7 tips for using a credit card internationally

November 12, 2024 |8 min read

Whether you’re driving into Mexico or jetting off to Monaco, a credit card can come in handy to pay your hotel bill, cover restaurant tabs, purchase souvenirs and do a whole lot more. And if you have a travel rewards credit card, you may be able to use rewards to cover the cost of certain travel expenses.

Before your trip, you might want to take a few steps to understand the advantages your credit card might offer when you’re in another country. Read on for helpful tips about using your credit card abroad.

What you’ll learn:

Before traveling abroad, check whether you need to share your travel plans with your credit card issuer so they don’t flag your card for fraud.
If your card charges foreign transaction fees, you might have to pay a percentage of the transaction amount each time you make a purchase.
Using contactless or chip payments when available can help keep your account more secure.
If you use a credit card to book your trip, your card may offer coverage for things like lost luggage or rental car damage.

1. Check whether you need to share your travel plans

Some credit card issuers might request that you set up a travel notification when you’re away from your home country. That’s so they know you’re abroad and don’t flag your card for potential fraud. You can typically inform your issuer of your travel plans on its website, through its mobile app or by phone.

Capital One and other issuers no longer require you to share your travel plans when you’re heading out of the country. But some issuers still recommend updating your contact information in case they need to reach you about suspected fraud.

2. Consider a card that doesn’t charge foreign transaction fees

Credit cards with foreign transaction fees can add costs to your international travel. These fees can vary between credit card companies, but they could be about 1% to 3% of the price of any purchases you make.

But not all credit cards charge foreign transaction fees. Capital One’s credit cards, for instance, don’t. View important rates and disclosures.

3. Opt out of dynamic currency conversion

On top of foreign transaction fees, you might run into what’s known as a dynamic currency conversion fee.

For instance, if you’re in Mexico and you pay 2,000 pesos for pottery, you may wonder how much that is in U.S. dollars. Dynamic currency conversion immediately tells you what the peso-to-dollar amount is. But you might have to pay for that information—and it could be in addition to the foreign transaction fee. The good news is that you’re not required to use and pay for dynamic currency conversion to access your money abroad—you can reject it at the point of sale.

4. Use contactless or chip payments

When you’re traveling, keeping your card information secure is likely a top priority. Using a contactless card or a chip card can be a good way to do that. And fortunately, most businesses accept them. Contactless or chip cards are more secure than the standard magnetic stripe cards. That’s because each transaction with a contactless card creates a unique one-time code or password that’s read only by the card processing network.

A four-digit credit card PIN may also help protect against fraud. The PIN works with a card’s microchip to boost security. If your card uses a PIN, make sure you know it before traveling abroad.

Keep in mind that not all credit cards use the chip and PIN functionality. Some card issuers might use chip-and-signature technology instead.

5. Understand your credit card’s travel protection policy

If your trip is rockier than you imagined it would be, your credit card may be helpful.

Let’s say your luggage gets lost on the way to your destination. The card you used to pay for your trip may provide full or partial reimbursement for your lost bags. The card you used to book your rental car might also cover damage due to a possible collision. And if you’re enjoying a nice meal out and find you misplaced your credit card, the card issuer may provide an emergency replacement card or cash advance.

For more information about what your card might offer, check the card benefits to see whether travel insurance coverage is included.

6. Take advantage of perks that come with your card

Before you leave on your trip, becoming familiar with your credit card’s benefits is a good idea. These benefits might include the following:

TSA PreCheck® or Global Entry enrollment credit

If you have a travel credit card like Capital One’s Venture, Venture X, Venture X Business or Spark 2X Miles, you’re eligible to receive a statement credit for TSA PreCheck® or Global Entry every four years.¹ These programs can help you move through the airport more quickly and make travel easier.

TSA PreCheck® helps you get through more than 200 U.S. airports a bit faster. Global Entry can help you save time at customs at select airports when returning to the U.S. from international destinations. Keep in mind that Global Entry includes TSA PreCheck®.

Airport lounge access

Some credit cards include airport lounge access among their perks. Your card may offer complimentary entry or special pricing access to lounges like Capital One Lounges. There, you can relax, catch up on emails, grab some food or sip a beverage or two.

Extra rewards on travel expenses

Eligible Capital One rewards cardholders can earn extra rewards on hotels and rental cars when they book through Capital One Travel.

Venture X cardholders can earn 10X miles on hotels and rental cars and 5X miles on vacation rentals and flights through Capital One Travel. Cardholders can also elevate their stays at luxury hotels, resorts and vacation rentals from the Premier Collection with a $100 experience credit to use during every stay.² Other premium benefits include room upgrades, complimentary daily breakfast for two at hotels, early check-in and late checkout when available.

7. Bring cash and other credit cards as backups

Packing your credit card for an international trip can be helpful. Bringing cash, your debit card and other credit cards as backups can also be useful, especially if you keep them in separate places. If you stash just one credit card in your wallet and have no backups, you could be left without access to money if that card is lost, stolen or declined.

