down.

 

I think most of us plan to be fiscally responsible, but there are lots of catastrophes, outside of our control, that can interfere with our plans. It can take many years to rebuild credit once it has been destroyed.

 

I had always been very fiscally responsible from a young age and had a 800 credit score until a few years ago when I got laid off of work. Shortly before that I had some emergency medical bills that I had no choice but to put on credit card. Although I tried like crazy to find any type of job (applying for everything from my trained profession to even applying at fast food & gas station cashier jobs), I was out of out of work for about 6 months, then only part time work for another 4 months. That emergency credit card charge ended up destroying my credit I had worked so hard to build. I am back working with decent salary now, but it is so hard to rebuild credit. Any bad items stay there for 7 years and make it almost impossible to get new credit. Even with making current payment for last couple years on all my bills, including auto loan, I still can't get approved for credit card right now. I had savings and thought I was prepared, but not enough to live off of for 10 months. Sometimes things happen you can't be totally prepared for, no matter how responsible or prepared you think you may be. Many people have been through similar situations during this recession. Anyone who "can't understand bad credit" is very lucky indeed.

 

As such, I use debit card for everything lately. I have multiple accounts at same bank and keep minimal amount in my most used account then just transfer money as needed. That way there isn't much at risk if card gets stolen. I have had one rental car company give me issue with using debit for the deposit (I was actually willing to let it hold the amount in my checking) and I had to convince someone else to put their credit card for me. I am concerned about this for my upcoming cruise next year... Especially since they do hold so much for deposits. And it is definitely riskier than credit card. But, I may not have much choice.

 

Sorry for the long response.

[coldbird]

 

I only wish the debit card had a chip to make it more secure, like the credit card we use when traveling.

But I think it is only a matter of time until cards with chips become more prevalent in the USA.

 

 

My wife had a call at work from the bank processing their cc transactions this week! They are changing the card reader over to one that can process chip and pin technology!!!! This is a start at least to joining the rest of the world

Edited August 25, 2013 by coldbird

[bbappel]

I am one who travels using a Debit Visa Card, I have two on different accounts. I rent cars & hotels with them with no problems. I do now have a credit card from my credit union that has a low limit on it (all they would give), that I carry for emergencies.

 

US Traveler's Checks are now issued on a Prepaid Visa or Mastercard Debit Card and can be an option for someone traveling rather than carrying cash.

 

1) Debit cards have different liabilities than credit cards. My sister-in-law was using a debit card to buy gas in Miami. The card was compromised and she became liable for $10,000 that she had to fight and prove were not her expenses. With a credit card, your liability is limited and you still have money in your checking account to pay your bills. In their case, she couldn't pay anything until this was settled and it took months.

2) Living with paid up credit cards is much more stress free. I sympathize with those who can't resist the next credit card purchase and are financing a life style that they were used to, or want to be used to, but as one who is now credit-free (we have credit cards but pay them off), it is worth doing without for a time to be in this place. I once hated the sound of the telephone for fear it would be about a bill I hadn't paid (this was before there were internet methods of payment and some of it was my inability to mail a payment in time not my inability to pay) now I only hate the phone because it is often some telemarketer.

[Host Walt]

Three thoughts.

 

1. Most banks will set up "prepaid" credit card accounts for those who don't have/want credit cards. The card issued appears exactly like any regular Visa or MasterCard and operates exactly the same way. The balance remaining on the card after the trip can be transferred back to the traveler's checking account.

 

2. Use ATM machines installed only by well known banks. Convenience ATM's such as in hotels, stores, etc. can be a bit chancy. We only use ATM's that are installed on bank property when we travel.

 

3. Always check your account activity online in both your checking accounts and your credit card accounts. Even with the high cost of internet access, we always check our accounts every morning to see if there is any inappropriate activity. (This technique caught an attempt to withdraw $10,000 from my bank account while we were traveling in time to block the completion of the transaction and also a few cases of double charges by restaurants in Paris and Malaga.)

[Project_gal]

3. Always check your account activity online in both your checking accounts and your credit card accounts. Even with the high cost of internet access, we always check our accounts every morning to see if there is any inappropriate activity. (This technique caught an attempt to withdraw $10,000 from my bank account while we were traveling in time to block the completion of the transaction and also a few cases of double charges by restaurants in Paris and Malaga.)

 

Good advice, which I always follow at home, but do take care if you want to do this while travelling. If you use an insecure Internet connection you are at risk of compromising your log-on details. A WiFi connection is more risky than a fixed one.

