Yes, you can use your credit card internationally, but fees and foreign exchange rates will explore
Most major credit cards work outside the United States, but using them abroad costs money beyond your regular purchase price. Your card issuer charges a foreign transaction fee — typically 1% to 3% of each purchase — and applies an exchange rate that includes their own markup. Some cards waive these fees entirely. Before you travel, contact your card issuer to confirm your card will work in your destination country, ask about their foreign transaction fees, and let them know your travel dates so they don't block your card as fraud.
The card networks themselves — Visa, Mastercard, American Express, Discover — operate in most countries, but acceptance varies widely. Visa and Mastercard are accepted almost everywhere. American Express and Discover have much smaller networks outside the United States. Smaller towns, rural areas, and local businesses often take only cash, so plan to carry some local currency regardless of your card.
Key Takeaways
- Foreign transaction fees range from 1% to 3% per purchase, and some cards charge no fee at all — check your card's terms before traveling.
- Your card issuer sets the exchange rate they use, which is usually higher than the mid-market rate you see online, so the actual cost of your purchase is higher than it appears.
- Notify your card issuer of your travel dates before you leave, or your card may be declined as a fraud precaution.
- Visa and Mastercard are accepted in most countries; American Express and Discover have much smaller acceptance outside the United States.
- ATMs abroad usually offer better exchange rates than currency exchange booths, but your bank may charge a fee for out-of-network withdrawals.
How foreign transaction fees work
Every time you swipe your credit card in another country, your card issuer charges you a percentage of the purchase amount as a foreign transaction fee. This fee appears on your statement as a separate line item, usually labeled "foreign transaction fee" or "international transaction fee." The fee is calculated on the total amount you spent in that currency, converted to dollars.
The size of the fee depends on your specific card. Most standard credit cards charge between 1% and 3%. Some premium travel cards, business cards, and cards issued by certain banks charge no foreign transaction fee at all. A few cards charge a flat fee per transaction instead of a percentage. Check your card's terms and conditions or call your issuer's customer service line to find out your exact fee before you travel.
The foreign transaction fee is separate from the exchange rate markup. Even if your card has no foreign transaction fee, you will still pay more than the mid-market rate because your issuer adds their own markup to the exchange rate they explore to your purchase.
Exchange rates and how your issuer sets them
When you make a purchase in a foreign currency, your card issuer converts it to dollars using an exchange rate. That rate is not the same as the mid-market rate you see quoted online — it includes a markup that your issuer keeps. The markup is usually 1% to 2% above the mid-market rate, though some issuers charge more.
You cannot negotiate the exchange rate your issuer uses, and you cannot choose a different rate. Your issuer sets it unilaterally. The rate they explore may also differ slightly from the rate they quote you, because the rate changes constantly throughout the day and your transaction may settle hours or days after you make the purchase.
If you want to know the true cost of a purchase before you buy, use a currency converter that shows the mid-market rate, then add 1% to 3% for the issuer's markup and your foreign transaction fee. That total is closer to what you will actually pay.
Notifying your issuer before you travel
Call your card issuer at the number on the back of your card and tell them the countries you will visit and the dates you will be there. Most issuers have a travel notification system that takes a few minutes to set up. Providing this information prevents your issuer from blocking your card as a fraud precaution when you make purchases in an unfamiliar location.
If you do not notify your issuer and your card is declined, you will have to call them from abroad to unblock it — an expensive and stressful situation if you are without access to a phone or if you are in a time zone where their customer service is closed. Some issuers allow you to set up travel notifications through their mobile app or website, which is faster than calling.
Travel notifications typically expire after 30 days, so if you are traveling for longer than a month, you may need to renew the notification or call again to extend it.
Which card networks work where
Visa and Mastercard are accepted in the vast majority of countries and at most merchants that take cards at all. If you are traveling to a developed country or a major city in any country, Visa or Mastercard will work almost everywhere that accepts cards.
American Express is accepted in many developed countries and at major hotels, restaurants, and retailers, but acceptance drops sharply in smaller towns and developing countries. Many local businesses do not take American Express because the fees they pay to accept it are higher than for Visa or Mastercard.
Discover has the smallest network outside the United States. It is accepted in some developed countries and at some major merchants, but you should not rely on it as your primary card abroad. If you have a Discover card, bring a Visa or Mastercard as a backup.
