Using a credit card in Pakistan
Use our guide to get the best out of your plastic, and your cash, on holiday in Pakistan.
Tourism has been growing across Pakistan in the last few years, with more people being attracted to beautiful mountain scenery, historical heritage and fantastic culture.
The growth in tourism has been mirrored by the growing acceptance of credit cards, although not nearly as much as in Europe and across more developed countries.
Visa cards are the most likely to be accepted, although you may find joy using a Mastercard and American Express in more high-end establishments.
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Compare cards with fee-free currency conversion in Pakistan
Cash machines in Pakistan
You’ll find ATMs linked to the Plus or Cirrus systems in all urban areas of Pakistan, allowing you to withdraw cash using your Visa or Mastercard card. You may find them harder to come by in the more run-down rural areas of the country. ATMs are in all Pakistani cities and towns, at train and bus stations, petrol stations, shopping centres and popular tourist destinations. Bank-affiliated ATMs don’t usually impose additional fees to those your bank may levy.
Cash in Pakistan
Pakistan remains a cash-based society, so it’s recommended to have enough rupees on you to cover your back at all times. This might be especially necessary within smaller establishments, or in lesser-known towns across the country. You may also still need to pay in cash for smaller purchases, as many shops, restaurants and other businesses are keen to avoid the processing fees charged to vendors who accept credit card payments.
Chip and PIN
Pakistan has moved from magnetic-stripe to chip cards, and all banks in Pakistan now issue the latter. You’ll still be able to use your magnetic-stripe card in Pakistan, although you can expect some confusion. In the switching of technology, some retailers falsely believe that they can no longer accept magnetic-stripe cards while some others will not let you use them, to do their bit in reducing credit card fraud. All they basically need you to do is swipe your card instead of inserting it into the machine, and then get you to sign for the purchase.
If you use a chip-and-signature card, you can use it in Pakistan just about everywhere you find a manned credit card machine. However, some businesses are hesitant in accepting them because they are not sure if it’s allowed and some others don’t accept them to cut down on credit card fraud. If you’re getting tickets from a machine, you will need to enter a PIN, in which case your chip-and-signature card won’t work.
Is it safe to use my card in Pakistan?
By exercising some caution when using your credit card in Pakistan, you’ll have a relatively trouble-free experience.
- Keep your PIN safe. Use one hand to enter the PIN and the other to shield it from prying eyes and hidden cameras.
- Select cash machines with care. Try and stick to ATMs in banks and avoid using ones in the street.
- Watch out for “skimmers”. When installed in an ATM, a card skimmer works by stealing information from credit and debit cards. If you feel the card slot is not as smooth as it should be or if there is a problem with the keypad, cancel your transaction and look for another ATM.
Keeping your credit card (physically) safe
Remain alert to street crime, especially where two or more people work in distracting victims before decamping with their valuables. Instances of theft at airports are not uncommon, so stay vigilant while arriving and departing. There have been numerous instances of thefts from hired cars so don’t leave your wallet or purse in a parked car.
Potential credit card fees
Credit card fees can leave a noticeable dent in your pocket when you’re travelling overseas, so know what you’re up against well in advance and choose a card with no or low fees.
Foreign transaction fees
British credit card issuers typically charge a fee equivalent to 1% to 3% of your transaction, so carefully review your card’s fine print to avoid statement surprises. Some cards designed for travel come with no foreign transaction fees, so this could be a good time to switch.
Currency conversion fees
If a retailer offers to bill your credit card in sterling, dynamic currency conversion comes into play. While this might sound like a good deal, you’ll actually end up getting a worse exchange rate, and you might also end up paying currency conversion fees. Whenever you’re presented with an option, choose to pay in the local currency.
Cash advance fees
Using your credit card to withdraw money from an ATM may not make sense unless it’s a bona fide emergency. Each time you withdraw funds from an ATM, you’re likely to pay a cash advance fee. Your APR for cash advances is normally higher than your purchase APR, and you’ll typically get no grace period on interest – instead, you start paying interest immediately. Again, some cards designed for overseas spending will waive this fee.
The table below serves as an example of how much extra you may pay to use your credit card in Pakistan.
What is a cash advance fee?A cash advance fee is calculated (and charged) when you withdraw cash from your credit card. It’s usually the greater of a flat fee or a percentage of the transaction. For example, “2.5% of the transaction, minimum £3.00”.
How to prepare before travelling to Pakistan
- Go with Visa or Mastercard. Carry at least two cards on your trip to Pakistan, preferably connected with Visa or Mastercard. If you just take an American Express card, you won’t get to use it in many places.
- Think no foreign transaction fees. When there are cards that come with no foreign transaction fees, using ones that charge 2% or 3% of each overseas transaction does not make sense. Some of these cards don’t charge an annual fee, either.
- Keep your bank informed. In their efforts to thwart fraudulent transactions, banks block credit cards if they detect suspicious activity such as unexpected overseas transactions. To make sure this does not happen to your card, let your bank know about your travel plans before you leave the UK.
- Keep the emergency number handy. Know which numbers you will need to call if you end up losing your card or if you need an emergency replacement.
- Know where you’ll get cash from. Consider using your debit card to withdraw cash from ATMs. If you need to exchange money, stick to banks or official money-exchange offices because possessing counterfeit money in Pakistan is a serious crime. Try to avoid exchanging money at airports and popular tourist destinations because of typically poor exchange rates.
Ask yourself these simple questions before you leave so your spending in Pakistan does not hit any roadblocks.
- Which cards will I take? Visa and Mastercard are the most commonly accepted cards. If you’re planning a trip, check out cards which give you complimentary airport lounge access. If you’re planning well in advance, consider earning air miles for your trip with a frequent flyer credit card.
- Have I let my bank know? If you don’t inform your bank about your travel plans, you may end up with a temporarily suspended card.
- What fees do I need to pay? If your existing cards come with foreign transaction fees, look for one that does not. Paying in sterling outside of the UK might come with currency conversion fees.
- How will I get cash? Using your debit card at an ATM is the simplest way to access your own money. You can carry cash and traveller’s cheques with you. Exchanging sterling to rupees is simple enough and you’ll get several options.
When you’re in Pakistan, you don’t have to worry about where and when you can use your credit card. Just keep some cash handy to pay for small purchases.
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