 

Sue

Edited August 26, 2013 by Project_gal

[phoenix_dream]

If a person has such a bad credit rating that they can not get a CC through the usual route, there are other options to build up their credit. They could get one or two store credit cards, use them and pay them off every month. After awhile, they might find that they could get a regular CC. Also, some banks will issue a credit card that is tied to a bank account. The balance in the account is locked and if the payment is not paid on the CC, the payment is taken out of the bank account. These are just some possibilities to build up a good credit rating again.

This is good advice for someone to try if in this situation. Also, a co-signer if you can get one. Unfortunately, depending on how bad the credit situation was, some of these options may or may not even work, but worth trying. By 7 years I was talking about the fact that I think it takes that long for a bad credit experience to drop off your record (maybe it is even longer for bankruptcy, don't know and hope I don't ever know!). In the interim, some of these options may be able to be used to begin building the credit. But it could easily be many years before you could build up to the limit you might need for cruise travel.

[Unitedflyier]

Our banks just call our designated 'phone number - does not have to be a smartphone. It is all automated and efficient. However, we avoid using ATMs overseas if at all possible. I feel that you are vulnerable using them in obvious tourist areas like ports.

 

 

 

Now that is why we stick with the same banks as they have decades of data about our spending patterns and their fraud detection algorithms are now exteremly sophisticated.

 

Sue

 

When you travel as much as I do having a US cell phone that will work in every country is very expensive. I do not use one because of the risk of theft. It can easily cost you thousands if they clone it or just rob you. I only use very cheap disposable pre paid phones. When I lose them or they are stolen I have only lost $50 max including the minute credit. But the US bank don't understand foreign travel. They are terrible a foreign currencies and will not accept skype numbers because of fraud.This makes it very difficult for me to do online banking in the US or UK where I live. Many countries you must use cash unless you want your credit card to get cloned. Hotel employees will steal your details.

 

I simply cannot keep up with informing my bank of every country I will visit on on what days. They cannot keep up with me.

 

Shame the scam artists have made it so difficult for everyone else.

[phoenix_dream]

When you travel as much as I do having a US cell phone that will work in every country is very expensive. I do not use one because of the risk of theft. It can easily cost you thousands if they clone it or just rob you. I only use very cheap disposable pre paid phones. When I lose them or they are stolen I have only lost $50 max including the minute credit. But the US bank don't understand foreign travel. They are terrible a foreign currencies and will not accept skype numbers because of fraud.This makes it very difficult for me to do online banking in the US or UK where I live. Many countries you must use cash unless you want your credit card to get cloned. Hotel employees will steal your details.

 

I simply cannot keep up with informing my bank of every country I will visit on on what days. They cannot keep up with me.

 

Shame the scam artists have made it so difficult for everyone else.

If your normal pattern is to travel extensively, then your credit card company is aware of this so there should be no issue with them mistakenly putting a hold on your account when they see charges all over the world. For most of us, foreign travel is an occasional occurrence and for us it makes sense to notify our credit card companies. For most of us as well, our hotels and restaurants are in first world countries or at the least countries heavily dependent on tourism where significant credit card scams would quickly be known and would destroy the tourism, so the risks of cloning are much less (albeit not non-existent to be sure). You lost me a little as regards how you can lose thousands by losing a phone unless you store sensitive data on it, or do online banking via phone?? Not sure what you meant. Definitely agree with your last statement:)

[boogs]

I simply cannot keep up with informing my bank of every country I will visit on on what days. They cannot keep up with me..

 

I find it takes less than five minutes to contact a bank representative and notify them of the time frame and which countries I will be visiting. There is no need for a day to day schedule. I give them the time frame starting with the day we depart, and ending a week after we are scheduled to return in case we are delayed coming home due to weather or other temporary issue. We also give them all the countries we will be visiting, including the countries connecting flights will take us to. Not difficult or time consuming at all. If you have time to plan your trip, you certainly have time to contact your bank for something this important.

Edited August 26, 2013 by boogs

[Condocat]

If you have a choice, use a credit card over a debit card. If your card is compromised and fradulent charges occur, the bank will only cover those charges that occur on a crdedit card, not a debit card.

 

This happened to me twice and thankfully, I was only carrying credit cards. The bank covered thousands of dollars of charges that were not mine.

[Realitoes]

If you have a choice, use a credit card over a debit card. If your card is compromised and fradulent charges occur, the bank will only cover those charges that occur on a crdedit card, not a debit card.

 

I agree with the first sentence, but the second is not entirely true. If you report it within the time limits established by law, the bank should cover fraudulent charges on your debit card. The difference though, is that with a credit card, you don't have to pay the charge until it has been investigated, with a debit, the money is already out of your account and you have to wait for the bank to reimburse you. This can be a real hassle especially if you are away from home on holiday.

[TVanTuyl]

Anyone who "can't understand bad credit" is very lucky indeed.

