Travel Debit Cards

Being prepared to travel is something that everyone should consider, especially when traveling overseas. A number of unexpected situations could cause the need of extra cash. Travel debit cards are specifically designed to provide solutions for those who travel. The entire world is moving away from cash and to debit cards, which is why having a debit card is extremely important whether you are traveling or not. Summer is approaching, and people will begin traveling more than they were during the colder months. Before traveling, people should prepare for their travel expenses and needs during their vacations and holidays.

There are many different types of travel debit cards that people can use internationally. However, there are certain risks and benefits that people should be aware of before choosing a travel debit card. One risk is known as a security hold. A security hold is the process of holding a deposit on someone’s credit card or a debit card in order to rent a hotel or a vehicle. People who travel with only cash will not have the option of a security hold, which could stop them from renting a hotel or a car. The downside of using a debit card for a security hold is the fact that a certain amount of funds on that debit card is being tied up.

On the other hand, a credit card will not tie up funds of the account holder. Instead, the card is only used when the account holder damages their rental or hotel room. In other words, credit cards serve as a purpose of covering risks that a renter imposes on car rental companies and hotels. If a person uses a debit card, the funds are immediately tied up in order to cover the risks that a traveler may impose on a hotel room or a car rental company.

If the traveler has only $1,000 on their travel debit card, and the card is being used for a $500 security hold, the traveler will only have access to the remaining $500. This creates a level of risk on the traveler. If the traveler needs more than $500, they will not have access to the security deposit to cover the expenses that many situations may call for. Travel debit cards also don’t have the rewards that a traditional credit card. For example, credit cards have rewards that are giving to the account holder after certain amount travel miles or the use of the card.

Even though credit cards have more rewards and safety programs that a traveler can take advantage of, travel debit cards are still more important to have when compared with cash when traveling. Travel debit cards should display the MasterCard or Visa symbol when using them for travel purposes. These symbols are accepted almost anywhere in the world, where as cash isn’t. Hotels and car rentals will often not accept cash for a security deposit, especially if it is foreign money. Traveling to a foreign country will most definitely require a travel debit card.

If a traveler is planning on using a travel debit card instead of a credit card, they are advised to set aside a large amount of cash to deposit on their debit card. In other words, using a travel debit card will require more planning than if a traveler were to use a credit card. Being prepared for traveling is a must when taking a vacation overseas, and people who take the time to prepare will avoid certain financial disasters that traveling is associated with. Travel debit cards help travelers enjoy their vacation not having to worry about how to provide enough funds for security deposits and other issues.