Credit cards are widely accepted in most parts of the world, which is great for those who want to maximize rewards on their trips abroad. Not only do many cards offer generous rewards on travel spending, but they also provide convenience and an added layer of protection in case your trip doesn’t go as planned.
Using a credit card is better than using cash in most cases. However, you might still encounter issues when attempting to use your credit card abroad. Luckily, there are workarounds to some of the most common obstacles you’ll encounter.
See our Travel Toolkit for tips and insights to boost your savings and maximize your travel.
How to make sure your credit card works abroad
A handful of factors might prevent your credit card from functioning abroad. Most of them have simple solutions and require just a bit of advanced planning.
Use a widely accepted issuer
Visa and Mastercard are the most widely accepted credit card issuers worldwide. While American Express and Discover can come in handy, you’ll want to bring a backup Visa or Mastercard just in case.
Chip and PIN cards
In countries around the world, chip and PIN cards are the norm. These cards use a microchip and personal identification number — or PIN — to validate transactions, instead of a cardholder’s signature. Rather than swiping the magnetic stripe through the card reader, consumers insert the card into the machine and enter the PIN stored on the chip. If you have a card with a chip in your wallet, set a PIN so you don’t run into trouble using it abroad.
Notify your bank of your travel plans
Providing advance notice of your travel plans reduces the odds of your bank declining your transactions abroad. Knowing that you’ll be in Paris for a week, your bank is less likely to reject all those purchases at patisseries. They’ll know your credit card isn’t compromised — you’re just being a tourist, eating all the chocolate croissants you can muster.
Is it worthwhile to use a credit card abroad?
Yes — using your credit card abroad provides security and convenience that cash does not. You’ll earn points on every purchase, which you can save up and redeem toward future travel experiences. The items you buy may also be covered by purchase protection, giving you extra peace of mind. More importantly, you won’t have to carry large amounts of cash and worry about the security risk it poses.
While you should bring some cash for those smaller, irresistible purchases, a credit card provides stronger protection.
What’s the cost of using a credit card abroad?
You’ll encounter two types of fees when using a credit card abroad: foreign transaction fees and merchant fees. Foreign transaction fees are around 3 percent and can be avoided since many travel rewards cards waive them.
Another fee you can avoid is a so-called dynamic currency conversion fee. It’s a sneaky fee for travelers who agree for a transaction to be converted to U.S. dollars when you make a purchase in foreign currency. If you’re asked whether you’d like to pay in U.S. dollars with your card, say no. Instead, look up exchange rates and do the conversion on your own. Or check your card’s e-statement or app after the sale to see the conversion fee.
Merchant fees can include surcharges or convenience fees for using your card. These fees help to offset the merchant’s processing costs and can vary from 3 percent to 8 percent. These fees help offset the costs of the added protection you receive from a credit card.
Unfortunately, there isn’t much consumers can do about it. You can either pay the fee, use cash or shop somewhere else to get around it. The last thing you want is to get into a skirmish with a small-business owner just trying to get by.
The bottom line
What you pack in your wallet matters as much as what you put in your carry-on when you travel abroad. You’ll want to bring one or more of the top travel credit cards that are widely accepted and offer purchase and travel protection, generous rewards and travel perks. You might encounter a few issues when using a credit card to pay for purchases, but there are workarounds. By following safe use practices, you won’t have to carry large sums of cash or worry about your transactions getting declined.
FAQs
Yes — using your credit card abroad provides security and convenience that cash does not. You'll earn points on every purchase, which you can save up and redeem toward future travel experiences.
Will my credit card work internationally? ›
If a business accepts credit cards, your Visa or Mastercard will likely work fine. The other two — American Express and Discover — do have a global footprint, but they are accepted at fewer merchants. If you have one of these cards, be sure to confirm you can use it on your trip.
Is my credit card OK to use abroad? ›
It depends on the credit card. Some credit cards will charge a fee overseas, while other cards will not. Confirm with your credit card company what kind of fees, if any, will be charged if the card is used abroad.
