Credit Cards For International Travel

There is one Visa exchange rate for every type of currency, which can change once every 24 hours. And that rate is automatically applied to any international transaction made with a Visa credit card or debit card. You can easily check the latest Visa exchange rates online to get an idea of what to expect when traveling.

Here’s how to see your Visa exchange rate:

1. Go to Visa’s online Exchange Rate Calculator.
2. Select United States Dollar for your card’s currency.
3. Select the currency used by the merchant.
4. Enter your bank fee (foreign transaction fee), if applicable. Ideally, you should use a no foreign transaction fee credit card.
5. Put in today’s date (the tool can’t predict the future).
6. Click “Calculate Exchange Rates.”

Using a no foreign transaction fee Visa credit card when traveling abroad will save you up to 9% compared to converting hard currency, according to WalletHub’s Currency Exchange Study. But a Mastercard will do the trick, too. There’s actually not much difference between the exchange rates offered by these two worldwide card networks.

Lastly, you should always avoid Dynamic Currency Conversion (DCC). This is when a foreign vendor converts the price of a purchase to U.S. dollars, supposedly for your convenience. But that gives the merchant a chance to use an unfavorable exchange rate in place of the low rate you’d automatically get from Visa.

There’s a different Mastercard exchange rate between the U.S. dollar and approximately 150 other currencies, and they all fluctuate from day to day. You can easily see what exchange rate your transaction will have by going to Mastercard’s exchange rate calculator. 

It’s very simple to use. All you have to do is put in the date, currency of the merchant, transaction amount, foreign transaction fee (if applicable) and United States Dollar (USD) as your card’s currency. Then click “calculate,” and you’ll see the amount you’re paying in USD at the bottom right. The exchange rate will be to the left of that.

Let’s take a look at some of today’s exchange rates for popular travel spots. These rates are current as of 06/06/18 but are subject to change as time goes on. 

Popular Mastercard exchange rates:

• Euro: 1 EUR = 1.17 USD
• Bahamian Dollar: 1 BHD = 1 USD
• Canadian Dollar: 1 CAD = 0.77 USD
• Great British Pound: 1 GBP = 1.34 USD
• Mexican Peso: 1 MXN = 0.05 USD
• Chinese Yuan Renminbi: 1CNY = 0.16 USD
• Japanese Yen: 1 JPY = 0.01 USD
• Russian Ruble: 1 RUB = 0.02 USD

Credit cards are actually the cheapest way to convert currency. But you may still be subject to a foreign transaction fee, which is an extra charge when you buy from a foreign merchant. While all Mastercards offer the same exchange rates, only some of them charge foreign transaction fees. 

You can compare no foreign fee Mastercard credit cards on WalletHub. And if you’re still unsure about which to apply for, you can join WalletHub for free to get personalized credit card recommendations with high approval odds.

It’s a good idea to get an international debit card before traveling abroad, in addition to the best international credit card for your needs. You won’t be able to use plastic for every purchase. So you’re going to need some cash. And while you could convert hard currency at a bank or airport kiosk, both options are far more expensive than using a Visa or Mastercard debit card to withdraw cash as needed.

You just need to find one with no foreign transaction fee and a low international ATM fee. In general, an ATM fee below 1% is a pretty good deal.

International prepaid credit cards don’t exist. “Prepaid credit card” is made-up term that is sometimes used by prepaid card issuers for marketing purposes. You aren’t extended a line of credit with a prepaid card; it’s more like you are using a debit card without the associated bank account. As long as your prepaid card bears the MasterCard or Visa logo and you notify your issuer of your travel plans, you should be able to use it abroad and it is an “international prepaid card.”

The best credit card for travel in Europe is the Barclaycard Arrival Plus World Elite Mastercard because it offers 70,000 bonus miles when you spend $5,000 in the first 90 days, plus 2 miles per $1 on all purchases. An earning rate that high is hard to beat. And there are no restrictions on airlines or hotels, so you’ll be able to earn and redeem rewards wherever you travel in Europe. Arrival Plus also has only an $89 annual fee, which it waives the first year, plus a $0 foreign transaction fee. You’ll need good credit to get the card.

Another one of the best credit cards for travel in Europe is Capital One Venture, which offers 50,000 miles when you spend $3,000 in the first 3 months. It also gives 2 miles per $1 on all purchases with no booking or redemption restrictions. Venture charges a $95 annual fee. It has a $0 foreign transaction fee and requires good credit for approval.

If you’re looking to rely on a popular European airline, the British Airways credit card and the Lufthansa credit card are both good choices with big initial bonuses and fairly low fees. There are plenty of other cards capable of saving you lots of money on European travel, too.