You might also want to consider using a digital wallet to store things like credit cards, debit cards, gift cards, boarding passes, hotel reservations and other personal data. Where they’re accepted, digital wallets let you make quick and easy payments. Digital wallets use tokenization to replace your actual card number when you make a payment, keeping your account more secure.

The potential benefits of using a credit card overseas

Using your credit card abroad might offer some additional advantages, including:

Simplified purchases: Most major credit cards are accepted worldwide. This way, you can avoid exchanging cash for the local currency throughout your trip—and potentially paying a higher exchange rate.
Added safety: If your Capital One credit card gets stolen or lost while you’re abroad, you can easily lock the card. And if you find it, you can unlock it just as easily.
Favorable currency exchange rates: Credit cards may offer favorable exchange rates on purchases made when traveling internationally. And when you add in the fact that many travel credit cards don’t charge a foreign transaction fee, your savings can really start to add up.

Overseas credit card use FAQ

Thinking about using a credit card on your next international trip? Here are the answers to some common questions about using a credit card abroad:

Is it better to use a credit card when traveling internationally?

Using a credit card when traveling internationally might have its own advantages. That’s because credit cards can be more secure and easier to use than other payment methods. And you might not have to convert U.S. dollars to a foreign currency before using your card like you would with cash.

If your card is stolen, you might have more options. You may be able to manage your card while traveling through your online account or a mobile app. For instance, Capital One’s credit card lock feature lets you lock your card to prevent future charges.

Is there a fee for using a credit card in a foreign country?

Not all credit card issuers charge foreign transaction fees. But if they do, the fees typically range from 1% to 3% of the transaction amount.

Capital One doesn’t charge foreign transaction fees on purchases made abroad. View important rates and disclosures.

Do I need to tell my credit card issuer that I’m traveling out of the country?

Some credit card issuers may require you to notify them that you’re traveling abroad, but Capital One doesn’t. You’ll still want to make sure your contact information is up to date so your issuer can reach you in case of potential fraud.

Do credit cards automatically convert currency?

When you use your credit card for an international purchase, many credit card issuers automatically convert foreign currencies to U.S. dollars and incorporate the exchange rate. Your credit card statement should reflect the amount in U.S. dollars.

Key takeaways: Using an international credit card

Traveling to another country can be a fantastic adventure. But you probably don’t want that adventure to include any unwanted surprises. Bringing the right credit card and mapping out a strategy for how you’ll pay for everything from souvenirs to meals can help you avoid things like unexpected foreign transaction fees.

Check out Capital One’s travel cards and see how rewarding your next vacation could be. You can even use Capital One’s pre-approval tool to see whether you’re eligible before you apply—without hurting your credit score.

Learn more about FDIC insurance coverage.

¹To receive a statement credit up to $120, you must use your Venture, Venture X, Venture X Business or Spark Miles card to either complete the Global Entry application and pay the application fee, or complete the TSA PreCheck® application and pay the application fee. Credit will appear within 1-2 billing cycles, and will apply to whichever program is applied for first. One statement credit per account every four years, and your account must be open and in good standing when the credit is applied. Refer to the Application or Account Terms for additional details.

²Premier Collection hotel booking experience credit will be applied at checkout by hotel to qualifying charges up to $100 USD or the local currency equivalent. Qualifying charges vary by location, are subject to availability, and must be charged to your room during your eligible stay; contact hotel directly to confirm qualifying experiences. Advance reservations recommended for certain experiences.

In addition to the $100 experience credit, other benefits available to eligible cardholders for Premier Collection hotel bookings include: daily breakfast for two, complimentary Wi-Fi, and (when available) room upgrades, early check-in and late checkout. Premier Collection booking must be made through Capital One Travel in the eligible cardholder’s name, with the cardholder as a member of party traveling, to qualify for benefits. Benefits applied per room, per stay. Hotel terms and conditions apply; a minimum number of nights may be required by the hotel for booking. Benefits cannot be redeemed for cash or combined with other offers unless specified. Participating properties and benefits are subject to change. Offer valid for customer use only unless otherwise permitted. We may disqualify any cardholder from participation and benefits at our sole discretion. Additional terms apply; see travel.capitalone.com/terms-of-service for details.

We hope you found this helpful. Our content is not intended to provide legal, investment or financial advice or to indicate that a particular Capital One product or service is available or right for you. For specific advice about your unique circumstances, consider talking with a qualified professional.

The EMVCo Contactless Symbol and Contactless Indicator, consisting of four graduating arcs, are trademarks owned by and used with permission of EMVCo, LLC.

Capital One does not provide, endorse or guarantee any third-party product, service, information, or recommendation listed above. The third parties listed are solely responsible for their products and services, and all trademarks listed are the property of their respective owners.