Traveling for leisure is a fun pastime for many people. You dream of visiting new, remote locations and creating lifelong memories. A lot of planning can go into such a trip, particularly if you’re traveling internationally. Following wise credit card tips needs to be a key part of that planning. If you’re wondering ‘Can I use my credit card abroad?’, the answer is typically yes. How you use that card matters, though. By following these tips, you can save money and avoid potential travel disruptions.
Notify the credit card company that you’re traveling
Although it’s not as common today, you may want to consider notifying your credit card company that you’re traveling. The last thing you want while on vacation is to have purchases erroneously flagged as fraudulent, with limited means to contact the company to rectify the issue.
Call your credit card company to inform them of your travel destination and dates. Some issuing banks even let you do this within their apps. It takes only a few moments, and notifying them is worth the peace of mind that comes from knowing your credit card company is aware that you’re traveling.
Avoid dynamic currency conversions
Using a credit card for traveling overseas can be a helpful way to manage spending, but some conveniences are costly. One such convenience is dynamic currency conversion (DCC). DCC will appear at some retailers or ATMs. When making a purchase, you may be prompted to select whether you want to pay in U.S. dollars or the local currency.
Choosing U.S. dollars seems right, but it comes at a cost. The retailer or payment processor sets the conversion rate, and it often comes with an added fee. Worse yet, you may still incur a foreign transaction fee. Decline the DCC and save yourself some money.
➤ SEE MORE:Do credit cards offer good currency exchange rates?
Create alerts to monitor spending
Receiving text alerts may seem annoying while traveling. It makes sense, but getting alerts is a good way to protect yourself when traveling with credit cards internationally.
Many credit card companies let you report problems with transactions within their respective apps. This is far easier to manage in real-time versus trying to deal with and remember once you return home and review your statement.
Take advantage of available travel perks
The best travel credit cards offer loads of perks you can use when traveling internationally. Not all may apply to your needs, but it’s possible to access numerous perks to help save money, earn rewards, simplify travel, or protect yourself.
Some of the top perks to look for when using credit cards abroad include:
- Airport lounge access: Does your trip include an extended layover at an airport? Some credit cards include complimentary access to lounges to refresh and grab a bite to eat.
- Car rental insurance: Insurance through a rental car company is often expensive. Some credit cards, such as the Chase Sapphire Preferred(R) Card, offer coverage so you can waive coverage through the rental company.
- Lost baggage and trip cancellation: Travel disruption is an unfortunate reality. Some cards extend trip delay and interruption coverage. Some also offer lost luggage and accident coverage.
- TSA PreCheck or Global Entry enrollment credit: Nobody likes waiting in lines at the airport. Thankfully, some credit cards offer statement credits for TSA PreCheck or Global Entry.
- Book excursions through the travel portal: If your travel includes visiting attractions, consider using points instead of cash to book the outing. The Chase Travel portal is a good place to do this to cut costs.
Many of the best travel rewards credit cards let you earn multiple points on travel purchases, too. Take advantage of those to earn more on your spending when using credit cards overseas.
Choose a card with no foreign transaction fees
It’s not uncommon for credit card companies to charge a fee for the usage of a card internationally. These foreign transaction surcharges can often add up to an extra 3-5% on purchases made abroad.
For example, if you purchase a gift for $100 and your card charges a 3% fee, you will see a charge of $103 on your monthly statement. This may not seem like a lot, but the fee can add up if you use your card a lot while on vacation.
Carrying local currency is an alternative, but you may not want to carry cash. Thankfully, there are credit cards that charge no foreign transaction fees to use when traveling abroad.
Best credit cards for traveling abroad
Identifying the right credit card when traveling internationally is key to saving money and maximizing rewards. It’s essential to select a card that doesn’t charge a foreign transaction fee to keep costs in check.
It’s also wise to pick a card with multiple earning opportunities on spending that also provides travel perks and/or protections. Top cards to consider include:
Before selecting which card to take on your trip, verify that it will work at your destination.
Frequently asked questions
Traveling with credit cards requires research to find the best card to use for your trip. These are common questions people have when identifying which credit card is best for them.
Should I notify my credit card company when traveling?
It’s not a requirement to notify your credit card company that you’re traveling, but it’s a wise precaution. This simple step can help you avoid a headache while on vacation. Call the company or notify them within your app to get the travel noted in your file.
Is it cheaper to use a credit card or cash abroad?
It stands to reason that cash is cheaper to use when spending money abroad. That’s not necessarily the case. Credit card companies typically set competitive exchange rates, better than what you may find at a hotel or airport. If your credit card charges no foreign transaction fees, you’re receiving a better deal.
Do you get charged for using a credit card abroad?
Yes, it’s possible to be charged fees for using credit cards internationally. However, if you use a card that charges foreign transaction fees or use DCC, you may incur surcharges.
The bottom line
Traveling with credit cards can be a powerful way to earn rewards and access perks not available when paying with cash. By following these tips, you can cut costs and optimize earnings. Choosing the wrong credit card or not planning your usage can hamper an otherwise memorable trip.
The Platinum Card(R) from American Express See Rates and Fees; American Express(R) Gold Card American Express(R) Gold Card
