Notify Your Credit Card Company Before Traveling: Importance, Recommendations, and Tips
Many people are unaware that it is crucial to inform their credit card company about their upcoming travel plans. This article aims to explain why informing the credit card company is important, provide recommendations on when to notify them, and offer tips to ensure a smooth travel experience without any interruptions.
The Importance of Travel Notifications
Travelers should inform their credit card companies about their upcoming trips, especially if they plan to spend more than usual or use their card in a different location or country. Unexpected and large charges that deviate from your usual spending patterns can trigger the credit card's fraud detection system, which may temporarily freeze your card. By informing the credit card company that you are traveling, you help them understand the purpose of the increased spending or out-of-state transactions, reducing the likelihood of your card being temporarily frozen.
When to Inform Your Credit Card Company
While specific guidelines can vary, it is generally a good idea to reach out to your credit card company a few days in advance of your trip. American Express (Amex) does not necessarily require travel notifications for frequent travelers. However, other credit card issuers like Visa and Mastercard (MC) do. For instance, if you live in Colorado but your card is charged from Cleveland, Ohio, it's a good idea to inform the credit card company to avoid any confusion or potential card freezes.
For international travel, it is essential to notify your bank at least a few days in advance. Credit cards may not be honored in different countries if the bank is not aware of the travel itinerary. This step is a precautionary measure to ensure your card works seamlessly in foreign territories.
Personal Experiences and Tips
One memorable experience involves an American Express travel notification issue. The charges for a funeral buffet in California were significant, especially for family members who were traveling from out of state. Normally, such large and unusual charges would set off the fraud algorithm's alarm. However, given the circumstances, the charge was justified as it was a memorial service. The company, being a banker, understood the situation and did not freeze the card.
Similarly, a Visa card was frozen at a gas station in a different state. In this case, the credit card company's fraud detection system suspected a stolen card. Upon contacting the company, the issue was resolved quickly to allow the card to be used again. This experience highlights the importance of keeping credit card companies informed about your travel plans to avoid unnecessary freezes.
Legal and Regulatory Context
The US Supreme Court's Marquette Decision in 1978 allowed banks to offer the same interest rates guided by the state in which their card division is based. This decision effectively made credit cards a national financial device. Travelers should be aware that they do not need to notify their credit card company since the Marquette Decision does not explicitly require such a notification for domestic travel. However, for international travel, informing the bank is crucial to avoid any issues with card honorability in different countries.
TL;DR: Always inform your credit card company about upcoming trips to avoid freezing of your card. This is particularly important for Visa and Mastercard cardholders. For international travel, the bank must be notified in advance to ensure the smooth usage of your card.
Disclaimer
The author of this article is a Researcher, Scholar, Credit Consultant, and Consumer Advocate. The author is not licensed to provide legal or financial advice. Please consult a licensed professional before making any legally binding or consequential decisions.