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If you’re planning an international trip, getting a travel card in the UAE before you leave can save you money and make paying for things easier.
A travel card works like a debit card but has more benefits when you use it in another country. For instance, if you use a debit card overseas you'll pay forex fees, but a travel card allows you to pay in the local currency with reduced or no fees.
As with a debit card, you can only spend the amount of money in the account - unless you have an overdraft.
Find out more: How overdrafts work
You can use your travel card overseas to withdraw cash at ATMs and make purchases in the local currency. HSBC’s Global Money account and debit card also let you view, manage, spend, receive, and send money like a local, regardless of which country you’re in.
Explore: What is a multi-currency account?
Most debit cards that come with a current account allow you to withdraw cash and transact overseas, but may carry fees for this.
Using a debit card linked to a multi-currency account such as Global Money when traveling may help offset some of the fees. You can also manage, send and receive money in multiple currencies with the account.
If you’re worried about overspending while overseas, you can preload money onto a card, and top it up if necessary. You may not even need to open a bank account to get a prepaid travel card. Note that the exchange rate may be calculated when you load the card and can fluctuate. And you may not be able to use it for large transactions like car hire.
With a virtual account, you can access most of the features of a physical card through your smartphone. This makes it easier and safer than carrying a card. But remember there may be limits, such as being unable to withdraw cash at ATMs or merchants who don’t offer contactless payments. And you'd need to keep your digital wallet topped up with the relevant currency. For instance, if you’re in the US, add money to the USD wallet in your Global Money account before you spend.
Find out more: Digital cards and wallets
| Debit card | Credit card |
|---|---|
| Spend your own money | Borrow money to spend, repay later |
| Helps you budget as you can only spend what you have | Can spend up to your credit limit |
| Usually no annual fees | May carry annual fees and interest |
| Cashback and other rewards | Better rewards and benefits |
| Debit card | Spend your own money | Spend your own money |
|---|---|---|
| Credit card | Borrow money to spend, repay later | Borrow money to spend, repay later |
| Debit card | Helps you budget as you can only spend what you have | Helps you budget as you can only spend what you have |
| Credit card | Can spend up to your credit limit | Can spend up to your credit limit |
| Debit card | Usually no annual fees | Usually no annual fees |
| Credit card | May carry annual fees and interest | May carry annual fees and interest |
| Debit card | Cashback and other rewards | Cashback and other rewards |
| Credit card | Better rewards and benefits | Better rewards and benefits |
If you have both, it’s good to know when to use them most effectively. For instance, it’s cheaper to withdraw cash from ATMs using a travel debit card.
Both can be used for large purchases that can be split into installments, and both credit and debit cards offer protection and security.
Explore: HSBC credit cards
As places increasingly go cashless, you may want to think about how much cash you withdraw, and how much you’re likely to use while travelling.
It’s always helpful to carry some notes and coins - for emergencies, tips, and retailers or taxis that don’t accept cards. But you don’t want to be stuck with too much hard currency at the end of your trip. Also, depending on your card terms, it’s often cheaper to tap your card than withdraw cash from an ATM.
Find out more: Should you pay in local currency outside of the UAE?
If you’re travelling outside the UAE and plan to use your debit or credit card, remember to set up a travel plan first. This allows your bank to approve card transactions in the countries and on the dates you specify. If your itinerary includes a stopover and you fancy some duty-free shopping, include that destination too.
To create a travel plan, simply log on via your mobile banking app and follow the instructions. Travel plans are valid for a maximum of 90 days.
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