Disadvantages of using Visa card in US

Disadvantages of using Visa card in US

The banking systems differs greatly from one state to another. US is known as one of the most dynamic developers of new financial products. The country develops new attractive offers each day.

US financial sector brought into life credit cards, debit cards and secured credit cards. However, such financial products were differently adopted around the world. So, even if you have a Visa card, but it was issued in Europe, you will face some problems when paying by it in the United States.

There are certain reasons why users have some difficulties when paying by Visa in US:

  • The banking security system is more advanced in US. The majority of cards in the US are contactless. Europe, though, still prefers to use classic PIN code security mechanism. So, when a person comes to US with a VISA card, he can have some difficulties if he does not have a contactless plastic.
  • High exchange rates. Visa is an American company, but it has its offices in Europe. If your Visa card was issued in Europe, and you pay by it in US, you will pay commissions due to considerable exchange rate fees. When you pay by Visa, you will be asked to choose the currency to pay in. It is better to pay in hard currencies when you are in the foreign country. These currencies are US Dollar and Euro. But when you pay in US, you have to choose US dollars only. That will keep exchange rate charges as low as possible.
  • The majority of credit and secured credit plastics by Visa offer good cash refund on purchase. So, when the client buys products or services, he gets a refund into his plastic in the end of the year. However, this rule hardly works if your VISA card was issued in Europe, but you pay by it in the US. So, when the client uses his European card in US, he simply loses money.

These are the major problems the person can face if he pays by Visa card in the United States. In order to avoid problems before going to US, it is very advisable to consult the banker. He will explain what additional charges the client will face if he pays by the card in US.


What A Client Has To Remember About Using Plastic In US

There are several tips that will help you not to lose money when paying by plastic in US.

  • Do not withdraw cash. If you do so, you will pay additional charges. So, it is better to pay by plastic directly.
  • Do not use cards for very small payments. Your bank can charge you on every transaction, and you can be charged the commision even for buying a chewing gum. So, use plastic to pay for big purchases.

Use these tips to save money and avoid commissions when paying by VISA card in US.


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