When you travel overseas for business or vacation, you may require some cash. You should not use your credit card for such withdrawal at all. You may be subject to high fees and conversion charges and secondly, fraudsters may take advantage.

If you withdraw local currency by using your credit card, you are subject to interest and other charges from the moment you withdraw. Remember, there is nothing like 'interest free period' for such cash withdrawal. Interest will be applicable immediately on withdrawal. In addition, there may be some transaction fee as well as fee for conversion of currency. All of these will make a big total. So you should avoid use of credit card for such withdrawals.

Then there is another danger. While you are withdrawing cash from an open place like shopping mall, there is a possibility of many people watching you. It is most common fraud worldwide to misuse the secret information they get. People will capture your pin by looking over you or standing nearby. The fraudsters will then try to steal your wallet. If they are successful, their actions will be very swift thereafter.

Generally business travelers as well as people on vacation will take some time to return back. The fraudsters will take advantage of that and empty your cards within no time.

The logic they use is very peculiar. If they have captured one pin number from you, they will try the same pin for all other cards in your wallet. Generally, people will keep the same pin for all their cards. By the time you go back, you are shocked to find almost all your money from debit and credit cards has been taken away.

For the credit cards you have at least the protection against misuse. So after making a complaint of theft your liability will be limited to $50. However for debit cards, there is no protection available. There is no insurance cover for their misuse. And the worst thing is, they are linked with your current or savings accounts. So if you don't have the contact numbers of your bank with you, you travel becomes a nightmare.

It is very important to keep your pin number safe. This is true for your domestic use also. Secondly, keep contact numbers of your bankers readily available. In case of such emergencies, you can request them to suspend all subsequent transactions. And most important, never use the same pin number on all your cards. That is too dangerous.

Traveling abroad with 'loaded' credit cards is everybody's dream. But are you aware of the hidden dangers? By the time you come back, you may have shock of your life to find all your money taken away! Ultimately, the trip may leave a bitter test. How to avoid it? Well you can do it easily. Chintamani Abhyankar provides useful tips and advice on using your cards abroad.

Chintamani Abhyankar, is an expert in the field of finance and taxation for last 25 years. He has written many books explaining inside secrets of the magic world of finance. His famous eBook Stop donating your money to IRS http://www.planningyourtax.com/ which is now running in its second edition, provides intricate knowledge and tips on personal finance.