Can I Use My Credit Card Internationally? How To Use Credit Cards While Traveling Abroad (2024)

Credit Cards Reviewer and Writer

Updated: Feb 21, 2024, 4:53pm

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International merchants with credit card terminals will almost always accept Visa or Mastercard, issuers with strong international payment networks. Unfortunately, American Express and Discover can prove finicky abroad, as these two issuers have less robust payment networks outside the United States. However, destinations heavily trafficked with American tourists—such as a Caribbean port town or European capital—are more likely to have merchants who accept American Express and Discover in addition to Visa and Mastercard.

A common question is whether you still earn points while spending abroad. Thankfully, the answer is yes, you still accrue points the same way you would with domestic purchases. So, for example, if you use a card that bonuses dining spend at a restaurant abroad, you’ll still have access to those juicy points multipliers.

When you use a credit card in a foreign country, the issuer automatically converts the local currency to dollars based on up-to-date exchange rates. For this conversion service, the issuer may charge a nominal fee, a percentage typically between 1-3% of the total purchase. So, if you buy a T-shirt in Mexico for $10 USD, you could incur a fee ranging from $.10-.30 if you use your card.

Such fees are rarely noticed for small purchases but add up when making more expensive purchases or over the course of a long trip. Note that some credit cards waive foreign transaction fees. If you plan to be abroad and using your card frequently this will save you a lot of money.

Merchants also incur what’s called a “cross-border fee” when accepting foreign credit cards, an amount usually between 0.4-1.0% of the total purchase. Often, they pass this fee on to the customer, making your purchase even more expensive. Most international merchants’ card terminals are compatible with Visa and Mastercard, but, as mentioned before, American Express and Discover can prove more difficult. To avoid a hassle, carry some cash in case you encounter a merchant unwilling to accept a credit card.

Tips for Using a Card Internationally

When you are abroad and using your card, here are a few things to keep in mind:

• Inform your credit card issuer of your travel plans. Charges in foreign countries can raise red flags with credit card companies, especially if amounts are larger than usual. If your issuer suspects fraudulent activity, you may find your credit card temporarily locked. You can set travel notifications online or by calling the number on the back of the card.
• Bring cash while traveling, just in case. In the unlikely scenario you lose your credit cards, an emergency stash of cash can tide you over while you wait for a temporary card from your issuer. You can either bring U.S. dollars to convert at a currency exchange (airports and shopping malls usually have stations for this) or use your debit card to withdraw local cash. Either way, you will have to pay a fee for the conversion.
• Apply for a card with no foreign transaction fees. Basic credit cards and debit cards charge a foreign transaction fee of 1-3%, whereas premium travel cards often waive foreign transaction fees altogether. So if you make a high volume of purchases while abroad you could save significant money in the long-run with an upgraded card.
• Keep points in mind when using your card abroad. You earn multiplied points on the same types of purchases abroad as you would in the U.S. So if your card offers bonus rewards categories, you can continue to earn points no matter where you are.
• Familiarize yourself with your card’s travel perks. Many premium credit cards offer bonuses like free travel and rental car insurance, access to airport lounges and hotel upgrades. Knowing what your card offers will give you more options when traveling and potentially save you money as well.

Using a credit card abroad is largely the same as using one domestically. If you have an American Express or Discover card, you may find it less widely accepted than a Visa or Mastercard. But this is changing all the time, with both the former issuers working to expand their reach. No matter what issuer you have though, you will likely have to pay a foreign transaction fee every time you swipe your card. This is the main difference between using a card at home and using it abroad.

But many cards will waive foreign transaction fees. So if you plan to be using your card frequently overseas, you should consider applying for such a card as you stand to save considerably by doing so.