Read the fine print
WHY YOU SHOULD No one likes to do it, which is all the more reason for doing it. Many banks may offer benefits and rewards that sound attractive – and they may very well be – but you won't know if they are for you until you have learned all the details.
CASE STUDY HSBC India states on its website that holders of the Signature credit card would be entitled to two domestic flight ticket vouchers of INR 500 (US$8) each, along with 10,000 reward points. But according to the terms of conditions, cardholders would have to accumulate a single-year spending of INR 400,000 (US$6,543) or more to qualify.
Check for foreign transaction fee waiver
WHY YOU SHOULD When travelling overseas, merchants may ask you if you would like your credit card to be charged in your home currency or the local one.
CASE STUDY Check to see if your card offers a waiver of the foreign transaction fee. If yours does, then the answer is simple. Choose to be charged in your home currency, as there would be no interest involved and the exact amount would be shown on your monthly statement, making it much easier to read. Credit cards that offer foreign transaction fee waiver include those by Capital One. If your card does not offer such benefits, check beforehand to see which conversion charges you a lower fee.
Don’t underestimate the smaller brands
INFO Both Diners Club and JCB (Japan Credit Bureau) may not get the same attention as their more well promoted counterparts, but there’s more to them than meets the eye.
CASE STUDY JCB for instance is accepted by all UnionPay and Discover Network merchants in China and USA respectively, which represent very extensive coverage. Diners Club customers tend to be affluent individuals that travel frequently, and therefore the card privileges may include airport lounge access, access to the Diners Club Travel hotel booking portal, and VIP airport services.
www.jcbusa.com and www.dinersclub.com
Shop for the best rates
WHY YOU SHOULD Interest rates vary bank to bank, and the margin can be significant.
CASE STUDY Similar to most major banks in Singapore, DBS implements a finance charge of 24 per cent per annum (minimum SG$2.50 per month) in the event that your statement is not repaid in full. However, Citibank's finance charge for its Citi Clear card is significantly higher at 28 per cent, with a minimum monthly charge of SG$3.
www.dbs.com.sg and www.uob.com.sg
Make use of airline-affiliated cards
WHY YOU SHOULD These cards offer tailored benefits related to the designated airline.
CASE STUDY The Qantas Reward Premium American Express card by National Australia Bank allows users to earn 1.5 Qantas points for every AU$1 (US$0.9) spent on eligible purchases, and gain a complimentary Qantas frequent flyer membership.
Other credit cards might offer air mile conversion but at a cost. Standard Chartered Hong Kong offers mileage redemption services through its 360 Rewards programme, but charges HK$300 (US$39) for each transaction.
www.nab.com.au and www.sc.com/hk
For more tips on using your credit cards wisely, stay tune to the upcoming January/February double issue of Business Traveller Asia-Pacific.
Clement Huang