Using Credit Cards for Foreign Travel
What to Know and Cash-On-Hand
Absolutely — using credit cards while traveling internationally can be convenient and secure, but there are some key things to know and avoid to keep more money in your pocket and avoid surprises.
Using Credit Cards for Foreign Travel: What to Know
What to Do
- Use a Credit Card with No Foreign Transaction Fees
- These fees are typically 2–3% of every purchase. Cards like Chase Sapphire, Capital One, Amex Platinum, etc., waive them.
- If you’re not sure, call your bank before your trip to confirm.
- Enable Travel Notices (or Check Your Bank’s Policy)
- Some banks no longer require this, but it’s still smart to let them know to avoid a frozen card overseas.
- Use Chip + PIN if Possible
- Many international payment systems use chip + PIN, not chip + signature.
- Some U.S. cards don’t support PIN at unmanned kiosks (train stations, toll booths), so carry a backup or cash.
- Pay in the Local Currency
- If a merchant asks, “Do you want to pay in USD or [local currency]?” always choose local currency.
- This avoids Dynamic Currency Conversion (DCC), which uses a poor exchange rate and adds extra fees.
- Keep a Backup Card and Emergency Cash
- In case of fraud, declined transactions, or lost cards, always have a second card and some cash (converted to local currency) on hand.
- Check Currency Conversion Rates
- Credit cards usually use near real-time exchange rates (better than cash exchange kiosks).
- You can track rates with apps like XE Currency or Wise.
What to Avoid
- Avoid Cards with Foreign Transaction Fees
- These add up fast, especially on big-ticket items like hotels or tours.
- Avoid Airport Currency Exchange Booths
- Terrible rates. If you need cash, use a local ATM with a debit card that refunds ATM fees (like Charles Schwab or Fidelity).
- Avoid Using Credit Cards for ATM Withdrawals
- This is treated as a cash advance—high interest + fees immediately.
- Use a debit card for cash withdrawals instead.
- Avoid Skipping Receipts
- Always keep your receipts to cross-check against any fraudulent charges or misbilled items.
- Avoid Ignoring Foreign Fraud Alerts
- Turn on text/email notifications. If something looks suspicious, you want to act fast.
Bonus Tips
- Use Apple Pay or Google Pay where accepted—it adds a layer of security.
- Don’t rely on just one card—some places in Europe or Asia may not accept Amex or Discover.
- If you’re renting a car, use a credit card that includes rental insurance (check your benefits).
Cash on Hand
Having some cash in the destination’s local currency is a smart move because not all places accept cards—especially small shops, street vendors, taxis, or rural areas. It’s also helpful for tipping, public transit, and emergencies like power outages or card issues. Starting your trip with local cash means you won’t be scrambling at an airport kiosk with bad exchange rates or stuck in a situation where cards aren’t accepted.