Is using a credit card internationally a good idea?

Using a credit card internationally is the best way to go about paying for things when you’re abroad. It’s safer because you don’t have to carry as much cash, and all major credit card companies give you have $0 fraud liability guarantees. Using a credit card internationally also gets you the best currency exchange rates, and it’s a great opportunity to earn rewards.

Using a credit card internationally isn’t the same as using a credit card domestically, though. There are a few guidelines to follow, such as using a no foreign transaction fee credit card on the Visa or Mastercard network. And there are several other items you should be aware of, including travel alerts, chips and dynamic currency conversion.

Here’s are some tips for using a credit card internationally:

• Credit cards allow you to minimize the amount of cash you carry abroad and provide the opportunity to earn rewards. They also come with $0 fraud liability.
• Many credit cards come with foreign transaction fees when you buy from internationally-based merchants. These fees are typically 1%-3% of the purchase amount. If you go abroad, you should get a card with no foreign transaction fee.
• Many credit card companies ask that  you set a “travel alert” before leaving the country. It’s not mandatory. But if you don’t, they might suspect that international purchases are fraud and suspend your spending privileges until you notify them otherwise.
• You’ll have a smoother experience using a credit card internationally if it’s a “chip” card. Many unmanned payment terminals abroad will not take cards that have only a magnetic stripe. And merchants may even give you a hard time if your card doesn’t have a chip.
• Pay in the local currency. Merchants may offer to let you pay in U.S. dollars, a practice known as Dynamic Currency Conversion. But it’s often an excuse to use an unfair exchange rate and overcharge you.

If you’re in the market for a credit card to use internationally, some of the best cards for international travel are Capital One Venture Rewards Credit Card, Chase Sapphire Preferred® Card and Citi Premier® Card.

Yes, of course! Credit cards are a great way to pay when abroad. They're safer to carry around than cash is, and some of them don't charge foreign transaction fees. It's very easy to use them, and you can still earn rewards for your spending.

Using a credit card internationally is a good idea if you own a card with no foreign transaction fees. Otherwise a debit card is the way to go.