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Ask the Experts! Credit Cards For International Travel
April 25, 2019
What's the most important thing to look for in a credit card for international travel?
Look for a Visa or Mastercard that does not charge a foreign transaction fee. These fees can add up to 1-4% of your purchase, and sometimes include an additional fixed dollar charge. Those fees can really add up over an international trip. Consumers should check for fees charged by the credit card company (e.g. Visa) and by the issuer (e.g. Bank of America).
What’s the biggest credit card mistake that international travelers make?
Not telling the issuer that you will be traveling. With increasing cyber theft and other credit card fraud, credit card companies routinely look for unusual changes in customers’ spending habits. If all of your charges have been in and around your home city of Topeka and suddenly your card is being used at a store in Bangkok, the credit card company will likely assume that your card has been compromised and will freeze the account. To avoid having to sort out this problem overseas, simply file a travel notice with your issuer before your trip, telling them the dates of travel and the countries you will be visiting. You can file a travel notice by calling the issuer or often via their website.
Would you ever recommend getting an American Express or Discover credit card for international travel?
American Express and Discover are not the best choices of cards for international travel. They are not as widely accepted around the world as Mastercard and Visa.
Do you know of any international destinations where a U.S. credit card will not work?
Outside of reclusive countries like North Korea, credit cards are accepted around the world, but not necessarily for as many transactions as in the U.S. I have used my credit card for hotel stays and at medium size stores and restaurants in Cambodia, Vietnam, Uruguay, and Ghana. But travelers from the U.S. should be aware that many small businesses, such as “mom and pop” restaurants or corner shops, might not accept credit cards at all. Also, even larger establishments might not accept credit cards for smaller purchases. I don’t want to be forced to use only bigger businesses because of my reliance on a credit card, so I routinely use my U.S. debit card to withdraw some local currency from an ATM in the country I’m traveling in (again, file a travel notice with your bank to use your debit card overseas). Try to avoid making cash withdrawals using your credit card though – you will be charged interest starting from the time you withdraw money.