Using a credit card abroad? Here's what you need to know | finder.com

Using a credit card internationally

We value our editorial independence, basing our comparison results, content and reviews on objective analysis without bias. But we may receive compensation when you click links on our site. Learn more about how we make money from our partners.

You’re going abroad, and you’ve got money on your mind. Specifically, you’re wondering how your credit card will work when you’re traveling abroad. Here are a few questions you might have about your using your credit card overseas or across the border.

Why should I use my credit card abroad?

There can be big advantages to using your credit card while traveling. For one, it helps you carry less cash, which is one way to combat pickpockets. You also don’t have to convert your currency, as your card will do it for you.

If you’re worried about losing money on the exchange rate, know that your card provider will likely give you a better deal than you’ll get at a bank.

Our pick for traveling internationally: Hilton Honors American Express Card

  • Earn 75,000 Hilton Honors Bonus Points with the Hilton Honors American Express Card after you use your new Card to make $1,000 in eligible purchases within the first 3 months of Card Membership.
  • Earn 7X Hilton Honors Bonus Points for each dollar of eligible purchases charged directly with a hotel or resort within the Hilton Honors portfolio of brands.
  • Earn 5X Hilton Honors Bonus Points for each dollar of eligible purchases at U.S. restaurants, U.S. supermarkets, and U.S. gas stations.
  • Earn 3X Hilton Honors Bonus Points for all other eligible purchases on your Card.
  • No Foreign Transaction Fees. Enjoy international travel without additional fees on purchases made abroad.
  • Enjoy complimentary Hilton Honors Silver status with your Card. Plus, spend $20,000 on eligible purchases on your Card in a calendar year and you can earn an upgrade to Hilton Honors Gold status through the end of the next calendar year.
  • No Annual Fee.
  • Terms Apply.
  • See Rates & Fees
Promoted

Compare credit cards with no foreign transaction fees

While traveling internationally, be sure you have a credit card that doesn’t charge foreign transaction fees. Thankfully, you’ll find that the best travel credit cards waive these fees.

Name Product Currency Conversion Fee Annual Fee APR (Annual Percentage Rate) for Purchases
None
$0
17.74% to 26.74% variable
Earn 75,000 Hilton Honors™ Bonus Points after you spend $1,000 in purchases on the card within your first 3 months of Card Membership. Rates & Fees
None
$0 annual fee for the first year ($95 thereafter)
17.74% to 26.74% variable
30,000 bonus miles after you use your new card to make $1,000 on purchases within the first 3 months. Rates & Fees
None
$250
See Rates & Fees
50,000 bonus Membership Rewards® Points when you spend $2,000 in the first 3 months Rates & Fees
None
$550
None (Charge Card)
Get 5X Membership Rewards® points on flights booked directly with airlines or with American Express Travel and 5X points on eligible hotels booked on amextravel.com. Rates & Fees
None
$0 annual fee for the first year ($89 thereafter)
17.99%, 21.99% or 24.99% variable
Enjoy 60,000 bonus miles after spending $5,000 on purchases in the first 90 days.
None
$95
17.74% to 26.74% variable
Earn 125,000 Hilton Honors™ Bonus Points after you spend $2,000 or more in purchases with your new card within the first 3 months of Card Membership. Rates & Fees
None
$0 annual fee for the first year ($95 thereafter)
17.74% to 26.74% variable
Enjoy a $0 annual fee on the first year and earn up to 2 Starpoints® for every dollar of eligible purchases. Rates & Fees
None
$195
16.99% variable
Enjoy unique excursions, privileged access to exclusive events and insider opportunities.
None
$0
14.99%, 18.99% or 24.99% variable
Earn unlimited 1.5% cash rewards on purchases. See Rates and Fees.
None
$495
16.99% variable
Mastercard Black Card members receive an annual $100 air travel credit toward flight-related purchases including airline tickets, baggage fees, upgrades and more.

Compare up to 4 providers

A-Z list of credit card use by country

So, should I just use my credit card for everything?

Though a credit card can be convenient, you might not want to solely rely on it when traveling. Some merchants at your destination may not accept credit cards, preferring that you pay in cash instead. This could be the case at a lot of small mom-and-pop shops and restaurants.

More broadly, it’s helpful to know whether your destination is credit card friendly. Card acceptance varies country by country, and even city by city. For example, you can probably use your card everywhere you go in Sweden, but you’ll need lots of cash in Germany. And if you go to China, you can easily use your card in Beijing, but you may be out of luck in smaller cities.

All said, carry both a credit card and cash when you travel. Your card will make transactions more convenient, and cash will cover you in a pinch.

Will my credit card work overseas?

If your card has only a magnetic stripe, it might not be accepted overseas. That’s because many countries have upgraded to chip-and-PIN cards. You use these chip-embedded cards by entering a PIN (or personal identification number) when you buy something.

Your card may be a chip-and-signature card, in which case you’ll sign for your purchases when using your card abroad. Even still, there may be some instances where your chip-and-signature card won’t be sufficient. For example, you may need a chip-and-PIN card at an automated ticket machine, where there’s no one to take your signature. (The good news, however, is that many machines offer signature options once they detect your card isn’t a chip-and-PIN.)

If you don’t have a chip card, it’s highly advisable to get one — many merchants won’t accept magnetic-stripe cards. You’ll should be fine with a chip-and-signature card, but a chip-and-PIN card is ideal.

