Organizational matters when traveling –Credit Card

Organizational matters when traveling –Credit Card

Here you will find a quick summary of questions and answers about the organization of the trip.

Do I need a credit card when traveling?

The credit card is often necessary to pay for your accommodation or flights abroad. It often has to be deposited with car rental companies. The local debit cards from a country are not always accepted abroad or do not work.

While it is common to pay in cash in Germany, in countries like Australia, New Zealand or Canada you can go shopping without any cash. Contactless payment is very popular over there, it is very easy only the card is held on the reader.

The selection of credit cards on the market is huge, so it is important to make a precise comparison. Ideally, worldwide should be free of charge:

  1. The credit card (no annual fee)
  2. Withdrawing money from the machine
  3. Paying with the card

Which is the best credit card?

Here you can find a comparison of the current credit cards for travel

DKB Visa Card

With its “DKB Cash” tariff, the DKB fulfills all three requirements: It is a free credit card with no annual fee, with which cash can be withdrawn free of charge from ATMs worldwide and free payment with the card can be done worldwide.

In addition, the DKB offers a free checking account and a 0.01% annual credit interest (up to 100,000 euros). Payment can be made contactlessly via credit card (up to 50 euros without a PIN) or via your smartphone using the Google Pay or Apple Pay apps. There is also a free emergency service that provides you with an emergency card or emergency money anywhere in the world within 48 hours, regardless of where you are. In general, the DKB offers 24 hour support every day of the week, the hotline is available around the clock. With the card hassle you are insured against damage that occurred between the time the card was lost and the card was blocked. If you shop at online shops such as OTTO, GALERIA Kaufhof or Expedia.de, you will get up to 20 percent money back on your account. With a so-called “online safe”, important documents can be secured online on the DKB website. “Verified by Visa” protects your online card payments with an additional TAN.

However, there is one disadvantage: At the DKB there is a division according to active customers and non-active customers. New customers are automatically active customers in the first 12 months. If the first 12 months have expired, it is necessary to be able to register a deposit of 700 Euros per month in your account in order to remain an active customer.

Tip: It is not relevant for the DKB how the 700 Euros get into your account, i.e. you don’t necessarily need an employer to transfer the money to you every month. You can also receive the money yourself, e.g. from another bank account. With standing orders and your second account, you could easily and automatically transfer the money back and forth monthly. In addition, the DKB does not specify how long the money must be in the account and whether it is paid in as a whole or in certain amounts. Therefore, the rule is relatively easy to comply with and you can continue to use all the advantages as an active customer (otherwise you would have to pay 2.2 percent of the amount for a withdrawal outside Europe, for example).

Santander Bank

Santander Bank offers a free credit card with no annual fee. With this you can withdraw worldwide without fees.

However, it should be noted negatively that only four cash withdrawals per billing month are free of charge and that fees will be charged from the fifth withdrawal. In addition, you can only pay for free with a credit card in countries with euros. The fee for paying in countries outside the euro area is 1.5 percent of the respective turnover. The account runs through a reference account you have specified, so no additional Giro account is set up. Credit card billing is a bit complicated, it is done in monthly installments of 5 percent of the outstanding amount. In order to avoid high interest rates, you should transfer the repayment amount yourself or have correspondingly high amounts in the account.

Additional services: There is a tank discount of one percent worldwide (up to a maximum of € 200 petrol station sales per month). You can also get a free additional credit card and contactless payment is possible (up to 50 euros without a PIN). If you book a trip through Santander Bank, you will be reimbursed five percent of the amount. There is a service hotline that is available around the clock. “Verified by Visa” protects your online card payments with an additional TAN.

 

Hanseatic Bank GenialCard

With the “GenialCard”, the Hanseatic Bank fulfills all three requirements: It is a free credit card with no annual fee, with which cash can be withdrawn free of charge from ATMs worldwide and free payment with the card worldwide.

About the additional services: Payment is contactless (up to 25 euros without a PIN) and mobile with your smartphone via Apple Pay. “Visa Secure” also protects when paying online. If you book a trip through Hanseatic Bank, you get a 5 percent discount. There is also a voucher portal with many discounts on vouchers and participation in competitions is possible.

No additional current account will be set up for you at Hanseatic Bank, the account and the billing will run via a reference account that you have specified. The GenialCard offers you the option of a partial repayment function without interest in the first three months.

Disadvantage: With regard to the partial repayment function, credit card billing can be a bit complicated. You should make sure that the credit card sales are not repaid in installments after three months, otherwise high interest rates may arise. It is advisable to request a direct debit from your account. This way, additional interest can be avoided.

