5 Helpful Tips for Using Credit Cards Overseas

Vacationing in new and exotic foreign countries can be an exciting adventure, but it can also mean there are a lot of things to plan for that we take for granted in our daily lives. The simple act of paying for goods and services is a good example, as the details can vary across different currencies and borders. This is why it’s important to understand how credit cards work internationally; these tips can help you prepare and avoid any unnecessary hassles.

1. Choose the Right Card

Some credit cards charge foreign transaction fees that can add anywhere from 2 to 4 percent to any purchase made outside your country. So if you’re planning a trip overseas, read the fine print on the cards you already have to determine if using it abroad will trigger any additional expenses. If so, look for a new card that doesn’t charge fees for international use.

Also, when planning out your cash needs for your trip, keep in mind that banks generally charge extra for foreign ATM withdrawals, so you should find out the fee details and look into alternate options if the costs are too high. Remember to research these sorts of items well in advance of your trip, as any application processes may take a while. Finally, limit your debit card use abroad to ATM transactions unless absolutely necessary, as they offer far fewer safeguards against identity theft as well as direct access to the funds in your bank account if thieves use it for fraudulent purchases.

2. Communication is Key

It’s a good idea to notify your credit card companies when and where you’ll be traveling, because if you forget they may flag any unusual foreign activity and cut off access to your card thinking that it’s been stolen. It only takes a phone call from you to re-activate your card if this happens, however the logistics for doing so may be more difficult than normal depending on your destination so it’s better to take care of this in advance.

3. Travel with Backup

Though you should limit your credit card use to a single credit card if possible – and potentially a debit card for ATM transactions – it’s a good idea to bring a few spare cards just in case. If your card is compromised, damaged, or accidentally shut off, you will need some means to access money until a replacement arrives. Don’t forget to keep these spare cards hidden in a safe place so they’re still there if you need them.

4. Plan for Emergencies

Traveling can be unpredictable, so make sure you prepare to deal with any crises just in case. Your credit card company should have an international customer care line to handle any issues encountered abroad, so make note of that and write it down in a few places in case you need to report a theft. Also be sure you know the company’s processes for replacing or closing credit cards if stolen or damaged so you can make preparations as needed. Then look into getting a local phone and/or number for the country you’re visiting. Either pick up a prepaid phone when you arrive or see what international options are available with your cell phone carrier (e.g. using a local SIM card).

5. Stay Vigilant

Though it’s a vacation for you, it’s important to remember to not let your guard down. Identity theft doesn’t take time off, so you need to stay alert and monitor card balances consistently during your trip as well as credit reports even after you return.

Fraud is scary and can do a lot of damage to your ability to borrow money, but that doesn’t mean overseas travel dooms you to searching for credit cards for poor credit. As long as you prepare appropriately and remain watchful, you can enjoy a lovely vacation and avoid any bad experiences.