Credit Card-To-Currency Services

You may hear merchants advertise that you can pay in your home currency when making purchases abroad. But that convenience comes at a cost. 상품권깡

A credit card payment processor can charge a dynamic currency conversion fee on top of your foreign transaction fees. And your card issuer may also add a currency exchange rate markup on top of that.
Secured Credit Cards

A secured credit card is an excellent tool for consumers who are new to credit or looking to rebuild or repair their credit. They work very similarly to unsecured credit cards, but they typically require a refundable security deposit that acts as collateral in case you fail to make payments. The security deposit amount varies by lender, and is generally equal to the credit limit on the card. If you go into debt with a secured card, your lender will “dip into” the deposit to cover your balances. If you manage your card responsibly and close it with a zero balance, your deposit will usually be returned.

Most credit card issuers that offer secured cards will report your payment history to the three major credit reporting agencies (Experian, Equifax and TransUnion). If you use the card wisely, it may help boost your credit score. But, make sure to check with the credit card company before applying to ensure that they do so.

Secured credit cards are a great choice for people who have poor or no credit because they offer easier approvals than traditional unsecured cards. And, if you are careful to pay off your balances in full each month, your positive credit behavior may eventually help you graduate to an unsecured card with a higher credit limit.

If you are thinking about getting a secured credit card, be prepared to provide information such as your name, address, Social Security number and employment details on your application. In some cases, your card issuer may also perform a credit inquiry with other lenders to evaluate your creditworthiness before making an approval decision.

The best secured credit cards have features that promote responsible financial habits, like perks that teach you how to use credit and payment schedule flexibility. They may also have lower fees and interest rates than unsecured credit cards, especially for people with bad or no credit.

If you decide to open a secured credit card, be sure to review the fine print carefully to ensure that you’re comfortable with the terms and conditions. Then, follow the card’s usage guidelines and don’t exceed 30% of your credit limit.
Debit Cards

Debit cards are the same as credit cards in that they connect to a person’s bank account, and both allow people to make payments online or in stores. However, unlike credit cards, which are backed by lines of credit that can go up and down, debit cards draw money directly from the affiliated checking account. As a result, they’re often regarded as more secure and straightforward, with less risk of fraud than credit cards.

Generally, people can open debit cards by opening a checking or savings account with a bank, which typically requires personal information such as name, address and social security number, along with a photo ID like a driver’s license or passport. Individuals under the age of 18 can also have an adult serve as co-owner on a debit card.

In addition to being able to use them anywhere that accepts Interac, most debit cards can be used to access cash at affiliated ATMs. As a result, they can be particularly convenient when traveling abroad. However, some debit cards charge fees for overseas transactions, including a currency conversion fee and a foreign transaction fee.

Currency conversion fees are charged by the card network when a transaction is made in a different currency, and can add up to 7% of the total cost of the purchase. However, it’s important to note that these fees are not the same as foreign transaction fees. According to the Consumer Financial Protection Bureau, a foreign transaction fee is charged by the card issuer and usually includes both a currency conversion fee and a foreign exchange rate markup.

To avoid these fees, consider purchasing in the local currency when possible, or using a currency conversion app to get an idea of what you should expect to pay. Credit card networks such as Visa and Mastercard offer negotiated exchange rates that are close to wholesale market prices.

Another option is to decline dynamic currency conversion (DCC), which allows merchants to display the price of a purchase in your home currency at the point of sale. While this can help you avoid doing the math, DCC usually comes with a poor exchange rate and additional fees that can be more expensive than simply making your purchase in the local currency.
Prepaid Cards

Prepaid cards are plastic that can be loaded with funds to pay for purchases. They are often associated with the major card networks (Visa, Mastercard, American Express and Discover) so they can be used everywhere debit cards are accepted, including online. Prepaid cards can be used as a way to avoid overspending and to limit debt, because the money on the card is only accessible once the card is loaded with cash or funds transferred from another source. They are also popular with young adults trying to establish credit or develop financial discipline, because they generally require a deposit of funds before making purchases, which prevents them from overspending.

Like credit cards, prepaid cards can have fees, but unlike credit cards, regulations do not force the disclosure of these upfront, so they are sometimes hidden in fine print. These may include monthly fees, transaction fees and even reloading fees. Some cards also have ATM access fees, with some cards offering free withdrawals at certain networks or branded bank ATMs and others charging fees for these services. Some cards also offer direct deposit and bill pay options, but these are more common with reloadable credit cards rather than prepaid cards.

These cards can be a good alternative to credit cards for people who have bad or no credit and are unable to qualify for an unsecured card, but they are not as good for building credit as secured credit cards. They are also a good choice for parents who want to teach their kids how to use plastic responsibly, as they give children a tangible limit that they can easily see and stick to. Prepaid cards can also help consumers with bad spending habits by giving them a way to spend only the amount of money that is actually on the card, a helpful feature for those who struggle with impulse buying. They can even be a good option for employers, who can load company-branded prepaid cards onto a mobile app so employees can make payments at a glance without having to hand out their personal card details.
Travel Cards

Travel credit cards are a great tool for business owners and employees who travel frequently. These cards typically offer rewards in the form of points or cash back, which can then be redeemed for travel through the card issuer’s portal. Many travel cards also offer perks such as airport lounge access and TSA PreCheck or Global Entry. These cards can be an effective way to track and monitor business expenses, while making it easier to spot trends and red flags.

The majority of travel cards pay in a currency called points or miles. These currencies are generally redeemable for travel, but they can also be redeemed for other things, such as gift cards. The currency of a particular card may be determined by the airline, hotel or other travel provider with which the card is affiliated. Additionally, some travel cards have a cap on the amount of dollars or miles a person can earn in a given month.

One advantage that travel cards have over purchasing cards is that they are often not reported to consumer credit bureaus. As a result, if a person pays the balance on time and in full, these cards can help protect personal credit lines. However, it’s important to check with the card issuer to confirm that the card does not report activity to the credit bureaus.

While a travel credit card might seem like a great tool for frequent travelers, it’s important to remember that they do come with fees. In addition to the joining and annual fees, some travel cards charge a foreign transaction fee when you use the card abroad. This can add up, especially if you’re traveling to several countries in a single trip.

Another important consideration is the amount of spending required to earn a sign-up bonus on a travel card. Some cards offer new cardholders a chance to earn a large number of bonus points by spending a certain amount in the first few months of having the card. Make sure that this spending requirement is realistic for your budget and travel habits.