By James Dixon

The summer holiday season is fast approaching. As many of us are planning to travel overseas, we may be starting to think about what is needed for our trip. Passport? Done. Swimsuit? Done. Cash? Well…

Instead of carrying loads of cash, an international credit or check card is a safer and more effective way of making payments overseas. Many travelers recognize this, as there has been a marked increase of overseas card use in lieu of cash, traveler’s cheques or other payment methods.

According to Bank of Korea, card spending by Koreans traveling overseas for business and pleasure during the first quarter of 2011 increased by 18 percent compared to the same period last year, confirming the greater convenience and security this payment method provides.

Unlike most local credit or check cards which are not accepted abroad, an international-branded card, such as Visa, can be used globally. While your Korean Won might not be recognized everywhere, your international card is accepted in even remote areas of the world. The same applies to international tourists visiting South Korea who may have currencies that are difficult and expensive to exchange.

Besides being able to make a purchase, there are several other benefits to using international payment cards when traveling. Let’s look at a few:

International payment cards are easier to carry and far more convenient. There are no hassles if you do not speak the local language, and you can rest assured that you are receiving competitive currency exchange rates whenever you use an international credit or check card. Instead of taking the time to figure out the value of each foreign coin or bill, you can pay with a single swipe of your card.

A tip is to make payment in the local currency, as opposed to Korean Won, when offered the choice by overseas merchants. You’ll usually receive a more favorable exchange rate.

It is also much faster. On average, international card transactions are completed within seconds. Additionally, there is no need to wait in long lines or be restricted by a bank’s operating hours if you were to buy traveler’s cheques or exchange cash.

International credit or check cards are safer as there is no need to carry lots of cash when all you have to do is carry your card. If you do need local cash, you can use your international card to access cash from a local ATM, limiting your withdrawal to the amount of local currency needed.

Using electronic payment cards for overseas transactions can also minimize personal risk. Unlike cash, if the card is stolen, it can be replaced. Also, there are multiple layers of security to prevent, detect and resolve any unauthorized use of your card information.

Moreover, you can count on a reliable network around the clock with an international payment card. Transactions are electronically tracked and recorded, so you easily check how much you spent and where you spent during your trip. It also makes it much easier to solve a dispute about a hotel bill or to report any unauthorized charges on your card.

Before heading off to the airport, make sure to notify your issuing bank that you will be traveling abroad and to check if your card is an international brand for overseas use. Some debit cards have a “domestic use only” mark below the card logo and will not work abroad. In this case, replace your old debit cards with a new one, which can be used in overseas.

Most importantly, traveling with an international payment card allows you to relax and enjoy your holiday. Let your biggest concerns be about what to eat or see next; the last thing that you should be feeling on your vacation is stress. Prepare in advance to have a safe and enjoyable vacation. Bon voyage!