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An American in Ireland by The Yank

Credit card choice is important for your Irish vacation

Posted on Tuesday, March 02, 2010 at 02:49 PM

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Back in May I advised any prospective visitors to Ireland that they should use their debit and credit cards rather than come with the traditional traveler's checks. That advice still stands, but it may have to be revised if the fears of NY Times columnist Ron Lieber are realized.

Lieber says that bank charges on foreign credit card transactions could rise following a change in American law that has restricted credit cards from charging/raising other fees. Lieber says that 2009 Credit Card Act, which only came into effect last month, stops banks from charging a fee when customers exceed their credit limit. The new law also restricts any application or annual fees the banks levy on customers with "poor credit histories."

One area untouched by the new rules is foreign currency exchanges. Currently these charges can be as high as 3% on top of every foreign purchase, but, Lieber says, there is no reason that banks couldn't raise those charges even further.

Lieber recommends (as do I) that customers should shop around for a credit card before they travel. Some big banks - Capital One, for example - and many smaller banks and credit unions are only adding the 1% Visa/MasterCard charge on foreign purchases.

I don't know if or how this new law might affect debit/bank card withdrawals. Although it depends on how much money you need and what your bank charges for using ATMs, using the machines is probably the best way to change your money in Ireland. Irish banks don't charge people with American bank cards for using their ATMs.

Of course, there's one more consideration before you choose that credit card for your trip to Ireland. If you're planning to rent a car, you should look for a card that covers the insurance on your rental car.

That's easier said than done because very few cards will cover renting a car in Ireland. However, the cost of the insurance can be astronomical - around $20-25 per day. Therefore, spending time researching, seeing if you can find a card that allows you to waive the rental company's CDW is a good idea.

Shop around. Get a good card for your car rental. Get a good card for all your other foreign currency transactions. Use your debit card. There is no good reason to make your Irish vacation more expensive than it has to be.

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TheYank | Mar 30, 2010, 01:51 AM EDT

morganink, That's good to know. Thanks for that.

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morganink | Mar 21, 2010, 11:34 AM EDT

World Mastercard does cover the rental car insurance in Ireland-- call ahead; you can get a letter from the company to bring with you (though no one asked for it or even wanted to see it).

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Ajreaper | Mar 04, 2010, 11:02 AM EST

Yank- thanks very much. The good time is pretty much a given and the weather, well if I cannot control it I'll not worry about it. After all how often will get the opportunity to get rained on in Ireland? ;)

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TheYank | Mar 04, 2010, 10:21 AM EST

That last sentence should read: I touched on this topic here & here.

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TheYank | Mar 04, 2010, 10:20 AM EST

ritmomente, As far as I'm aware retailers should all be aware that a credit/debit card does NOT have to have a chip to be valid. In fact, the equipment that they use to accept the PIN and print your receipt can also print a typical slip requiring a signature. However, I know many retailers do exactly as you've described.

I touched on this topic & here.

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TheYank | Mar 04, 2010, 10:00 AM EST

Ajreaper, I hope you have good weather and a good time.

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Ajreaper | Mar 03, 2010, 11:59 PM EST

Very timely advice as I'll be in Dublin in 10 days!

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RosemaryKelly | Mar 03, 2010, 09:28 PM EST

Thanks for the information and I will shop around if and when I ever get to Ireland!!!!

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StevieWeavie | Mar 03, 2010, 07:46 PM EST

Hmmm, very interesting. This is good information especially since I really would like to visit Ireland someday. Credit Card Companies are out of control in many cases. Some of the comments are very helpful also. Thanks for keeping us up to date.

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ritmomente | Mar 03, 2010, 01:11 PM EST

We have a Capital One card which does not (presently) charge foreign transaction fees. However, the problem with the card is that it does not contain the chip that nearly all Irish credit cards (and merchants) utilize. Also, only about 50% of the merchants have swipe readers. Upon contacting Capital One, they have no plans in adding chips to the cards produced here. So the only card I know to not charge foreign transaction fees only works 50% of the time!

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TheYank | Mar 03, 2010, 12:07 PM EST

{This is my third attempt to post this comment} DLW12183, that's excellent advice to call the credit card company in advance of your travels. Last year I had a situation where my card had a hold on it because I was shopping outside my normal area. I had to call the company to get them to unfreeze my card. However, as you say, there's no guarantee that the credit card company will remember your helpful phone call.

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TheYank | Mar 03, 2010, 11:35 AM EST

DLW12183, That is good advice to call your credit card company in advance. I had an experience last year in America where suddenly I was told my card was refused and it was because the card company thought something was up with all those purchases outside my normal area. However, as you point out, there's no guarantee that the card company will remember your call. Can be annoying.

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haasny007 | Mar 03, 2010, 11:04 AM EST

You best bet is still getting cash with your ATM card at the ATM machine overseas, of course also depending on your bank. No fees on E*Trade and Charles Schwab checking accounts. Also no FX fees on Capital One credit cards.

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DLW12183 | Mar 03, 2010, 09:44 AM EST

Good advice I agree BUT take cash (euros), even US Dollars to convert. Do not take $100.00 bills as the Banks won't accept them. I know as the Bank of Ireland would not convert mine as they had an absolute rule against them in Sept. 2009. Watch out for holds on your credit cards for overseas charging. I had it happen on both Master Card and VISA even though I called in advance and told them I would be in Ireland.

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patrickesq | Mar 03, 2010, 09:25 AM EST

Good advice.

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