Can I Use My Credit Card Abroad?
Can I use my credit card abroad? You know that credit card are vastly used across the United States and nearly all merchant establishments accept credit cards. However, if you are traveling abroad, you need to check out the place before going. You might be in for some surprises.
In many countries the Visa and MasterCard networks have merged so you can use either one of the cards in those countries. However you may not be able to enjoy the same service when you want to withdraw currency from the ATM. You might be able to withdraw on the Visa but not necessarily on the MasterCard. So you might want to carry both your cards while traveling.
There are certain countries that accept both the cards but they have not merged services no you will be required to use both as the case may be, according to the establishment. The Visa and MasterCard are by far the best accepted throughout the world and they are best used while traveling abroad. AmEx and Diners Club are popular in the United States but not so in several countries elsewhere.
Ensure that you check out with your contacts in that country as to what the situation is or you could even go online and garner all the information you need on the credit card acceptance across the world. Beware, there are even some countries that do not accept any credit cards! Yes indeed. So the only way out there would perhaps be to carry cash or travelers checks, if that is accepted that is. However, credit cards are used in most parts of the world today and those places where you cannot use credit cards are not so many.
There are certain countries, which are notorious for credit card fraud. So you have to exercise extreme caution while traveling to those countries and you must try to avoid credit card payments as far as possible. You are bound to get tricked into parting with several dollars if you are not careful or even if your credit card company is not watchful. You might find yourself saddled with a bill that never saw you making the purchase.
When you are traveling abroad, always leave the credit card numbers and a photocopy of the cards along with their phone numbers at home. This will enable you to lodge a complaint in case of fraud or a theft of your cards while you are traveling. It is a precaution well worth taking.
Insurance And Ethics
Insurance contracts are often seen as a form of gambling. That is because they appear as a type of wager that takes place over the lifetime of the policy. Basically the insurance company is willing to bet that you and your property will not suffer the loss insured against. In exchange for making this bet, and taking on the risk, the receive your premium. If they win the bet, they keep the premium, if they lose, they make the payout. In this sense, they are often compared to a type of long term financial casino.
The difference between your premium amount, and the amount the insurance company will have to pay out if the loss occurs, is simply the odds the insurance company is getting for taking on the bet. It’s just like going to the horse races and betting on a horse that pays out 10 to 1.
This view of insurance has led to a number of people and religious communities disapproving of insurance because of its similarities to gambling. Among those groups that avoid insurance are the Amish and Muslim communities. What these people do instead is create a system of what is known as social insurance. What this means is that if there is a disaster and someone suffers a heavy loss, then the whole community will step forward and help them to deal with their loss and rebuild. While this system is very simple, it has the potential to be just as effective a safety net as insurance. However, it requires that the community actually does step forward and help those who suffer from disasters. This means that it is more successful in small closed and closely knit communities than in large modern societies.
Social insurance systems therefore are not always effective. Often the community that is supposed to adopt it is not suitable. Also, in very large disasters the system can break down as a small community will not be able to rebuild itself completely without outside assistance. This is why larger modern insurance systems can be more robust. However, in extremely large disasters, modern insurance systems can also run into difficulties. This is witnessed by the fact that it is impossible to insure against certain risks such as floods and earthquakes. This is because the damage would be simply on too large a scale for the insurance companies to cope with.
There are other ways in which insurance doesn’t follow the gambling model. For instance insurance companies seek to reduce the risk of the loss occurring constantly, for instance by requiring the installation of fire alarms, or by reducing the loss if the insured against event does occur, for example by providing rehabilitation to accident victims. Therefore insurance is like a gamble in the reward and risk elements, but other elements are different.