What makes a credit card good for international travel
A travel credit card reduces the cost of being abroad in two ways: it either earns rewards on the spending you're already doing, or it cuts the fees that banks normally charge when you use your card outside the country. The best cards do both. The card itself doesn't matter as much as what it charges you when the transaction happens in a foreign currency.
Most credit cards charge a foreign transaction fee — typically 1% to 3% of every purchase made outside the United States. A card with no foreign transaction fee saves you that percentage on every meal, hotel, train ticket, and souvenir. On top of that, some cards earn bonus rewards on travel purchases, or they waive annual fees if you travel enough to justify the cost.
The second layer is how the card handles currency conversion. Your bank sets the exchange rate it uses, and some banks build in a markup. A card that uses the Visa or Mastercard exchange rate (the mid-market rate) costs you less than a card that uses the bank's own rate. You cannot negotiate this — it's set by the card issuer — so it matters which card you choose before you leave.
Key Takeaways
- Foreign transaction fees (1% to 3% per purchase) are the biggest cost of using a US credit card abroad, and many travel cards charge zero.
- Bonus rewards on travel categories — flights, hotels, restaurants — add value on top of no foreign fees, but only if you actually use those categories.
- Annual fees ($95 to $550) make sense only if you travel frequently enough that the rewards and fee waivers cover the cost within a year.
- Notify your card issuer before you travel so they don't block transactions as fraud, even if the card has no foreign fees.
- Chip-and-PIN cards work in more countries than signature-based cards, and contactless payment is standard in much of Europe and Asia.
Cards with no foreign transaction fees and strong rewards
The Chase Sapphire Preferred charges no foreign transaction fee and earns 2 points per dollar on travel purchases (flights, hotels, rental cars, taxis, trains, and some restaurants). It has a $95 annual fee, but the card comes with a $50 annual travel credit that offsets part of it. The points are worth at least 1.25 cents each when you redeem them through Chase's travel portal, so 2 points per dollar on travel spending is meaningful.
The Capital One Venture X earns 5 points per dollar on flights and hotels booked through its travel portal, and 2 points per dollar on all other purchases. It has a $395 annual fee but includes a $300 annual travel credit, a $100 airline fee credit, and lounge access at some airports. This card makes sense only if you fly multiple times a year and stay in hotels regularly.
The American Express Gold Card earns 4 points per dollar on flights and restaurants, and 1 point per dollar on everything else. It has a $250 annual fee and includes a $120 dining credit and a $100 airline fee credit. Like the Venture X, it's built for frequent travelers who spend heavily on those two categories.
If you want no annual fee at all, the Chase Sapphire Preferred competitors in the no-fee space are fewer. The Citi Prestige (now closed to new cardholders) and older no-fee travel cards have largely been replaced by cards with annual fees that offset the cost through credits. A no-fee card that earns rewards on travel is rare; most no-fee cards earn 1 point per dollar on everything, which is lower than category-specific cards.
How to compare annual fees against the rewards you'll actually earn
An annual fee only makes sense if the rewards and credits you get back exceed what you pay. Start by adding up the credits the card offers — the travel credit, airline fee credit, dining credit, or other perks that come automatically each year. Then estimate how much you'll spend in the card's bonus categories during a year.
If you spend $5,000 a year on flights and hotels, and the card earns 3 points per dollar on those purchases, that's 15,000 points. If each point is worth 1.25 cents (a conservative estimate), that's $187.50 in value. If the card has a $95 annual fee and a $50 travel credit, your net cost is $45, and you've come out ahead by $142. If you spend $2,000 a year on those categories, the math doesn't work.
Write down your actual spending from the past year in each bonus category. Don't estimate what you think you'll spend — use what you actually spent. Then multiply by the points per dollar and the value per point. Subtract the annual fee and add back any credits. If the number is negative, the card costs you money. If it's positive but small (under $50), a no-fee card might be simpler.
Cards that work everywhere, even without bonus categories
If you don't spend much on flights or hotels, or if you want a simpler card, a flat-rate card with no foreign transaction fee is enough. The Chase Sapphire Preferred earns 1 point per dollar on purchases that don't fall into its bonus categories, which is solid for everyday spending abroad.
The Capital One Quicksilver earns 1.5% cash back on all purchases with no foreign transaction fee and no annual fee. It's straightforward: every dollar you spend abroad returns 1.5 cents to your account. No categories to track, no credits to remember. The downside is that 1.5% is lower than the 2 to 4 points per dollar you get from category cards on their bonus categories, but it's higher than the 1% you'd earn on a basic rewards card.