What fees should I know about?

Pay close attention to foreign transaction fees, currency conversion fees, cash advance fees and ATM fees.

Foreign transaction fees

Many cards will charge a foreign transaction fee, which is a fee assessed when you use your card abroad. It’s usually 3% of each transaction.

To avoid this fee, look for top-notch travel cards like the Chase Sapphire Preferred® credit card, Barclaycard Arrival Plus and The Platinum Card® from American Express. These cards charge no foreign transaction fees.

Currency conversion fees

You’ll pay a currency conversion fee when a foreign merchant converts your bill into dollars, instead of charging you in the local currency. This is called dynamic currency conversion, and it’s expensive. If a merchant offers it, say no and save yourself the currency conversion fee.

Cash advance fees

When you take out cash with your credit card, you’ll probably be charged a cash advance fee. This is a flat rate or a percentage of your transaction. For example, the Chase Sapphire Preferred® credit card fee is either $10 or 5% of the transaction (whichever is higher).

On top of that, you’ll start paying interest immediately. So, avoid using your credit card to get cash — use your debit card instead.

ATM fees

Even if you have a debit card, your bank will probably charge you fees when you take out cash from a foreign ATM. The ATM company itself may also charge fees.

You do have options to avoid these fees. The Schwab Bank High Yield Investor Checking Account, for example, is a popular option for avoiding ATM fees. You can use your debit card for cash withdrawals, and you’ll be reimbursed for any fees you incur.

Capital One’s 360 Checking also doesn’t charge for ATM withdrawals (though you won’t be reimbursed for fees charged by ATM operators).

How should I prepare before my trip?

Before going abroad, make a few preparations to ensure that you can use your credit card with no problems.

  1. Get a credit card with no foreign transaction fees. Foreign transaction fees can be a downer on vacation, but they’re easy to avoid if you pick the right card.
  2. Highly consider getting a Visa, Mastercard or American Express. These brands are more likely to be accepted abroad (especially Visa and Mastercard). You may be able to use Discover cards at some locations, but you’ll find that many merchants won’t accept it.
  3. Give your card provider a heads-up. Your card company hates fraud, because it loses them money. If they see a foreign transaction on your card, they may put a hold on your account for suspicious activity. To avoid this, give your provider a quick call letting them know where you’ll be traveling.
  4. Know who to call if you have a problem with your card while traveling. Your card might get stolen while you’re traveling, or you could lose it. In these cases, you’ll need the right number to call for a replacement card. Make sure the number is local to your destination.
  5. Know where you’ll get cash once you arrive. Even if you have a credit card, it’s smart to have cash on hand. So you don’t waste time or money, plan out beforehand where you’ll get your cash. Check if your bank has international partnerships that allow you to use some ATMs for free.

Next steps

Before you head out on your next trip, have answers to these questions:

  • Which credit cards will I take? Consider taking at least two. Make sure they’re chip cards and don’t have foreign transaction fees.
  • Do I understand the fees I might encounter? Knowledge is power — and it can save you a lot of money on your travels.
  • Have I made preparations with my card provider? Keep your card provider in the loop, and know what number you’ll call if you run into trouble abroad.
  • What’s my plan for cash? Have a debit card ready, and know which ATMs you’ll get cash from.

Once you’ve made these arrangements, you’re all set to use your credit card on your next trip. Safe travels!

Adrienne Fuller

Adrienne Fuller leads the publishing team at finder.com. She has one goal: to deliver the accurate and transparent information she wishes she had when she made some of life's important financial decisions. When she's not helping folks save money, she's hiking with her two Catahoulas around her home in San Diego.

Was this content helpful to you? No  Yes

US Credit Card Offers

Important Information*
Deserve® Classic Card
Deserve® Classic Card

APR

24.49
variable

Annual fee

0 For the first year
More info
Luxury Card Mastercard® Gold Card™
Luxury Card Mastercard® Gold Card™

APR

16.74
variable

Annual fee

995 For the first year
More info
First Access Visa Card®
First Access Visa Card®

APR

29.99
variable

Annual fee

75 For the first year
More info
Indigo® Platinum Mastercard® Credit Card
Indigo® Platinum Mastercard® Credit Card

APR

23.9
variable

Annual fee

75 For the first year
More info

Ask an Expert

You are about to post a question on finder.com:

  • Do not enter personal information (eg. surname, phone number, bank details) as your question will be made public
  • finder.com is a financial comparison and information service, not a bank or product provider
  • We cannot provide you with personal advice or recommendations
  • Your answer might already be waiting – check previous questions below to see if yours has already been asked

Finder only provides general advice and factual information, so consider your own circumstances, or seek advice before you decide to act on our content. By submitting a question, you're accepting our Privacy and Cookies Policy and Terms of Use.

US Credit Card Offers

Important Information*
Deserve® Classic Card
Deserve® Classic Card

APR

24.49
variable

Annual fee

0 For the first year
More info
Luxury Card Mastercard® Gold Card™
Luxury Card Mastercard® Gold Card™

APR

16.74
variable

Annual fee

995 For the first year
More info
First Access Visa Card®
First Access Visa Card®

APR

29.99
variable

Annual fee

75 For the first year
More info
Indigo® Platinum Mastercard® Credit Card
Indigo® Platinum Mastercard® Credit Card

APR

23.9
variable

Annual fee

75 For the first year
More info
Go to site