Using Your Credit Card Abroad: What You Need to Know

Using a credit card abroad can raise many questions. Will my card work overseas? How much will transactions cost? How can I avoid foreign transaction fees? Here’s what American travelers need to know about using credit cards internationally and tips for spending smart while on vacation.

How Do I Know If My Credit Card Works Internationally?

Almost all credit cards today are “international,” as they belong to major global payment networks like Visa, MasterCard, and American Express. To check, simply look for one of these logos on your card. These networks are widely accepted worldwide, including by ATMs and most merchants.

While your card may work overseas, your bank may charge additional fees for each transaction or withdrawal made outside the U.S.. To avoid paying these pesky ATM fees, we personally recommend pulling out cash all at once especially in countries where cash is king like Japan, Mexico, Spain, Vietnam, Poland, Colombia, and many more.

Tip: Some premium credit cards offer no foreign transaction fees as a built-in benefit. Alternatively, you can often activate a temporary international fee waiver with your bank before you travel.

Also Read: How to Save Money During Your Trip: Smart Spending While Traveling

Paying in the Eurozone: Are There Credit Card Fees?

Good news: Paying in euros across the Eurozone is fee-free for American credit card holders who have no foreign transaction fees. The Eurozone includes countries like France, Spain, Italy, Germany, and others that use the euro (€) as their official currency.

Additionally, six smaller countries outside the European Union—such as Monaco, Vatican City, and Montenegro—also use the euro, making payments simple and straightforward.

How to Avoid Foreign Transaction Fees Abroad

If your credit card doesn’t include fee-free international payments, here are some ways to avoid unnecessary costs during your trip:

• Choose a Travel-Friendly Credit Card: Many banks and fintech companies (financial tech) now offer cards with zero foreign transaction fees, specifically designed for travelers.
• Use Online or Mobile Banks: Consider opening a secondary account with an international bank or digital bank that offers fee-free foreign purchases and easy card management.

Tips for Safe Credit Card Use While Traveling

Before You Travel:

• Notify Your Bank: Inform your bank of your travel plans to avoid transactions being flagged as fraud.
• Increase Spending Limits: Temporarily raise your credit and withdrawal limits to avoid unexpected payment blocks.
• Carry Backup Cards: Bring two cards and store them separately. If one is lost, stolen, or stuck in an ATM, you’ll still have a payment option.
• Get Travel Protection: Travel insurance plans with assistance services, like the ones we sell on this site, help provide peace of mind in otherwise dire situations like lost or stolen payment cards and even needing cash advances for essential needs.
• Know Emergency Contacts: Note your bank’s international support numbers in case you need to freeze or cancel your card.

During Your Trip:

• Stay Secure: Shield your PIN when entering it and avoid handing your card to anyone out of sight.
• Use Bank-Linked ATMs: Withdraw cash only from ATMs physically attached to banks to reduce security risks.

After Your Return:

• Review Transactions: Check your statements for any unauthorized or incorrect charges and report them promptly.

Everyone wants to relax and enjoy their vacation, especially when investing a lot in the experience. For your peace of mind, start by getting a fast and free travel protection quote. 

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