Traveling is one of the great gifts that we can give ourselves. Leaving home and our routine makes us grow, broadens our perspective, puts us in contact with different cultures and many other countless benefits. If you are lucky enough to be packing your bags and counting the days for your next international trip, check out some tips to save money and travel safely.The traveler basically has three options to pay their bills abroad: cash, debit card and international credit card. Our goal is to tell you about the advantages and disadvantages of using your credit card outside of Chile.
What are the extra fees?
In case you pay $ 100 for a product, the famous “International Purchase Commission” will apply. This varies according to your bank (check with your executive before buying something). Let’s imagine that the commission is 3.5%. In that case, the rates would be applied as follows (this analysis includes online purchases at amazon or other international stores):
– Charge for USD $ 100 to the international quota in dollars of your card.
– Commission for international purchase: with a rate of 3.5% as we said, it would be US $ 3.5 equivalent to $ 2,280 approx (note: take into account the date of publication of this post).
– Obviously the monthly maintenance cost is going to be activated, let’s imagine that it is $ 1,500, since we have charged “Pesos” online.
That means that the final payment that you will have to make will be: $ 100 + $ 3,510
What are the advantages?
In general more than the disadvantages. As you could see the extra costs are not as high as one might suspect (although it depends on the cost of the purchase). There are international shopping sites like Amazon, which now allow you, instead of importing through a third party, to buy products directly. They send them directly to the address you indicate, saving you the trip. In some banks you can accumulate kilometers or miles for trips, which is almost a currency today.
Another benefit of using a credit card is the security it gives you. You no longer need to walk with your money on the street, and if you lose your credit card or it is stolen, you can block it so you can not pay for purchases you have not made.
And the disadvantages
The big villain of credit cards is the instability of change. Banks sometimes do not make it very clear how collection is done. In some institutions, purchases are converted by the value of the dollar on the date of the invoice, and others charge the value of the change on the date of the invoice due, but it will never be with the value of the dollar on the date of the invoice. the purchase.
To be clearer:
– Let’s think that Eduardina bought a perfume on April 1, which cost US $ 100.00. On this date the price of the currency was $ 650.
– Your credit card closed on April 11 with a conversation of $ 1 = $ 670
– The invoice is due on 04/20 and the dollar conversion on the date was $ 680.
As we said, the credit card will never consider the change of the day of purchase.
Conclusion: everything will depend on the fate of how the currency will be on the day determined by the bank.
– Do not forget to contact your bank to release the credit card for international use. In general, you should inform in which countries you are going to use the card as a security measure.
– Be as careful as you would be in Chile: do not reveal your password to anyone, do not ask for help from strangers and do not lose sight of your card.
– Do not concentrate all your expenses only on the credit card to avoid being left with nothing in case of loss. One suggestion is to buy the local currency in kind.
– Always have the card’s Customer Service Central telephones on hand for simple situations. For example, lock the password.