Do I need to tell my credit card company I'm going abroad? ›
You're not required to notify your credit card company when you're going away on vacation, but it is highly recommended. By letting your credit card company know where you're going and for how long, your company will know that any card transactions from that location were likely authorized by you.
Why is my credit card being declined abroad? ›
You're spending outside of your habits, whether in what you're purchasing or where you're purchasing it. However, sometimes it might not even be anything that you've done. It could just be that you're traveling in a fraud-prevalent country, where credit theft and scams are more likely.
How do I know if my card works internationally? ›
How to make sure your credit card works abroad
- Use a widely accepted issuer. Visa and Mastercard are the most widely accepted credit card issuers worldwide. ...
- Chip and PIN cards. In countries around the world, chip and PIN cards are the norm. ...
- Notify your bank of your travel plans.
If you have not activated the overseas usage feature, Magnetic Stripe Transactions on your Card cannot be processed. However, please note that EMV Chip Transactions on your Card will still be processed and you will be liable for these transactions.
Is it worth to use a credit card overseas? ›
Credit cards typically provide better exchange rates than what you'll get from ATM machines and currency stands. Depending on your card issuer, your purchases might automatically qualify for insurance. This coverage doesn't simply apply to consumer goods — it also covers travel delays and lost luggage.
Is it better to use card or cash abroad? ›
While credit cards are easy to carry and more secure than cash, you should always have some local cash on you when traveling. It's just good sense. Besides the fact that some local shops and vendors won't accept credit cards, having some cash provides a safety net in case your bank shuts off your card for any reason.
Do I need to tell my bank I'm going abroad? ›
If you intend to use your personal debit or credit card abroad it is best that you let us know. Telling us in advance that you're travelling will notify our transaction monitoring systems you will be using your debit or credit card abroad. This will help us to reduce the likelihood of your transactions being blocked.
Using a credit card with no foreign transaction fees and choosing to make purchases in local currency will nearly always save you money. Currency conversion apps can help you better understand pricing and identify hidden charges.
Is it better to use a credit card or debit card out of the country? ›
Using Credit Cards on Vacation
First, credit cards offer convenience and unparalleled security. When making payments in a foreign country to vendors you've never encountered, the fraud protection on credit cards and the ability to dispute unauthorized charges make this payment method desirable and super-safe.
Will my card work overseas? ›
Your card is compatible with most overseas ATMs. Just make sure the ATM accepts Visa cards and be sure to select Credit when making your withdrawal. Please be aware that overseas transaction fees will apply. Additional ATM operator fees may also apply.
What happens if you use your credit card abroad? ›
Most credit card providers charge you a fee for currency conversion when you're abroad – and for withdrawing cash abroad you may also be charged a cash withdrawal fee. Your exchange rate will be set by your payment scheme provider – either Visa, Mastercard or American Express.
What country does not accept credit cards? ›
Card Geographical Restrictions And Security
- China (including Hong Kong)
- Democratic People's Syrian Arab Republic.
- Iran (Islamic Republic of)
- North Korea (Democratic People's Republic of Korea)
- Romania.
- Taiwan.
- Russia.
- Ukraine.
Besides fund insufficiency, here are some of the most common issues behind a card decline: There was a manual error. You've reached your daily purchase limit. Your debit card expired or is inactive.
Can I use my credit card for international transactions? ›
Credit cards are powerful financial tools that offer convenience and flexibility for various transactions. While they are commonly used for domestic purchases, many people wonder whether they can use their credit cards for international transactions. The answer is a resounding yes.
How do I check if my credit card is international? ›
For international cards, the first digit is usually a 3, 4, 5, or 6. Domestic cards typically start with a 1 or 2. 2. Check the length: International credit cards often have longer numbers compared to domestic cards.
Can my credit card make international payments? ›
You can use a credit card issued by your bank to make an online international money transfer, providing it is linked to your online banking. Banks also accept credit cards for payment through other forms of transfer including phone banking and in person at a branch.
Can I use my Visa card in another country? ›
Visa is accepted at over 200 countries and territories around the world. You can find an ATM in your destination by using our ATM locator.