Regardless of which card you bring, plan to carry cash in the local currency. Small vendors, street markets, taxis, and rural businesses often do not accept cards at all.
Using ATMs abroad for cash withdrawals
ATMs in other countries usually offer better exchange rates than currency exchange booths or your hotel, but your bank may charge a fee for using an out-of-network ATM. The fee is typically $2 to $5 per withdrawal, and the foreign bank may charge an additional fee on their end. Some banks waive out-of-network ATM fees for customers who travel frequently or maintain high account balances.
Before you travel, ask your bank whether they have a partnership with banks in your destination country that would let you use their ATMs without a fee. Some large banks have reciprocal agreements that waive fees for their customers. If your bank does not have a partnership, withdraw larger amounts less frequently to minimize the number of fees you pay.
Use ATMs during business hours if possible, and use ATMs inside banks or in well-lit public areas rather than standalone machines on the street. Notify your bank of your travel dates before you withdraw cash abroad, just as you would for credit card use.
Comparing cards with and without foreign transaction fees
| Card Type | Foreign Transaction Fee | Best For | Trade-off |
|---|---|---|---|
| Standard card | 1% to 3% | Occasional travelers | Lower annual fee, but higher cost per purchase abroad |
| Travel rewards card | 0% | Frequent travelers | Higher annual fee, but no foreign transaction fees and rewards on travel purchases |
| Premium travel card | 0% | Frequent international travelers | Highest annual fee, but includes travel protections, concierge, and lounge access |
If you travel internationally once a year or less, a standard card with a foreign transaction fee is usually cheaper than paying an annual fee for a travel card. If you travel internationally several times a year, a travel rewards card with no foreign transaction fee and rewards on travel purchases will save you money over time. Calculate your own break-even point by multiplying your average annual spending abroad by your card's foreign transaction fee, then compare that to the annual fee of a travel card.
What to do if your card is declined abroad
If your card is declined, the most common reasons are that you did not notify your issuer of your travel, the merchant's terminal is not compatible with your card network, or there is a temporary connectivity issue. Ask the merchant to try the transaction again. If it is declined a second time, ask if they accept a different card network or if they can process the payment manually.
If you have a backup card, use that instead. If you do not, find an ATM and withdraw cash. Call your card issuer's customer service number (on the back of your card) to ask why your card was declined. If it was blocked as fraud, they can unblock it when ready. If the decline was due to a technical issue or merchant incompatibility, they can advise you on next steps.
Keep your issuer's international customer service number written down or saved in your phone before you travel, because calling from abroad can be expensive and you may not have reliable internet to look up the number.
Frequently Asked Questions
Do I need to convert my currency before I travel?
No. You can use your credit card to pay in the local currency and let your issuer convert it, or you can withdraw local currency from an ATM. Both methods are usually cheaper than converting currency at an airport or hotel. If you want to carry some local currency when you arrive, exchange a small amount at your bank before you leave rather than at the airport, where rates are worse.
What happens if my card is lost or stolen while I am traveling?
Call your card issuer when ready using the customer service number on the back of your card or on your statement. They will cancel the card and can issue a replacement to your home address or, in some cases, to a local address or hotel. Ask about their emergency cash advance options while you wait for a replacement card. Most issuers can provide emergency funds within 24 hours.
Can I use my credit card to pay for hotels and rental cars before I travel?
Yes, and this is usually a good idea because you lock in the exchange rate at the time of booking rather than at the time of travel. Many hotels and rental car companies also offer better rates when you prepay. Read the cancellation policy carefully, because prepaid bookings often have stricter cancellation terms than pay-at-arrival bookings.
Will using my credit card abroad hurt my credit score?
No. Using your credit card abroad does not affect your credit score as long as you pay your bill on time. Your credit score is based on your payment history, credit utilization, length of credit history, and credit mix — not on where you use your card. Pay your statement balance in full when you return home to avoid interest charges on foreign purchases.
What if the exchange rate changes between when I make a purchase and when it settles?
You have no control over this, and you cannot dispute a charge based on exchange rate changes. Your issuer applies the exchange rate on the settlement date, not the purchase date, which is usually 1 to 3 days after you swipe your card. The rate may be better or worse than the rate on the day you made the purchase. This is why using a credit card is riskier than using an ATM if exchange rates are moving rapidly.