It should be noted negatively that the Hanseatic Bank does not offer extended service times for customers with the free GenialCard. The bank can therefore only be reached from Monday to Friday, from 9 a.m. to 6 p.m. and not on public holidays. If a card is blocked outside of business hours, this can be done online via an answering machine or app.

Comdirect Visacard

Unfortunately, the Comdirect Visacard does not meet all criteria. The credit card itself is free of charge with no annual fee, but cash can only be withdrawn to a limited extent and worldwide. This is only possible in the countries in which the euro is considered a foreign currency, otherwise there are fees of 9.90 Euros. However, the free current card can be used to withdraw money free of charge if you are within the Euro area.

The Comdirect credit card cannot quite keep up with the free worldwide payment. It is free to pay within the euro area, but outside the euro area 1.75% is incurred on the respective turnover. This so-called “foreign assignment” is not reimbursed.

However, the additional services are comprehensive. There is a free current account with a Girocard and a 24-hour hotline service. In addition, contactless payment (up to 50 euros without a PIN) and payment with Google and Apple Pay with your smartphone are possible. If sales of more than 200 euros are registered, you will receive a free security SMS. With “Verified by Visa” you are protected with a TAN for Visa card payments on the Internet. It is also possible to get a free desired PIN and an additional Visa card for authorized representatives for 14.90 euros per year. There is also a 3-rate service that allows large amounts of debits to be spread over several months. In an emergency, you can receive emergency cash via the Comdirect (costs: in Germany: 9.90 Euros, abroad 49.90 Euros).

More Credit Cards

Of course there are other credit cards, but they also have their weaknesses.

The problem that the account holder is responsible for balancing the account for credit card billing in order to avoid high interest rates does not only exist with the Santander credit card already presented, but also with the free credit cards from TF Bank and Barclay.

Similar to the Comdirect Visa Card, the free ICS Visa Card has the disadvantage that fees are payable worldwide when paying abroad. The Ing-Visa card can only be used to give money free of charge in Europe, exactly the same applies to the free N26 Mastercard, both providers charge fees for cash withdrawals in foreign currencies.

Other credit cards sometimes have “hidden” costs. Although they are free in the first year, they charge a fee from the 13th month, which can be viewed critically in the long term.

As you can see, there are some free credit cards on the market, but unfortunately very few meet the set criteria.

Overview of free credit cards for travel

 

DKB

DKB Cash Visa Card

Santander

1 plus VISA Card

Hanseatic Bank

GenialCard Visa Card

comdirect

Visa Card

No annual fee

Yes

Yes

Yes

Yes

Free withdrawals from ATMs worldwide

Yes

Yes

Yes

No, only free in countries without Euros

(only debit card is free in countries with Euros)

No fees for payments worldwide

Yes

No, only free in countries with Euros

Yes

No, only free in countries with Euros

Disadvantage

-These services are only available for new customers within the first 12 months and active customers

 

-Payments outside the euro area by credit card: 1.5% on the respective turnover

– Four cash withdrawals per billing month free of charge, from then on it costs high fees

-The credit card bill is a bit complicated, high interest rates can arise

– Credit card billing can be a bit complicated, make sure that the credit card sales are not repaid in installments after 3 months, otherwise high interest rates may arise

– No extended service times (24 hour hotline)

– Cash withdrawal by credit card in countries with euros as the official national currency costs 9.90 euros

-Payments outside the euro area by credit card: 1.75% on the respective turnover

Additional service

-Giro account with Girocard included free of charge

-Payment contactless (up to 50 euros without PIN) and mobile with Google and Apple Pay possible

– 0.01% p.a. Credit interest up to EUR 100,000

– Protected by card collision if the card is stolen

– Online cashback for purchases from selected shops

-Emergency card and emergency money available in most countries within 48 hours worldwide and free of charge

-24 hour hotline

-Verified by Visa protection for online payments

-1% fuel discount worldwide (up to a maximum of € 200 petrol station sales per month)

-5% refund on travel bookings at Urlaubsplus GmbH

-Free additional card

-Payment contactless (up to 50 euros without PIN)

-24 hour hotline

-Verified by Visa protection for online payments

-5% discount on travel bookings at Urlaubsplus GmbH

Voucher portal with discounts on vouchers

– Participation in competitions possible

-Balance of credit card sales in installments possible, no interest in the first 3 months

-Payment contactless (up to 25 euros without PIN) and mobile with Apple Pay possible

