Credit card

Travellers are increasingly finding their credit and debit cards frozen as banks, building societies and credit card companies become more proactive in targeting fraudsters. Many experts now say it is more likely than not that customers will find themselves unable to use their cards while they are abroad.

Getting out the plastic in a holiday resort immediately shows up to financial institutions as an ‘abnormal’ spending pattern, triggering a request for the shop or restaurant to phone through to verify the details. Many merchants chose to simply decline the transaction, as it can take too long to check every card. Once this happens the card may then become completely frozen to all subsequent transactions. It may even be swallowed by an over-zealous cash machine.

While travellers often believe that all they need to do is inform their banks of their plans before setting off, there is no guarantee that it will make any difference. Many of the main high street banks have differing policies on how they ask for and record this information, with some institutions saying there is no point at all in letting them know in advance. Their view is the bank cannot relax and turn a blind eye to significant transactions while a customer is abroad, after all, they may have had their bag snatched at the airport.

The only consistent advice from all financial institutions is that customers should make sure that they have registered up-to-date contact mobile phone contact details, so contact can be made immediately that a problem is flagged. Banks, building societies and credit card firms do usually try to ring a customer when they become suspicious about a transaction, so if they have your correct details it can smooth everything out straight away. It helps too to make a note of your bank’s 24-hour contact numbers to get in touch immediately that any difficulties arise.

Do though check the policy of your individual bank, building society or credit card company, so that if action needs to be taken, it can be taken in good time and not in those vital few moments when you are leaving for the airport.

As a guide, the following providers advise that it is worth a call before travelling:

Alliance & Leicester/Santander

Barclays

Barclaycard

Halifax/Bank of Scotland

HSBC

Lloyds TSB

MBNA/Virgin

Saga

The following institutions say a pre-travel call will make very little difference:

Capital One

Egg

Nationwide

Nat West/RBS

Tesco

Written by Teena Lyons, this article was published on July 21, 2010. Teena's opinions are her own and for general information only. Always seek independent, professional financial advice.