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7 tips for using U.S. Credit Cards Abroad – Finance Monthly

Published

3 days ago

September 17, 2024

7 tips for using U.S. Credit Cards Abroad

Whether you’re planning a relaxing beach vacation, an adventurous backpacking trip, or a business trip abroad, having the right credit card in your wallet can make a significant difference. From saving on foreign transaction fees to earning rewards on your spending, here’s what U.S. travellers should consider when choosing a credit card for international use.

You can find tips for UK travellers to find the right card to use abroad here too.

Prioritise Cards with No Foreign Transaction Fees

One of the most important features to look for in a credit card when traveling abroad is no foreign transaction fees. Many cards charge a fee—typically around 3%—on every purchase made outside the United States. While this may not sound like much, it can quickly add up over the course of your trip.

Fortunately, many credit cards geared towards travellers waive this fee, allowing you to make purchases without worrying about the extra cost.

Popular options with no foreign transaction fees include;

Chase Sapphire Preferred Card

- This card is popular among travellers due to its 2x points on travel and dining and its lack of foreign transaction fees, making it ideal for international use.

Capital One Venture Rewards Credit Card

- Known for its straightforward rewards system, this card offers 2x miles on every purchase and doesn’t charge foreign transaction fees, making it a great choice for frequent travellers.

American Express Gold Card

- This card offers 4x points on dining worldwide (including restaurants abroad) and 3x points on flights booked directly with airlines. It also has no foreign transaction fees.

Consider Cards with Travel Rewards

If you travel frequently, a credit card that offers travel rewards can be a great way to maximise your spending. These cards typically earn points or miles on every purchase, which can be redeemed for flights, hotels, and other travel-related expenses.

For example, the Chase Sapphire Preferred Card offers 2x points on travel and dining, while the American Express Gold Card provides 4x points on dining at restaurants, including those abroad, and 3x points on flights booked directly with airlines. These rewards can help offset the cost of future travel, making your trips even more affordable.

Look for Cards that are widely accepted

While Visa and Mastercard are widely accepted worldwide, some American Express and Discover cards may not be as universally accepted, particularly in smaller establishments or more remote destinations. Before traveling, check which networks are most commonly used in your destination. It’s often a good idea to carry at least one Visa or Mastercard for broader acceptance, even if your primary card is an American Express or Discover card.

major credit cards

Check for Travel Insurance Benefits

Many premium travel credit cards offer valuable travel insurance benefits, which can provide peace of mind during your trip. These benefits might include trip cancellation or interruption insurance, baggage delay insurance, and travel accident insurance.

The Chase Sapphire Reserve offers comprehensive travel insurance, including trip cancellation, emergency evacuation, and travel accident insurance.

While these cards often come with higher annual fees, the protection they offer can be well worth the cost, especially for frequent travellers.

Look for Cards with Airport Lounge Access

If you’re someone who spends a lot of time in airports, having access to airport lounges can make your travel experience much more comfortable. Several travel credit cards provide complimentary access to lounges around the world as part of their benefits.

The Platinum Card from American Express, for example, offers access to the Global Lounge Collection, which includes more than 1,200 airport lounges in over 130 countries. Similarly, the Chase Sapphire Reserve offers Priority Pass Select membership, which grants access to over 1,300 lounges worldwide. Lounges often provide free food, beverages, Wi-Fi, and a quiet place to relax, making your time in transit more enjoyable.

Consider Cards with Chip-and-PIN Technology

While chip-and-signature cards are standard in the U.S., many countries abroad prefer or even require chip-and-PIN cards. Having a card with chip-and-PIN functionality can make it easier to use automated kiosks, such as those found at train stations, gas stations, and parking garages.

Most U.S.-issued credit cards now come with EMV chip technology, but not all offer the ability to set a PIN for transactions. Cards like the Barclaycard Arrival Plus World Elite Mastercard offer chip-and-PIN capability, which can be especially useful in countries where this is the preferred method of payment.

Check for Emergency Assistance Services

Having a card that offers emergency assistance can be invaluable if you encounter issues like lost luggage, medical emergencies, or legal troubles abroad. Many premium travel cards provide 24/7 concierge services, travel assistance, and emergency card replacement.

Use these 7 tips for using U.S. Credit Cards Abroad so you can cut down the costs on your next getaway!

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