Eager to sign up affluent, free-spending business travellers, banks around the world have been rolling out a steady stream of new credit or charge cards, paired with some very tempting promotions.
For example, British Airways and Chase have
played cat and mouse with frequent fliers over the last year, with an
on-again-off-again promotion that offers up to 100,000
miles to those who sign up for their co-branded credit card. American
Express has offered bonuses of up to 50,000 reward points for signing up for
its benefit-laden Platinum
Card, and this week the corporate version of the card added free inflight wi-fi in the US to its list of perks.
Tempted? Before you make the switch and sign on
the dotted line, be sure you do your homework and consider the following
criteria. (Note that offers below change frequently and may be specifically
targeted to residents of certain countries.)
You get what you pay for — which is not much — when
using cards with a low or no annual fee. So for frequent travellers, it’s
usually worth paying a premium for benefits that can improve your travel
experience. For example, the American Express Platinum fee is a steep $450 per
year, but the card comes with benefits such as worldwide airport lounge access across
multiple airlines. The new United Mileage Plus Explorer card from Visa
currently offers 40,000 bonus points, waived baggage fees and two United Club
passes for $95 per year.
If you don’t have a corporate travel agency to
rely on, choose a card that offers travel planning services or can help get you
out of a jam — like when you get bumped from a flight or walked from a sold out
hotel, or can’t get a reservation at a hot new restaurant. To maximize benefits
like waived baggage fees, airport lounge access or early boarding privileges, the
card you choose should be affiliated with the loyalty program of the airline or
hotel chain you use most.
Frequent international travellers should
consider the rapidly growing number of cards that have nixed those irritating 2%
to 3% “foreign transaction fees”. While 3% may not sound like much, if you are
spending $50,000 a year on travel then you are paying $1,500 a year in
Many cards offer outstanding sign-up bonuses in
the form of airline or hotel loyalty points. While these offers are tempting,
read the fine print to determine what you must do to get the bonuses — most
require a significant level of purchases in a short period of time to qualify.
Travellers using magnetic stripe credit or
charge cards may run into problems in destinations that only accept cards with an
embedded chip and pin, which are more common in Europe and are becoming the global standard. Over
the last year, US banks have begun offering cards with embedded chips for those
who travel overseas frequently.
card v credit card:
If you are the type of traveller who submits
expense reports on time… and works for a company that processes and pays them
on time, then a charge card (such as American
Express or Diners Club), which requires payment in
full each month, should work for you. However, if you need a bit a wiggle room
when it comes to paying off your bill each month, a credit card (typically Visa and MasterCard) is probably a better option.
Frequent travellers should choose a card that,
at a minimum, offers collision damage coverage when renting cars and baggage
loss and/or damage protection. But if you rely on collision damage protection
when travelling internationally, be sure you know about any country-specific
exceptions before you get to the rental car counter. Some cards also offer
roadside assistance protection.
What type of credit or charge card is in your
wallet and why? Have you considered changing it? Please leave your comments on
our Facebook page.
Chris McGinnis is the business
travel columnist for BBC Travel