Credit Cards Are Convenient, but Cause Unexpected Headaches When Traveling Internationally
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Credit Cards Are Convenient, but Cause Unexpected Headaches When Traveling Internationally

Foreign-transaction fees, cash-advance charges and currency-conversion tricks can add up fast if you are not prepared

August 1, 2025

When you head abroad, it is easy to assume your credit cards will work exactly as they do at home. In reality, fees, acceptance quirks and anti-fraud safeguards can turn a dream trip into a customer-service marathon. Review the points below before you pack so your plastic works for, not against—you.

  1. Foreign-transaction fees

    2. Most U.S. issuers still add 3 percent to any purchase that is processed outside the country or billed in a foreign currency. A growing list of travel-oriented cards, Chase Sapphire (Preferred and Reserve), Capital One Venture, Citi Premier, Amazon Prime Visa and almost all credit-union EMV cards—charge no foreign-transaction fee. If your current card adds the surcharge, consider applying for a no-fee alternative or using a debit card that rebates the fee, such as Charles Schwab Bank’s Investor Checking.

  2. Cash-advance fees and interest

    3. Withdrawing cash from an ATM on a credit card triggers three separate costs: a cash-advance fee (usually 4–5 percent or a flat $10, whichever is higher), an ATM operator fee and immediate interest at 25 percent APR or more. Unlike purchases, there is no grace period; interest starts the day the cash comes out. If an emergency requires a credit-card withdrawal, take one large advance instead of several small ones.

  3. Dynamic currency conversion (DCC)

    4. Some terminals abroad offer to charge you in U.S. dollars instead of local currency. Decline. Merchants set their own exchange rate, often 5–8 percent worse than the rate your network would apply—and you can still be hit with the foreign-transaction fee because the charge travels through a non-U.S. bank. Ask to pay in local currency, and review your receipt before you sign.

  4. Card acceptance

    • Visa and Mastercard remain the safest bets worldwide.
    • American Express acceptance has expanded in Europe and Australia but is still spotty in parts of Asia, Africa and South America.
    • Discover and Diners Club operate on the same network outside the U.S. Acceptance is strong in China, Japan and South Korea, but limited elsewhere.
    • Many unmanned kiosks (train tickets, toll roads, fuel pumps) require chip-and-PIN. Set a PIN with your issuer before departure.

  5. Fraud-prevention holds

    6. Unexpected foreign authorizations can trigger an automatic block. Use your issuer’s travel-notice tool (website, app or phone) and include every transit point. Load the issuer’s app so you can verify alerts instantly without a costly international call.

  6. Perks you may forget you have

    • Trip-delay and trip-cancellation reimbursement (often $300–$500 per person for delays of 6 hours or more).
    • Baggage-delay insurance that reimburses clothing and toiletries after 6–12 hours.
    • Primary rental-car collision coverage on premium cards when you decline the agency’s waiver.
    • No-fee global-entry or TSA PreCheck credits on many cards with annual fees of $95 or higher.
    Check your guide to benefits PDF before you pay cash for duplicate coverage.

  7. Pre-trip checklist
    • Verify that each card’s expiration date is after your return date.
    • Pay down balances to maximize available credit.
    • Store card numbers and 24-hour international collect phone numbers in a secure cloud note or encrypted phone app.
    • Carry at least two cards from different networks and keep them in separate spots (hotel safe versus day wallet).
    • Enable contactless payments, tap-to-pay is standard across Europe and much of Asia.

By choosing a card with no foreign-transaction fee, avoiding dynamic currency conversion, and preparing for chip-and-PIN requirements, you can enjoy the ease of plastic abroad without a surprise bill waiting at home.