7 Tips for Using a Credit Card Abroad

Key insights:

• Choose a credit card with travel benefits and no foreign transaction fees
• You may need to notify your card issuer before traveling internationally to help avoid fraud alerts and declined transactions
• Pay in local currency rather than accepting dynamic currency conversion to reduce foreign transaction fees
• Bring multiple cards in case one is lost, stolen or not accepted at certain merchants

Planning an international trip? Your credit card can be a valuable travel companion. But using a credit card internationally requires some preparation to avoid unexpected fees, declined transactions and other hiccups that could disrupt your trip.

Fortunately, there are credit cards with travel benefits, such as no foreign transaction fees and fraud protection while overseas. However, not all credit cards are created equal when it comes to international travel. Before you board, it’s important to carefully research and compare your credit card options.

Here are 7 practical tips to keep in mind when using a credit card abroad.

Compare cash to credit cards for overseas spending

Using your credit card can make spending more convenient during a trip, especially a long one. With credit cards, you won’t have to withdraw and carry as much cash, and you’re not liable for unauthorized charges.

If you want to keep cash on hand for smaller expenses or vendors who don’t accept credit cards, it pays to plan ahead. Your bank may be able to exchange U.S. dollars for foreign currency, and it may cost you less than using an ATM or exchanging money at your destination. While it can help to have some cash when you travel, it may be more cost-effective to pay with a credit card, particularly if you have one that doesn’t charge foreign transaction fees.

Other options for getting cash include currency exchanges at airports and hotel kiosks, and ATM withdrawals. While these locations may offer speed and convenience, they may be more expensive than your bank. Pay attention to the fees, and consider limiting transactions at these locations, especially if credit cards are commonly accepted at your destination.

Try to avoid foreign transaction fees

Before you use your credit card internationally, understand whether you’ll be charged foreign transaction fees (usually 1%–3% of your transaction). While that might not seem like a lot, those fees could add up fast if you plan to use your credit card for big-ticket items like your hotel or car rental.

How do you know whether your credit card charges foreign transaction fees and, if so, how much? Check the terms and conditions of your credit card or call your credit card issuer and ask. If your credit card charges foreign transaction fees, consider switching to one that avoids them.

Many Citi travel credit cards don’t charge foreign transaction fees, making them ideal for international trips. For example, the Citi^® / AAdvantage^® Platinum Select^® card offers this benefit and lets you earn 2X AAdvantage^® miles for every $1 spent at restaurants, gas stations and on eligible American Airlines purchases.

Use secure payment methods abroad

When using your credit card internationally, chip technology can help to make your trip easier and more secure.

Many credit card issuers have transitioned customers to chip-enabled credit cards. This technology is typically more secure than the standard swipe payment method, since chips generate unique keys for each transaction that cannot be reused.

American consumers may still be getting used to tapping their chip-enabled cards instead of swiping. Fortunately, most credit cards now come with chip technology, helping to make international travel smoother.

Inform your credit card issuer before traveling internationally

Credit card companies are always on the lookout for potential fraud to help protect their customers. This can sometimes make it tricky to use a credit card internationally.

If you normally make in-person transactions in the United States and it’s your first trip abroad, you could experience a declined transaction — and even a locked account. Informing your credit card issuer in advance of your international trip can help you avoid fraud alerts and the inconvenience of having your card declined.

Downloading your credit card issuer’s mobile app before traveling internationally is also a good idea. This could help to make it easier to contact the credit card company in the event of an issue. For instance, Citi cardmembers can manage their accounts and lock misplaced credit cards through the Citi Mobile^® App, helping to provide peace of mind while traveling.

Check your credit card benefits for foreign travel

In the excitement of planning an overseas adventure, it’s easy to forget other ways your credit card might help you. Access to members-only airport lounges and priority boarding may be among the amenities that help you relax on your way to your destination.

Before using a credit card internationally, be sure to check the benefits your credit card offers so you can take advantage of them. For example:

• The Citi^® / AAdvantage^® Executive Card offers access to over 100 Admirals Club® lounges and partner lounges worldwide as well as priority boarding 
• The Citi Strata Elite^℠ Card offers a $300 annual hotel benefit for 2 nights or more, plus, enjoy lounge access with a Priority Pass^℠ Select membership and 4 American Airlines Admirals Club^® passes each year

Perks like these can help to enhance your travel experience and help you save money while overseas.

Avoid dynamic currency conversion

When making a purchase with your credit card in another country, some merchants offer dynamic currency conversion. This lets you see the conversion and pay in U.S. dollars, if you choose.

While dynamic currency conversion may seem convenient, the merchant’s service provider often charges more for this service than if you paid in the local currency. The exchange rate is also generally less favorable. And, paying in U.S. dollars with dynamic currency conversion typically can’t help you avoid foreign transaction fees that would normally apply, since you’re still using your credit card to make purchases outside the U.S.

For these reasons, dynamic currency conversion can be more expensive for purchases abroad. Fortunately, dynamic currency conversion is optional; you can decline it and choose to pay in the local currency.

Carry more than one credit card for overseas travel

Close to home, you can often get away with just one credit card in your wallet. When traveling internationally, you might want to bring 2 or more in case an overseas vendor doesn’t accept 1 of the credit card networks. Having a few credit cards can also come in handy if one of them is lost or stolen.

On the other hand, while it can be helpful to bring more than 1 credit card when traveling internationally, limiting the number you carry reduces hassle if they go missing. Taking only a few cards also reduces the time needed to notify issuers of your travel plans.

Instead, consider pairing cards strategically. For example, you may carry a Citi Strata Elite^℠ Card for everyday spending, and the Citi^® / AAdvantage^® Globe^™ Card for travel perks, including priority boarding on American Airlines flights and $100 annual statement credit on inflight purchases.

Make the most of your next international trip

Using a credit card abroad doesn’t have to be complicated. Preparation is key. By choosing the right credit card and understanding your benefits, you can travel with confidence and convenience.

Ready to explore your options? Discover Citi’s travel reward credit cards and find the right card for your next getaway.

Disclosure: This article is for educational purposes. It is not intended to provide legal, investment, or financial advice and is not a substitute for professional advice. It does not indicate the availability of any Citi product or service. For advice about your specific circumstances, you should consult a qualified professional.