Using a credit card internationally: 8 tips

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, buy souvenirs and do a whole lot more.

Read on for helpful tips about using your credit card abroad.

What you’ll learn:

• A credit card can give you a safe, convenient way to make purchases while you’re traveling in other countries. 
• 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.
• Choosing 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.

Credit cards can offer a safe, convenient way to pay while you’re abroad. Here are eight helpful tips for using a credit card when you’re traveling internationally:

It’s not as common as it once was, but 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 no longer requires you to share your travel plans when you’re heading out of the country. But it still recommends updating your contact information in case it needs to reach you.

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

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

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

Here’s an example of how it works. You’re in Mexico and pay 2,000 pesos for pottery, and you may wonder how much that is in U.S. dollars. Dynamic currency conversion immediately tells you what the peso-to-dollar amount is at the point of purchase. But you might have to pay extra 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 or pay for dynamic currency conversion to access your money abroad. You can reject it at the point of sale.

Chip cards are more secure than the standard magnetic stripe cards. That’s because each transaction with a chip card creates a unique one-time code that enables the card issuer to securely process the transaction. 

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 some card issuers might use chip-and-signature technology instead.

Some credit cards offer travel insurance, which can help protect you financially if something goes wrong during your trip.

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’ve 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.

Before you leave on your trip, get familiar with your credit card’s benefits. These benefits might include:

• TSA PreCheck® or Global Entry enrollment credit: If you have a travel credit card like the Capital One Venture, Venture X, Venture X Business or Spark 2X Miles cards, you can get a statement credit for TSA PreCheck® or Global Entry.¹ These programs can help you move through the airport more quickly and make travel easier. 

• Airport lounge access: Eligible Capital One cardholders can enjoy complimentary access to Capital One Lounges and participating Priority Pass™ lounges worldwide. 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 earn extra rewards on hotels and rental cars when they book through Capital One Travel. Venture X cardholders earn 10X miles on hotels and rental cars and 5X miles on vacation rentals and flights.

• Access premium experiences: Eligible Venture X and Venture X Business 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, and early check-in and late checkout when available.

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.

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

• Simplified purchases: Most major credit cards are accepted worldwide. Paying with a credit card can help you 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.

Keep in mind that you may also need a credit card to make reservations for things such as hotel rooms and rental cars. 

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:

Traveling to another country can be a fantastic adventure. But you probably don’t want that adventure to include any unwanted surprises. Having the right credit card can help you avoid things like unexpected fees.

Capital One offers travel rewards credit cards with exclusive benefits and elevated rewards that can help make your travel experience more enjoyable. View important rates and disclosures.

• Explore travel rewards cards with unlimited miles you can actually use. 

• Earn a one-time 75,000-mile bonus and receive an additional 10,000 bonus miles every year, starting on your first anniversary, with the Venture X card.

• Earn unlimited 2X miles on every purchase, every day, and earn a one-time 75,000-mile bonus with the Venture card. 

• Earn unlimited 1.25X miles on every purchase, every day, with no annual fee with the VentureOne card.