TripHip - Travel Tips and Advice for Traveling on a Budget

If you plan to use your credit or debit cards during a trip abroad, it's a good idea to let your bank and/or credit card companies know that you will be traveling.

If they don't know that you are traveling, they may lock your account, thinking that your purchases and withdrawals are suspicious because they are out of the ordinary compared with your usual use. This can not only be embarrassing, it can also leave you out in the cold when you most need the cash!

I recently returned from a driving tip of several weeks. I learned quite a few lessons on this trip. One of them was that when you stay at a motel or hotel and pay with a debit card, the money may not automatically be removed, or even put "on hold" from your account. For some smaller chains that use old-fashioned computer systems, your charge might not show up for a week.

The same with gas stations.

I'm one of those people who can't compartmentalize in my head, I like to see things visually.

So, on this trip, I used one debit card for all my motel bills, and one debit card for filling up my car, and I brought cash along to take care of all my souvenirs.

Prior to the trip, I had thought about purchasing a gas debit card from a specific company, but since I was travelling through many states, I decided that woudl be a bad idea since not all chains are in all states. So I bought a re-loadable Visa debit card instead, to use as my gas card. There was a small fee to load money onto it, which I found annoying, but overall I felt better about having my money compartmentalized in that way, so it was worth it.

Never just assume that your various credit, bank or debit cards will function at your destination if you are leaving your own country. Even traveler's checks are no longer a guaranteed currency option, as several developing nations don't accept them.

Even if a city claims to have certain kinds of banking machine services, you can get stuck if that turns out to mean there is one single machine in the business district, 50 blocks from your hotel. You really just shouldn't rely on banking machines anyway. Banking networks can be complicated, and service can be spotty. Credit cards can be a safer bet, but only large restaurants, hotels and stores may accept them.

Major cards like Visa and MasterCard are your best choice, but be prepared to pay some extra fees to use them. Smaller cards issued by your local banks are not likely be be accepted.

If you lost your credit card while on vacation, would you know who to call to cancel it? There is an inquiries phone number printed on the back of your card, but that's not going to do you much good if the card is gone.

So plan ahead and write the number down, just in case. And don't keep it in your purse or wallet. That would kind of defeat the purpose, if it's stolen.

With identity theft getting so much attention, credit card companies are always on the lookout for strange transactions on your credit card. While it can be nice to know someone is watching out for you, it can also mean that when you intentionally do something out of the ordinary, it will raise red flags.

So to keep your credit card from being suspended while on vacation (a potential disaster!), call the company and let them know of your plans. Be specific too. Tell them precisely where you are going and when.

If you have a credit card, you don't need to worry - much - about how much you spend. You put it all on your charge card, and keep charging until you reach your limit.

But with a debit card it is different. You can only spend the amount of money you have in your account, and no more.

It is imperative, therefore, that you keep careful track of how much you spend each day, and subtract it from your debit card.

Do *not* trust your online banking balance to tell you the whole story! You expect that because you're using a debit card, the money is removed immediately from your account. That is not always the case. Sometimes it takes a week before it shows up on your account.

In addition, be careful when taking cash out of an ATM, as you can get double-dipped here. The ATM will charge you $2.00, because you're using a card outside their network, and your own bank will charge you $2.00, for the same reason! So if you're getting cash, make sure you get enough out at once so that you won't have to do it again for the rest of your trip.

It is possible to use a debit card to reserve a hotel/motel room, and to pay for one. However, some businesses put an extra 15% on the card, for "incidentals." (Such as if you spill ink or something unwashable on a sheet, I assume, and they don't find this out until after you've checked out.)

Here again, you must be very careful. The money in your account is usually debited immediately, but sometimes its not. In addition, sometimes its debited, then "released" (so you think all of a sudden you've got $60 more than you'd thought!) than after another day it's debited again!

I cannot stress enough that when travelling with a debit card, you keep track of your payments yourself, and don't trust your online balance to tell you the correct story.

There is usually no surcharge for paying for your flights and travel insurance with a credit card, in fact there may be some advantages. Some credit card companies offer free life insurance cover while you are traveling if you book your flights, hotels or travel insurance on their card, so read the fine print.

All free add-on benefits for paying with a certain credit card should be seized!