5 Essential Tips for Using Your Credit Card Abroad

Your credit card can be an indispensable tool for convenience, security, and rewards when traveling internationally—but using your credit card abroad comes with some important risks to watch out for. If you're not careful, fees, fraud risks, and declined transactions could put a damper on your trip. The good news? With a little preparation, you can avoid common pitfalls. Follow these five essential tips for using your credit card abroad wisely.

1. Confirm your credit card will work internationally

While major credit card networks are widely recognized, some countries favor specific networks or prefer debit cards over credit. Before you travel, confirm that your card is widely accepted at your destination by calling your card issuer. Also, make sure your card uses chip-and-PIN technology, as many foreign merchants require it.

In some countries, mobile payments are preferred over traditional card transactions. Installing popular payment apps and linking your accounts ahead of time will ensure you’re ready if your physical card isn’t accepted.

2. Avoid foreign transaction fees

Foreign transaction fees—typically 1 percent to 3 percent per purchase—can add up quickly. Before you leave home, review your card’s terms to find out if these fees apply. If they do, consider using a different card.

If you don’t have an alternative and don’t have time to open a new account, consider securing local currency through a reputable source such as AAA. That way, you can lock in competitive rates and avoid the volatility of last-minute exchanges abroad. If you’ve already arrived at your destination, you can withdraw local currency from an ATM there. Withdraw larger amounts less frequently rather than making multiple smaller withdrawals. Since many banks charge fees per transaction, withdrawing larger amounts less frequently can often save you money.

When using your card, always opt to pay in the local currency when given the choice. Dynamic currency conversion at checkout often comes with deeply unfavorable exchange rates, so it’s best to avoid choosing USD.

3. Minimize credit card fraud risk abroad

Credit card fraud is a risk everywhere, but it can be especially frustrating while traveling. To protect yourself, follow these tips:

• Enable transaction alerts to monitor purchases in real time. Most issuers allow you to receive text and/or email notifications for transactions above a certain amount or for any foreign purchases.
• Use contactless or mobile payments when available for added security. They’re encrypted and generally more secure than traditional card swipes.
• Avoid using your credit card on public Wi-Fi networks. Hackers can intercept sensitive information, so it’s best to use a VPN or your mobile data when making online transactions. This includes logging into financial accounts and apps.
• Keep an eye on your card at all times. If a merchant wants to take your card out of sight, ask if they have a mobile card reader to complete the transaction in front of you—or consider skipping the purchase.

4. Maximize credit card rewards while traveling

International trips are a great opportunity to earn rewards on travel-related purchases. Before you go, check your card’s reward structure, and use it strategically to earn maximum points or cash back. If your card offers travel perks such as airport lounge access or travel insurance, be sure to take full advantage of these benefits to enhance your trip.

Make the most of your credit card rewards with these tips:

• Pay for larger expenses—such as hotels or excursions—with your credit card to rack up points faster.
• Book transportation, such as train tickets or car rentals, through your credit card’s travel portal if it offers extra rewards or discounts.
• Use your credit card for restaurant dining if it has elevated rewards for food purchases. Many cards offer higher points for international dining—a nice bonus!
• Take advantage of travel-related benefits such as concierge services, baggage delay reimbursement, or trip cancellation insurance. These perks can save you money and help you navigate unexpected travel disruptions.
• Use a card with no foreign transaction fees. Even great rewards can be canceled out by hefty fees, so using a travel-focused credit card with no foreign transaction charges ensures you keep all your earnings.

5. Reduce the risk of declined transactions

Even with careful planning, you can experience credit card declines while traveling abroad. To minimize the chances, follow these tips:

• Notify your credit card issuer of your travel plans. Many banks allow you to set up travel alerts online or through mobile apps.
• Keep your phone handy when using your card. If your issuer suspects fraud, they may text you to confirm a transaction quickly.
• Save your card’s customer service numbers in advance. Most banks have 24/7 customer support and can verify your identity and unblock your card if needed.
• Carry a backup credit card from a different bank in case you can’t reach customer service right away.

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Using your credit card abroad shouldn’t be stressful—it should be rewarding. With some smart planning, you can enjoy a smooth, secure experience while exploring the world and racking up rewards for future adventures along the way.