Will your credit card work abroad?

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Published on August 28, 2024 | 4 min read

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Key takeaways

Credit cards can have major benefits compared to cash when traveling internationally — including convenience, rewards and protection.
Make sure you choose a credit card that is commonly accepted overseas — and when in doubt, have a backup.
There may be fees associated with using your credit card abroad. Two of the most common fees include foreign transaction fees and merchant fees.

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 may still encounter issues when attempting to use your credit card abroad. Luckily, there are workarounds to a few of the most common issues you may come across.

Bankrate Tip

See Bankrate’s 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 may prevent your credit card from working overseas. Most of them have simple solutions and require just a bit of advanced planning.

Visa and Mastercard are the most widely accepted credit card issuers worldwide. While American Express and Discover can come in handy in many situations, you may want to bring a backup Visa or Mastercard while traveling abroad, just in case.
In many countries around the world, chip and personal identification number (PIN) cards are the norm. These cards use a microchip and 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 associated with 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.
If you’ve booked any part of your trip on your credit card, notifying your bank isn’t usually required. If you did not use your credit card to book any part of the trip, though, then 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 potentially earn rewards 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 and other added benefits.

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.

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 to 8 percent. These fees help offset the costs of the added protection you receive from a credit card.

If a merchant asks whether you want to pay in U.S. dollars or the local currency, always opt for the local currency. Your credit card issuer is likely to give you a much better conversion rate than the local business owner will.

Unfortunately, there isn’t much consumers can do about these fees. You can either pay the fee, use cash or shop somewhere else to get around them. The last thing you want is to get into a skirmish with an overseas 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 may 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.