-Visa Secure protection for online payments

-Giro account with Girocard included free of charge

-Payment contactless (up to 50 euros without PIN) and mobile with Google and Apple Pay possible

– Free SMS info service for sales of more than 200 euros

– Free request PIN

-3 rate service for splitting large amounts

– Additional Visa card for authorized representatives for 14.90 euros per year

-24 hour hotline

-In an emergency: emergency cash available (costs: Germany: 9.90 euros, abroad 49.90 euros)

-Verified by Visa protection for online payments

 

Conclusion:

Winner: The best free credit card for your trip is the DKB credit card

  1. Free credit card with no annual fee
  2. Free cash withdrawals from ATMs worldwide
  3. No fees for payments worldwide

The only downside is that after a year you are no longer considered a new customer and the entry of € 700 a month into your account is required to continue to benefit from all the benefits. However, this can be easily solved by standing orders that transfer the money in circles from one account to the other (see above). Even if you did not do this, the account and credit card will remain free of charge for non-active customers with no annual fee.

From personal experience, I can only recommend the DKB, I have been using it myself since the beginning of my trip in 2015. For me, the DKB offers an “all-round carefree” package that I don’t have to worry about. The customer service is very good and can be reached 24 hours a day. I myself was already using the free emergency service when my card was withdrawn in Bali and could not come out of the machine. I had the emergency credit card on hand within 48 hours. In addition, the employees give many tips on the phone in a very friendly manner. As you can see from this comparison, I would choose DKB again today as the provider of my credit card when traveling.

Here you will find the link to the DKB.

Alternative: The second place is the GenialCard from the Hanseatic Bank. However, you should make sure that you request billing from your account by direct debit in order to avoid high interest rates. Personally, I don’t like the fact that the bank can only be reached to a limited extent, i.e. only during the relevant business hours and not on public holidays. It would be nice if someone was available by phone around the clock, especially when abroad, with time differences and in emergencies in which the card is to be blocked. The card is great as a second card and as with the DKB, there is no need to worry about costs. Both cards have no annual fee, even if the cards are not used and have been in the closet for years, there would be no costs.

Tips for credit cards abroad

-Only for security: Try to enter the PIN so that nobody can see it (stand in front of it or hold your hand over it).

-Check the receipts when you buy something. Sometimes we just sign without looking closely.

– Check your account online every now and then and check the amounts of previous purchases.

-If you cannot remember the PIN and wrote it down, do not put the note directly near the credit card / in the same wallet.

– Ideally, you shouldn’t talk to anyone else about what your PIN is.

-Try to apply for the credit card a little in advance of your departure date. Banks take some time to process and often send you the credit card and PINs in different letters, so it can take two or more weeks for everything to be together.
 

-When banks write that you can raise money anywhere “for free” anywhere in the world, this may only be partially true. If you withdraw from a machine in a supermarket or in small kiosks abroad (for example, Seven Eleven), fees may still apply. These are third-party fees charged by the machine operators. The relevant machine (“ATM”) will tell you whether this is the case and how high the fees are and ask for your consent before withdrawing. It is therefore recommended that you go to a machine at a real bank, ideally in a branch, and withdraw money there.

(In the USA, Thailand, Cambodia, Vietnam, Indonesia, Mexico, for example, additional fees may also arise in bank branches. The only credit card provider that still pays these back on separate requests today is Santander Bank.)

-Try to find a mediocrity: Don’t have too much money on your credit card if it should be stolen, but not too little if you want to buy or book something that is expensive (flights or car, for example).

-If you are traveling in Asia or Central / and South America, it is recommended to carry the credit card and passport in a belt pouch on your body under your clothes. I have already had money stolen from my backpack, which was a little further away from me without my noticing it.

-Ideally you have two credit cards. In the event that one is stolen, you can fall back on the second card (best to hide in different and inconspicuous places). For sometimes inexplicable reasons, credit cards do not work on certain machines (this has often happened to me personally in Central America). This is another reason why it is advantageous to have a second card with you as a replacement. If this does not work either, it could be because there is not enough money in the machine itself or the machine is simply defective.

-If your card is withdrawn by the machine and no longer issued, it is advisable to have it blocked immediately. Exception: You are at a machine in a bank branch and one of the bank employees can take it out of the machine before your eyes and give it back to you. If the card is lost or stolen, the account should be blocked immediately.

*This text contains links and advertisements. Legal notice: This comparison is for information about the different credit cards. The relevant bank can make an offer in accordance with the new consumer credit guidelines.