The Citi Double Cash earns 2% cash back (1% when you buy, 1% when you pay the bill) with no foreign transaction fee and no annual fee. It's one of the highest flat rates available. Like the Quicksilver, it has no annual fee and no categories to track, making it a good choice if you travel occasionally but don't want to manage bonus categories.
What happens when you use your card abroad
When you swipe or insert your card in another country, the merchant's bank converts the transaction to US dollars using an exchange rate. That rate is set by Visa, Mastercard, or American Express — not by your bank. Your bank then adds a foreign transaction fee (if it charges one) on top of the converted amount. The total appears on your statement a few days later.
Some cards let you choose the currency at the point of sale — the merchant's terminal will ask "Do you want to be charged in USD or in the local currency?" Always choose the local currency. If you choose USD, the merchant's bank sets the exchange rate, and it's almost always worse than what Visa or Mastercard would charge. This is called dynamic currency conversion, and it costs you money.
ATM withdrawals work differently. When you withdraw cash from an ATM abroad, your bank charges an ATM fee (usually $2 to $5) plus a foreign transaction fee on top of that. Some travel cards waive the ATM fee; most don't. If you need cash, it's usually cheaper to withdraw a larger amount once than to make multiple small withdrawals.
Chip, PIN, and contactless: what you need to work abroad
Most US credit cards have a chip (the small square on the front), but many still use a signature instead of a PIN. In Europe, Asia, and much of the rest of the world, merchants expect a PIN. If your card doesn't have a PIN, you may not be able to use it at unattended terminals like gas pumps, parking meters, or train ticket machines. You can usually still use it at staffed counters by signing, but it's slower and less reliable.
Before you travel, call your card issuer and ask them to set a PIN on your card. Most will do it over the phone in a few minutes. This is different from your online password — it's a 4-digit code you enter at a terminal. Having a PIN makes your card work almost everywhere.
Contactless payment (tap or wave your card instead of inserting it) is standard in Europe, the UK, Australia, Canada, and increasingly in Asia. Most US credit cards now have contactless capability. It's faster than inserting a chip and works at most merchants, though some smaller shops still use chip-only terminals. Contactless doesn't replace chip — it's an additional option.
Protecting yourself from fraud and holds
Before you leave, contact your card issuer and tell them where you're going and for how long. Give them the dates and countries. This prevents the card from being blocked as fraud when you make your first purchase abroad. You can usually do this online through your account, by phone, or through the card's mobile app.
If your card is blocked while you're traveling, you're stuck. You can't call customer service quickly from another country, and even if you do, it takes time to unblock. A single call before you leave prevents this. If you're traveling to multiple countries, list them all.
Keep your card in a separate pocket from your passport and cash. If it's stolen, call the card issuer when ready — the number is on the back of the card, and most have international customer service lines. US credit cards have zero fraud liability, meaning you won't be charged for unauthorized purchases. Report it quickly so the issuer can cancel the card and send a replacement.
Frequently Asked Questions
Do I need a travel card if I'm only going for a week?
If your current card charges a 2% foreign transaction fee and you'll spend $2,000 abroad, you'll pay $40 in fees. If a travel card has no foreign fee but a $95 annual fee, the math doesn't work for one trip. But if you travel twice a year, the annual fee pays for itself. For a single short trip, a no-fee card like the Citi Double Cash makes more sense than paying an annual fee.
What's the difference between points and cash back?
Points are usually worth more per dollar earned (2 to 5 points per dollar) but require you to redeem them through a specific portal or transfer them to a partner. Cash back is simpler — it's a percentage of your spending that goes directly to your account — but the rate is usually lower (1 to 2%). Points are better if you book travel through the card's portal; cash back is better if you want flexibility.
Can I use my credit card in countries that mostly use cash?
Yes, but you'll need to withdraw cash from ATMs, which charges fees. In countries like Vietnam, Thailand, and parts of Eastern Europe, many small merchants don't accept cards. Plan to carry some cash and use ATMs to withdraw it. A card with no ATM fee saves money, but most US cards charge $2 to $5 per withdrawal.
Should I convert my dollars to the local currency before I travel?
No. Exchange rates at airports and currency exchange shops are worse than what your credit card charges. Use your card for purchases and withdraw cash from ATMs as needed. You'll get a better rate both ways than if you convert cash before you leave.
What if my card gets declined abroad?
Call the card issuer's customer service line (the number is on the back of your card) and ask why. It's usually a fraud hold, which they can lift over the phone. Make sure you notified them of your travel before you left. If the card is damaged or the terminal is broken, try a different merchant or ATM. Always carry a backup card from a different issuer in case one doesn't work.