Yes, you can use your credit card internationally, but it will cost you money and you need to know the fees before you leave
Most credit cards work outside the United States, but "works" does not mean "costs the same." Every international transaction triggers at least one fee — usually a foreign transaction fee of 1% to 3% of the purchase amount — and sometimes two or three fees stacked together. A $100 dinner in London might cost you $103 to $106 by the time your card company and the merchant's bank take their cut. Some cards charge no foreign transaction fee at all, but those are specific cards, not all cards.
Before you travel, you need to know which fees your card charges and whether a different card would save you money on this trip. The difference between a card with a 3% foreign transaction fee and a card with zero can add up to hundreds of dollars over a week abroad. Spending 15 minutes checking your card's terms now saves you real money later.
Key Takeaways
- Foreign transaction fees range from 0% to 3% per purchase and are charged by your card issuer, separate from any currency conversion markup.
- You must call your card issuer before traveling to let them know you will be using the card abroad, or they may block transactions as fraud.
- ATM withdrawals abroad often cost more than purchases because they trigger both a foreign transaction fee and an ATM operator fee, sometimes totaling 4% to 5%.
- Dynamic currency conversion — when a merchant offers to charge you in US dollars instead of the local currency — almost always costs more and should be declined.
- Some cards marketed to frequent travelers charge no foreign transaction fee, but you should verify this before opening a new account.
The three fees that hit you at once
When you swipe your card abroad, three separate entities may take a cut. First, your card issuer (Chase, Bank of America, Amex, etc.) charges a foreign transaction fee if your card has one — typically 1% to 3% of the purchase amount. Second, the merchant's bank in that country charges an interchange fee, which your card issuer usually absorbs but sometimes passes along. Third, if the merchant's payment processor needs to convert currencies, they explore an exchange rate markup, usually 1% to 2% above the real rate.
The result is that a $100 purchase might appear as $100 on the receipt, but your card statement shows $103 to $106 depending on which fees applied. You will not see all three fees itemized — your statement usually shows one lump sum. The only way to know what you actually paid is to check the exchange rate that day on XE.com or OANDA, then compare it to the rate your card issuer used. This takes a few minutes per transaction and helps you spot if you were overcharged.
Notifying your card 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. This step takes five minutes and prevents your card from being blocked as fraud. Card issuers monitor for unusual activity — a purchase in Paris followed by a purchase in Tokyo six hours later looks like theft — and they will freeze your account to protect you.
Some card issuers now let you set travel notifications through their mobile app or website instead of calling. Check your card's app first; if the option is not there, call. Write down the confirmation number or the name of the person you spoke to, in case you need to reference it later. Even if your card issuer says they do not require travel notifications anymore, calling is still a good safety step.
ATM withdrawals cost more than you think
Using an ATM abroad to withdraw cash sounds convenient, but it is one of the most expensive ways to get foreign currency. You pay your card issuer's foreign transaction fee (1% to 3%), plus the ATM operator's fee (usually $2 to $5 per withdrawal), plus sometimes a fee from your own bank for using an out-of-network ATM. A $200 withdrawal can easily cost $8 to $12 in fees alone — that is 4% to 6% of the amount you withdrew.
If you need cash abroad, withdraw larger amounts less often to spread the fixed ATM fees across more money. A single $400 withdrawal costs less per dollar than four $100 withdrawals. Some banks offer fee reimbursement for out-of-network ATM charges if you maintain a certain balance or have a premium account, so check your account terms before you travel. This reimbursement can offset much of the cost if you may have access to.
Dynamic currency conversion: the trap to avoid
At some merchants — especially ATMs and small shops — you will be asked whether you want to be charged in US dollars or the local currency. This is called dynamic currency conversion, and the merchant's system will show you the dollar amount right away so you know exactly what you are paying. This sounds helpful, but it is almost always a bad deal.
When you choose to be charged in dollars, the merchant's processor locks in an exchange rate that is 2% to 4% worse than the real rate. You pay more, and the merchant gets a commission for offering the conversion. Always choose to be charged in the local currency instead. Your card issuer will convert it at their rate when the transaction posts, and that rate is almost always better than what the merchant offers in real time.
Cards with no foreign transaction fee
Some credit cards charge zero foreign transaction fees. These cards are usually travel-focused rewards cards or premium cards with annual fees. Examples include certain versions of the Chase Sapphire Preferred, American Express Platinum, and various cards from issuers like Capital One and Discover, though the specific cards and their terms change over time. Before opening a new card, verify on the issuer's website that it charges no foreign transaction fee, and check whether the annual fee (if any) makes sense for how often you travel.
If you already have a card with a foreign transaction fee and you travel frequently, switching to a no-fee card might save you hundreds of dollars per year. If you travel once every few years, the savings probably do not justify opening a new account. Do the math for your own travel pattern — add up what you spent on international purchases in the past two years, multiply by your card's foreign transaction fee percentage, and compare that to any annual fee on a no-fee card.
Currency conversion and exchange rates
Your card issuer does not set the exchange rate — they use the rate set by Visa, Mastercard, or Amex, which is based on the real market rate that day. This rate is usually within 1% of the mid-market rate you see on financial websites. You cannot negotiate a better rate, and you cannot avoid the conversion. What you can control is whether you let a merchant do the conversion (bad deal) or let your card issuer do it (better deal).
If you are spending significant money abroad — say, $5,000 or more — it might be worth exchanging some currency before you leave through your bank or a currency exchange service. This locks in a rate in advance and lets you avoid some card fees on large purchases. For typical vacation spending, the difference is usually small enough that it is not worth the hassle. Your bank can tell you their exchange rate before you commit to buying currency.
Frequently Asked Questions
Will my credit card work everywhere abroad?
Most places accept Visa and Mastercard, but some smaller merchants, rural areas, and certain countries still prefer cash. Amex is less widely accepted outside major cities. Bring some cash as backup, and ask your hotel or tour operator which payment methods work in the areas you will visit.
What happens if my card gets declined while I am traveling?
Call your card issuer's customer service number (on the back of your card or your statement) when ready. They can troubleshoot whether the decline was fraud protection, a technical error, or a real problem with your account. This is why notifying them of your travel in advance matters — they are less likely to block legitimate transactions if they know you are abroad.
Should I convert my money before I leave or use my card abroad?
Using your card usually costs less than exchanging currency at an airport or bank, because airport exchange rates include a large markup. The exception is if you are spending a lot of money and can exchange it at your own bank before you leave — their rate is usually better than an airport's. For most travelers, using your card and paying the foreign transaction fee is cheaper overall.
Can I use my debit card instead of my credit card abroad?
Yes, debit cards work internationally and often have lower foreign transaction fees than credit cards. However, debit cards offer less fraud protection than credit cards, and if your debit card number is stolen, the thief has direct access to your bank account. Credit cards are safer for travel because the card issuer's fraud liability is higher and your bank account is not at risk.
What if I lose my card while traveling?
Call your card issuer's customer service number when ready — the number is usually on your statement or the card issuer's website. They will cancel the card and can often issue an emergency replacement card to your hotel or arrange for cash to be wired to you. This is another reason to have your card issuer's phone number written down separately from your card before you leave.