How to Use a Credit Card Internationally

Using credit cards while traveling outside of the United States is much more convenient than carrying travelers checks or large sums of cash. However, keep in mind the cost of foreign currency exchange rates and other banking fees before you travel.

Instructions

1

Use the phone number on the back of your credit card to contact your credit card company before you travel. Ask your credit card company if its card is accepted in the areas where you are planning to travel.

2

Discuss the policies in regards to foreign transaction fees. Many credit card companies will charge a transaction fee for each purchase you make in a foreign country using your credit card. Be sure you understand how these charges work. The deal that you think you are getting on that gotta-have item may not be what you thought when you get your credit card statement.

3

Ask your credit card company how it handles converting currencies on your statement. For example if you purchase an item in Japanese yen, what basis does it use to convert the currency on your credit card. Are you going to get stuck with an outrageous currency exchange fee?

4

Prevent your credit card's fraud alert system from kicking in. If a credit card company sees substantial activity in a foreign country, it may trigger its fraud alert system and freeze your credit card. Travel with two credit cards, so you have a back up. You can inform your credit card company of your trip to prevent a freeze to your account. If it happens during your trip, do not panic, just place a call to the credit card company and resolve the misunderstanding.

5

Check with all of your credit card companies to see which one offers the best deals in terms of foreign exchange rate charges. Capital One is known to have no exchange transaction fees. Many of the others charge between one and three percent on foreign-based purchases.

6

Review your credit card policy on how it handles charge disputes in foreign countries. Your company may not be willing to act on your behalf if the charge took place in a foreign country. Understand these terms if you are considering making a major purchase overseas.

7

Travel with two credit cards in hand. They should work at major hotels, restaurants and large tourist shopping areas. Many of these merchants are beginning to have a $30 minimum purchase limit for you to use your plastic. Remember to keep some cash on hand for places that do not accept your card.

8

Using cards such as Visa and MasterCard should not be a problem. Some merchants do not accept American Express because the merchants are charged higher fees for accepting this card. The Discover card is not widely used or accepted overseas.