Credit cards are widely accepted in most parts of the world and are a great choice for those looking to get the most out of their international travel. Many cards offer generous rewards for travel expenses, as well as convenience and extra protection if your trip doesn’t go as planned.
In most cases, it’s more convenient to use a credit card than cash. But sometimes you can run into problems when trying to use your credit card abroad. Luckily, there are workarounds for some of the most common problems you might encounter.
How to check if your credit card can be used overseas
Several factors can cause your credit card to not work abroad, most of which have easy solutions and just require a little bit of advance planning.
Is it worth using a credit card abroad?
Yes, using a credit card abroad offers security and convenience that cash just can’t. With every purchase, you can potentially earn points that you can save up and use towards future travel experiences. Your purchases may also be covered under purchase protection, giving you extra peace of mind. More importantly, you won’t need to carry large amounts of cash around and worry about the security risks that it brings.
While you’ll still need to bring cash for small, must-buy purchases, using a credit card gives you more protection and other added perks.
How much does it cost to use a credit card abroad?
When you use your credit card abroad, you’ll be charged two different fees: a foreign transaction fee and a merchant fee. The foreign transaction fee is around 3%, but many travel rewards cards waive it, so you can avoid it.
Merchant fees may include additional fees or charges for using your card. These fees help offset the merchant’s processing costs and can range from 3 to 8 percent. These fees help offset the cost of the extra protection you get from a credit card.
If a merchant asks you whether you want to pay in US dollars or the local currency, be sure to select the local currency. Your credit card issuer will likely give you a much better conversion rate than a local merchant can offer.
Unfortunately, there’s not much consumers can do about these fees: they can either pay them, use cash, or avoid them by shopping elsewhere. The last thing you want is to get into a scuffle with overseas small business owners who are just trying to stay afloat.
Conclusion
When traveling internationally, what you carry in your wallet is just as important as what you put in your carry-on luggage. We recommend bringing one or more top-rated travel credit cards that are widely accepted and offer purchase and travel protection, generous rewards, and travel perks. Using a credit card to pay for purchases can pose some issues, but there are workarounds. By following safe usage practices, you won’t have to carry large amounts of cash or worry about your transactions being declined.
