Smart plastic for vacation

A small plastic card can open doors all over the world

As summer approaches, people dream of holidays. Whether it is a feast of culture, a trip to cooler climates, or just a well-earned relaxing break in a beach resort, everyone looks forward to a change.

From ensuring your suitcases are brought out and aired to finding the best bargains for car rentals, pre-planning can make your holiday truly worthwhile. One of the biggest challenges of a holiday can be money management.

How much to spend on a holiday, how much to carry, or how to keep track of holiday expenses are all things holiday-makers grapple with, especially when shopping is hard to resist.

Financial planners recommend spending no more than 1.5 per cent of your annual income on holidays. While this is a good guideline, most would go beyond this and money management becomes the last priority.

The result is often surprise at the eventual cost of a holiday and the determination to plan better financially next time.

There are also times when money management goes right to the top of the list - wallets are sometimes lost or stolen, or travellers cheques stolen or misplaced. There are ways to avoid these hassles by budgeting and planning well in advance and handling expenses better during a holiday, by following a few simple tips.

One of the main worries holidaymakers face is of carrying money when travelling. While there is always the need to have easy access to money, there is also the risk of carrying cash, cards or travellers cheques. After all, being robbed is always a threat.

Modern payment methods such as debit and credit cards and the global networks that support them mean that travellers no longer have to risk carrying large amounts of cash when on the move. Instead, a small piece of smart plastic from your bank will open doors all over the world.

Payment cards also allow you to withdraw cash from ATMs globally in case you need it for purchases that have to be made in cash such as taxis and buses. Following are a host of other handy tips for money management:

Booking your holiday
The Internet is becoming an increasingly popular way of booking holidays as people become more confident about buying online. But taking responsibility for buying a holiday online also means it is important to make sure you are buying from a reputable travel company.

Buying online also means paying online using a debit or credit card. If this is the case, make sure the URL address begins with https where 's' stands for secure.

Also, always read the terms and conditions before booking. This often takes a long time but it is essential to avoid any issues later on.

Likewise, keep copies of the booking confirmation so you have evidence of what you have bought. Finally, while booking, it is always advisable to have travel protection or insurance, which can be the difference between mishap and disaster. It can help in case of travel cancellation, lost luggage, foreign medical problems and other unexpected situations.

Before you leave
In the rush to get ready, there are many small details that are often forgotten. Paying attention to these will mean difficult situations can be avoided when you are meant to be having a break.

Firstly, check the expiry date on your debit and credit cards to ensure that your payment cards are valid throughout your vacation.

Memorise your Personal Identification Number (PIN) and do not disclose it to anyone. Along with the important documents you carry, keep a record of your card number and bank contact information: this could be useful if you need to contact your bank.

Always look up the location of ATMs at your holiday destination. Check the available credit on your credit cards. For debit cards make sure there is sufficient funds in your bank account.

Make a note of your bank's lost or stolen number and programme it into your cell phone, just in case you need to report a card loss or theft.

Finally, check with your bank whether you have access to any emergency services when you are overseas such as emergency card replacement and cash advance in case the card is lost or stolen.

While on holiday
Holidays are all about relaxing, but sometimes we tend to become a little too relaxed when it comes to using credit or debit cards. So treat your cards as carefully as cash and make sure you carry them securely; money belts are often a good solution.

Always keep your eyes on your card while paying for goods and services to make sure your card details are not copied and check the information on the sales voucher before signing, an easy thing to forget. While using an ATM, shield the keypad when you are typing in your pin number.

Receipts or sales vouchers are the easiest way to prove payment, so make sure these are kept so as to check them against your statement when you return home.

Dealing with the dreaded moment
It might have happened or might happen to some of us; our wallet is stolen or lost when we are overseas. It is a dreaded moment and could ruin a holiday; but it needn't.

So what happens? In order to protect your money, you should report the emergency immediately so that your account can be blocked and your card can be reissued.

The following tips outline the procedure you should follow in different emergency situations:

If your card is lost or stolen in your country of residence:

• If you know the number, contact your bank at the earliest
• Your bank will immediately block the account and arrange for a replacement card
• If you are not able to reach your bank, you can call your card's global assistance centre

If your card is lost or stolen while you are travelling:

• Call your bank's global assistance hotline, which is generally listed on the card. Most banks have representatives available 24 hours a day, 365 days a year, who can offer assistance
• If you cannot reach your bank, then call your card company's global assistance centre
• If you follow these steps, you can request a replacement card

When calling these assistance centres you may be asked for the following information. Though it depends on the bank that issued your card, in general it's good to know these details when you make the call:

• The name of your bank
• The type of card
• The country where the bank that issued your card is located
• Your 16-digit credit card number or bank account number if it's a debit card
• Your name as it is printed on the card (if you are a secondary cardholder, you should confirm the identity of the primary cardholder)
• The address where your statement is sent
• Your home telephone number
• How the card went missing
• Other personal details as a security check that will confirm your identity

The above measures indicate that it's wise to keep a copy of the card's global assistance hotline and the account number safely. A little caution beforehand can really help when the unexpected happens.

- Courtesy: Visa International