How to choose a credit card for overseas travel can make overseas consumption more cost-effective, which is really a bit particular. Credit card experts say that there is not much difference in choosing which bank's credit card to use. The most important thing is to distinguish between dual-currency cards and foreign currency cards.
Dual-currency cards and UnionPay cards use PK to save money.
When a cardholder uses a dual-currency credit card in consumption abroad, he has to pay a one-time currency conversion fee of 65438+ 0%-2% of the total transaction amount, and bear the exchange rate risk. At present, domestic dual-currency credit cards are mostly settled in RMB and US dollars. If the cardholder's travel destination cannot be settled in US dollars or RMB, but a dual-currency credit card is used overseas, the local currency needs to be converted into US dollars for settlement. When repayment is made in RMB after returning to China, US dollars should be converted into RMB for calculation. In this way, there may be two exchange rate conversions, and there is a certain risk of exchange rate fluctuation, which may bring certain exchange rate losses to cardholders.
Experts suggest that in overseas areas where RMB credit card business has been opened, it is best to choose UnionPay card. Because, through the UnionPay channel, the consumption amount will be directly converted into RMB at the exchange rate, so there will be no exchange fee. This process only involves an exchange rate exchange process, and the RMB paid is the least.
UnionPay cards only have one exchange rate exchange, which can relatively reduce the exchange rate loss of cardholders. However, overseas, VISA and MASTER have more outlets and are more convenient to use, while UnionPay cards have few outlets.
Choosing the right foreign currency card to reduce exchange rate loss
UnionPay network has not been fully rolled out. In some countries and regions, not every merchant can swipe UnionPay cards. Visa, MasterCard or JCB credit cards are needed at this time. In order to avoid the currency conversion fee when swiping overseas, you need to choose a suitable foreign currency credit card before traveling abroad. Credit card experts suggest that cardholders should try to choose a foreign currency card with the same local currency when swiping their cards abroad. If you want to travel to Europe, you'd better choose Euro Card, Japanese Yen Card and Hong Kong Dollar Card.
Foreign currency cards are classified by currency, and the most common ones in China are US dollar cards, Hong Kong dollar cards, Euro cards and Japanese yen cards. Choosing the right foreign currency card can reduce the exchange rate loss. In countries and regions where the common currency of US dollar cards is not US dollars, such as Europe, the bookkeeping currency is the local currency, that is, the euro, which needs to be converted into US dollars at the time of settlement, and then converted into RMB at the time of repayment with RMB. This will increase the process of foreign exchange and bring certain exchange rate losses to cardholders. However, if you swipe the euro card, the bookkeeping currency and settlement currency are both euros, which will be directly converted into RMB, reducing some exchange rate losses.