News

Czechs use credit cards during holidays abroad increasingly often

The frequency at which Czechs use credit cards for making payments at retailers and for cash withdrawals from ATMs when travelling abroad significantly increases in the period of the summer holidays. This is also confirmed by the latest data from Citibank Europe plc, which suggests that the number of foreign transactions through Citi credit cards almost doubled (up by 90%) in July 2013 compared to the average number of transactions executed through credit cards per month in the first half of this year. The overall volume of these transactions increased by more than one half (up by 55%). A similar trend was also visible in August this year. Citibank’s share of Czech clients’ foreign transactions executed through credit cards is about one fifth of the Czech market.

We pay by credit cards abroad more frequently, and also use cards for smaller payments
The popularity of using credit cards abroad is mainly attributable to the convenience of paying by credit cards or contactless payment stickers and also to higher security, because unlike cash, clients do not lose their money when they lose their credit card. “Compared to previous years, in particular the considerable increase in the number of transactions executed through credit cards outside the Czech Republic over the summer months is very apparent. The volume of such transactions rises more slowly. Czechs also do not think twice about using credit cards for smaller payments, including those at supermarkets and restaurants or admission tickets for sightseeing tours,” says Milan Řezníček, Credit Card Manager at Citibank. The transactions on Citibank credit cards abroad average at CZK 2,136.

The long grace period is an advantage
When using their credit cards clients profit from the long grace period, which is up to 55 days for Citi credit cards. This makes it possible for them to draw money from the bank within the defined credit limit and, subject to timely repayment of the whole outstanding amount during the grace period, even completely without interest. In addition, Citi credit cards support the use of attractive up to 25% discounts under the City Club program at partners specializing in everything from gastronomy, shopping, sport and travel, to health & body care. The Hotel Privileges program provides Citibank clients with exclusive privileges in a number of hotels throughout the world.

“It is quite normal to pay by credit cards in other countries. There are moments when tourists cannot do without them, for example, when renting a car in many places. Credit cards inspire confidence because they imply that the cardholder is a creditworthy client well-tested by his bank,” adds Milan Řezníček.

Because of the better rates of exchange, it is generally more advantageous to use credit cards for payments outside the Czech Republic than to exchange cash for holidays at bureau de change offices. At the same time, the risk of credit card holders losing their money due to card loss or theft is significantly reduced. Credit cards can also be immediately disabled from abroad, which prevents their potential abuse. You can also take out optional travel insurance on your credit card, and therefore do not have to take out one-off cover before you travel abroad; travel insurance on the card can already be arranged in the application for a credit card.