Credit cards are the safest and most convenient way to pay
for expenses while on vacation, but they can and do get
stolen, and thieves often pick heavily populated vacation
spots to grab their opportunities. Protect yourself this
vacation season by taking some smart precautions before you
leave home.

First, pare down your wallet - if you usually carry a whole
fist full of credit cards, change your habit. After
checking each card so you know which has the largest credit
line, the most credit available, and the lowest interest
rate on purchases, pare down to only 2 cards. If one is
lost, you'll have a back-up. Once at your destination, put
your back up card in the hotel safe or the in-room safe.

If you have a home safe, put the others in the safe while
you're away. If not, consider storing them in your safe
deposit box at the bank. Unoccupied homes sometimes attract
burglars, so don't leave them in your desk drawer or stuck
in a kitchen cabinet, in plain sight!

Now, write down the contact information for your credit
card issuers and put it in a safe place in your luggage.
Suitcases, purses, and wallets can also become misplaced on
vacation, so why not make a couple of copies and carry them
in different places?

Under the terms of the Fair Credit Billing Act, your
maximum liability for charges on a lost or stolen card is
$50 - and some card issuers have zero-liability policies.
But unless you report the card missing right away, you
might have to show proof that you didn't enjoy that meal at
a 4-Star Restaurant or purchase that $1,000 necklace.

Some credit card issuers send up red flags when they see
unusual activity. Thus it is wise to let your card issuer
know that you will be on vacation, where you will be, and
how long you'll be gone. Otherwise, they could put a freeze
on charges if they can't reach anyone at your home to
verify that the charges are legitimate.

Using your credit card for vacation purchases can carry a
second benefit. Many card issuers offer loss and theft
protection - so if you buy something on vacation and that
something is stolen, you can notify your card issuer and
get a credit to your account. And of course, complaints
about merchandise ordered that never arrived are most
easily handled if the purchase was made with a card.