 

well said. 3 years ago I went through something similar (remove medical and insert divorce), and I cannot even get a secured credit card. What I think is patently unfair is that someone who declared bankruptcy and walks away from most of their obligations can start getting credit cards within months of "clearing" those debts ... my coworker is one such person. Here I am, happily working like a dog at a job that I love, keeping current on ALL payments, healthy savings and even (gasp!) a cruise or two a year, and I STILL cannot get even a secured card. It is disheartening to say the least (which is why I enjoy my cruises so much :D )

 

so it is easy to make comments like what I have read on here when someone may not have a clue what they are talking about.

[jbmanuel]

There seems to be some sort of movement where credit cards are seen as the work of the devil.

 

If you believe this or can't get a card (which is hard to believe as my cat has a Visa).

there are prepaid credit cards where you deposit the amount that becomes your credit limit. (My dog has this type).

 

Off topic but I feel the same way about the need for passports. You don't absolutely need one until you absolutely need one.

 

 

cat has a visa hahaha

[CathyCruises]

A visa debit card will work just like a visa credit card for securing a hotel room but the same does not apply to car rental.

 

"Some" car rental places will take a debit card but very very few :(

 

Poor lady, wonder if she has a visa debit card with her? That would hold the room and if they wanted to pre authorise the card at check in and she didn't have enough cash on it she could pay with cash.

 

 

I hope she gets some help.

This is not necessarily true. We have rented cars all over the US and Europe, including the UK, with just a debit card.

[TVanTuyl]

I always rent from Enterprise, each location states different rules, but every one that I have inquired to just takes a $350 to $500 hold on your debit card, and then they credit or charge the card with the amount between the deposit and the actual cost. I love Enterprise! Oh also no credit check, but they do want a couple of utility bills to prove your address.

[NL2134]

well said. 3 years ago I went through something similar (remove medical and insert divorce), and I cannot even get a secured credit card. What I think is patently unfair is that someone who declared bankruptcy and walks away from most of their obligations can start getting credit cards within months of "clearing" those debts ... my coworker is one such person. Here I am, happily working like a dog at a job that I love, keeping current on ALL payments, healthy savings and even (gasp!) a cruise or two a year, and I STILL cannot get even a secured card. It is disheartening to say the least (which is why I enjoy my cruises so much :D )

 

After my money problems a couple years ago I debated filing for bankruptcy. My credit would probably have recovered by now if I had. But I was raised to take responsibility for my actions. So I've stuck with my bad credit and have been slowly working at paying back my debts. It is really sad that you end up penalized for actually trying to pay what you owe instead of taking the easy route and filing bankruptcy.

[ceba]

I always rent from Enterprise, each location states different rules, but every one that I have inquired to just takes a $350 to $500 hold on your debit card, and then they credit or charge the card with the amount between the deposit and the actual cost. I love Enterprise! Oh also no credit check, but they do want a couple of utility bills to prove your address.

 

 

I've been in banking for more years than I care to admit. Though I don't deal with daily client transactions anymore, I do know a bit about loans.;) My comment is this: debit cards can be a wonderful thing as long as you are fully aware how they work, ie, what companies will hold an excess above your purchase (as one of the other posters wrote). They can also hold those funds for up to 3-4 weeks.(car rental companies seem to have the longest holds). Talk to your bank about notifying you while you travel with a debit and credit card. Most (not all) banks will not make you responsible for fraud against your debit card IF they can get a hold of you to verify AND if they know you are traveling. The biggest problem is folks just not being aware of how many times they pull that baby out to use it and lose track of their balance. The overdraft fees over a week could be staggering!!

[TVanTuyl]

My 21 year old is learning this now... he has the attitude that he can see his bank statement online and doesn't write checks so he keeps track without balancing his checkbook... $385 in fees later was a rude awakening!

[richstowe]

well said. 3 years ago I went through something similar (remove medical and insert divorce), and I cannot even get a secured credit card. I STILL cannot get even a secured card. It is disheartening to say the least (which is why I enjoy my cruises so much :D )

 

so it is easy to make comments like what I have read on here when someone may not have a clue what they are talking about.

I guess I'm one of those without a clue.

I am sorry to hear that you can not get even a secured CC card. Please keep looking.

I don't know the situation where you are ,but have you tried joining a credit union ?

They seem to have different policies from banks and bank issued credit cards.

Many people swear by their credit unions and the CC cards they issue.

Good luck .:)

[TVanTuyl]

Richstowe my comments were aimed at the person who said "If someone is having that hard of a time financially how can they afford a cruise?" but she herself said "maybe I am naive" ... I was too, before my problems.

 

To your comment, just because you (or your cat :D ) are sent a credit card offer, it does not mean that they will be approved.

 

I had not thought about a credit union, thank you for that suggestion