How to pay - Cash or Credit Card?

GlobetrotterGirl

How safe is it to use credit cards in India? I assume reputable, high end hotels and shops should be ok or should I always stick with cash?

I have also heard some scams and tricks with ATMs where numbers are copied.

What do people generally do?

devorenm

Visa and Mastercard are generally very widely accepted in India and ATMs are almost as plentiful, even in very rural parts of India. My only caution about using Visa or Mastercard is that many places will charge you a surcharge (usually 3 percent) for using your credit card, this is to cover the fee they pay to the credit card company. You should also be aware of any fees that your bank back home may charge for doing foreign currency coversions and using your card overseas. My personal preference is to take AMEX Traveler's Checks (which I get for no fee from AAA) and then exchange them for local currency as needed. The exchange rate is gernally 3-4 percent higher than exchanging hard currency. I did use my credit card on a few ocassions when I didn't have local currency (in the airport etc) with no problems. I think you will be fine with a major credit card (Visa or Mastercard) but it's really up to your personal preference. I would carry a few thousand RS in cash though just in case you need to get food, lodging, etc and they don't take your plastic.

-Nate

PS: Be very careful with your passport when changing your money, the changer will usually make a copy of it to keep with your checks (no worries this is legit) but it's easy to take your money, count it, and walk out leaving your passport on the counter. It will give both you and the Indian money changer a lot of heartache.

Hal

I pay by credit card at the higher-end hotels ($75-150 per night) and cash everywhere else. There are lots of ATMs.

Make sure you tell your credit card company you are going to India. Sometimes they suspend the card if a charge appears from a foreign country.

zoltan

I agree with hal2004.

Use the card for bigger purchases for places like hotels and use t/c's for the rest of the journey (with some local currency for emergency money).

Cheers
Zoltan

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GlobetrotterGirl

Thanks for replies. I am also concerned about credit card scams. Is this prevalent?

wonderwomanusa

I've only used my credit card a few times in India -- like hal2004 and Zoltan, only for more expensive hotels. I've never had a problem with it.

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shashank.aggarwal

I have been using cards for several years and fortunately have never been scammed. The only time I was double swiped was this weekend itself at a flower shop, and i got a call within couple of hours informing that the card has been swiped twice and I can collect the amount from them.

And cards are used by Indians all the time from small, medium OR large purchases. So I would say just follow the same precautions as you would anywhere and you can freely use your card.

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Travelogue - Around India

bruce3404

No problems using CC in India, but I also agree with Hal and Zoltan; I would only use it a large international hotels. It pays to shop for a credit card that has a low foreign currency transaction fee. Visa automatically charges a 1% fee on top of the interbank rate (which is the best rate and is based on millions of dollars transacted and always way better than any rate you'll get on the street), but beware of cards that add additional fees up to 3%. I have a card that I specially use overseas as it has no additional foreign transaction fees. But I generally just use my bank debit card at ATMs for cash; my debit card charges no fees per withdrawal and even "eats" the fees that any individual machine in the world might charge, thus I only pay the 1% conversion fee. It pays to shop around if you travel much.

Nick-H

Credit card scams are no more prevalent in India than anywhere else in the world, and the same rules and precautions apply. You may find that, out of a bunch of small traders, only one of them has a machine, so your guy will disappear down the road with your card for a few minutes. I've never been scammed, and the machines are much more common these days in many shops.

I've experienced two mistakes with card charging in the past few years:

--- being charged 1% of the bill because the guy forgot to type two zeros at the end of the number.

--- being charged ten times the amount. Whilst that one would have been a real pain to a traveller, debits to our account here get informed to Mrs N's mobile phone, so we were soon back in the shop getting it sorted. It was a big shop that we know well, and there was absolutely no question of fraud. The individual who made the mistake could not possibly have profited by it.

It taught me to stop signing things without checking carefuly first!

GoanCanuck

Which card is that? Could you please share the details?

obione980

I also use a card which charges no foreign transaction fees whatsoever - It's a 'Wizard' Clear Advantage Mastercard - available only in Australia, though Wizard is owned by the USA's GE Money.

GoanCanuck

I had a look at the website for this card. Although it does not charge a foreign currency fee and a cash advance fee there are absolutely no features and benefits like trip cancellation insurance , car rental insurance, lost luggage insurance available through this card. Basically a no frills card meant mainly for those making online purchases or having to make a cash withdrawal while travelling outside Australia.

obione980

Yep! That's just what it is. No annual fee at all. I 'load' mine with cash before I leave the country - so pay no interest either.
Travel Insurance covers all the other stuff.