Here’s why you always use a credit card when booking travel

Next time you’re tempted to pay for a trip by check — or God forbid, cash — think about Catherine MacLean.

A few months ago, she and her husband booked a cruise to Vietnam through Freighter World Cruises by way of a company called Value World. They paid a nonrefundable $1,000 deposit by credit card for the January cruise.

That is that last thing we ever heard from either company. We never received even an acknowledgment of our deposit, let alone a detailed description of the vacation, coordination in obtaining visas, a fiscal timeline, or a bill.

We never heard a thing. Not an email, not a phone call.

Efforts to reach the companies proved difficult. Her husband reached Freighter World Cruises by phone and was told it was not located in Pasadena, Calif., as they believed, but in Houston. He was also informed that reservation information had been lost “because of the hurricane.”

A Freighter World Cruises promised a refund, given the circumstances. But after months of waiting, they didn’t get one.

What now?

I suggested MacLean contact her credit card company immediately to dispute the charges. She did.

You were correct. I am pleased to let you know that Capital One credited my account within a week after receiving my letter.

If MacLean had paid for her cruise by check or cash, she’d probably be out of luck. Recovering cash is nearly impossible, unless you have the patience and resources to go to court.

So next time you’re thinking of pulling out the checkbook, think about MacLean. Don’t let anyone talk you into paying with anything other than a credit card. (Travel agents who demand cash payments are trouble, as I discussed in Monday’s controversial MSNBC column.)

In other words, just say “no” to cash.

  • http://www.shipcriticblog.com Anne

    Banks will be lowering the credit limit of many card holders — I imagine this will directly affect travelers, both leisure and business.

  • sven

    Are there really people out there gullible enough to pay cash to a travel agent?

    How was your other article controversial? I thought it was fine.

  • Passing Through

    Are debit/check cards considered “pay by check”? They’ve got the Visa/MC symbol right on them… so I’m confused. Thanks!

  • Larry

    Just for completeness, my experience is that the credit card companies always give a swift refund after a challenge is posted. But that does not mean the claim is over. What happens after that is that they research it, which can taker months. They can, and sometimes do, reinstate the charge if they don’t ultimately accept the claim.

  • Wrona

    Debit/check cards do not have the same protections as credit cards. In general, you would be in the same position as someone who paid with a check if you paid with a debit/check card but it depends on your bank.

  • Carver Farrow

    Debit cards with VIsa/MC enjoys nearly all of the same protections as real credit card and are basically equally safe. However, debit cards tie up cash which may be an issue especially since some travel providers place extra holds on cards. Debit cards also have spending limits which may also be a concern for travelers.

  • Jay

    “Debit/check cards do not have the same protections as credit cards. ”

    Can you be more specific? I understand that if you do debit, you are basically making an ATM transaction. But what if you run it as credit through Visa or MC?

  • Lianne

    Carver Farrow is correct. As a former bank employee I can state that Visa and Mastercard extend nearly the same protections to debit cards *run as credit* that they do to actual credit cards. I say nearly because debit cards run as credit still aren’t subject to the same laws that govern credit cards so it can’t be a blanket statement.

    If you run a debit card as a debit (use your pin) then you are SOL. There are some instances of out and out fraud that the banks will protect you from, its less likely to do so if you willingly handed over your money.