Here are the best credit cards for travel in Europe:

• Barclaycard Arrival Plus World Elite Mastercard – Best for European Travel Overall
• Capital One Venture Rewards – Best for European Hotel Rewards
• British Airways Credit Card – Best for Bonus European Airline Miles
• Lufthansa Credit Card – Best for Star Alliance Flights
• Norwegian Cruise Line Credit Card – Best for European Cruises
• Chase Sapphire Reserve – Best for European Travel Benefits

Each of the best credit cards for travel in Europe has its own unique perks. Let’s take a closer look at what they can add to your trip.

The British Airways Credit Card offers the best airline bonus for travel in Europe. It offers 50,000 miles for spending $3,000 in the first 3 months, 25,000 more miles for spending $10,000 in the first year and another 25,000 for spending $20,000 in the first year. Plus, you get 3 miles per $1 with British Airways, LEVEL, OpenSkies, Aer Lingus and Iberia and 1 on all other purchases. You can redeem your miles with any Oneworld airline. This card requires good credit and costs $95 per year.

If you fly on Star Alliance more often, you can go for the Lufthansa Credit Card. It offers 20,000 miles after making a purchase and paying the annual fee, plus 30,000 more miles for spending $3,000 in the first 90 days. It gives 2 miles per $1 at Miles & More airline partners and 1 on all other purchases. And there’s also two Lufthansa business lounge vouchers and a companion ticket after a first purchase and every account anniversary. The Lufthansa card requires good credit and costs $89 per year.

The Norwegian Cruise Line Credit Card offers the best savings for European cruises. It offers 10,000 points for making a purchase in the first 90 days. It also gives 3 points per $1 on Norwegian Cruise Line purchases and 1 on everything else. There’s a $0 annual fee and the card requires good credit.

For cardholders searching for the most benefits possible, there’s Chase Sapphire Reserve. It offers 50,000 points for spending $4,000 in the first 3 months and gives a $300 annual travel credit. It also offers 3 points per $1 on travel and dining and 1 on everything else. And it comes with a free Priority Pass Select membership and over $1,000,000 in travel insurance. There’s a $450 annual fee and Reserve requires excellent credit.

One thing’s for sure – the best credit card for travel in Europe will have no foreign transaction fees. You don’t want to be charged up to an extra 3% on all your European purchases. It’s also best to get either a Visa or Mastercard, as Discover and American Express have lower rates of international acceptance.

You don’t need to get a European credit card before visiting Europe. But you may need to bring a Visa or Mastercard, depending on your specific destination. Visa and Mastercard are both accepted in more than 200 countries and territories worldwide, including all European countries. American Express is accepted in all European countries but may not be accepted by the specific merchant you’re doing business with, particularly if it’s a small operation. Discover is accepted in most European countries but not Serbia, Albania, Montenegro, Estonia, Latvia, Lithuania, Belarus, Ukraine or Moldova. It’s also a hit-or-miss with specific merchants in the other countries.

If you’re wondering about whether European card readers are compatible with American credit cards, you’ll be fine anywhere there’s a person to check you out. That’s true whether you have a chip card or an older card with only a magnetic stripe. The one place you may need a specific type of card is at an unmanned payment terminal, such as you might find in a train station or parking garage. In that case, not even a chip-and-signature card will work. You’ll need to use a chip-and-PIN credit card or cash. But that shouldn’t amount to much more than a minor inconvenience, even though most U.S. chip cards are the signature variety.  

Finding a credit card with no foreign transaction fees should be a bigger concern before traveling to Europe. The average credit card charges 1.61% of every purchase you make abroad, which can add up to a lot over the course of a trip.

Here’s are the best European credit cards:

• Best Earning Potential - Capital One Venture Rewards: 50,000 points when you spend $3,000 in the first 3 months, worth $500 in travel. 10 miles per $1 at hotels.com/venture and 2 everywhere else. $95 annual fee. Requires good credit.
• Best Bonus - Chase Sapphire Preferred: 50,000 points when you spend $4,000 in the first 3 months, worth $625 in travel through Chase Ultimate Rewards. 3 points per $1 on travel and dining and 1 on everything else. Points worth 25% more when redeemed for travel through Chase Ultimate Rewards. 1:1 point transfer to 11 airline and hotel loyalty programs. No foreign transaction fee. $95 annual fee. Requires excellent credit. 
• Best Airline Card – Lufthansa Credit Card: 20,000 miles when you make an initial purchase. 30,000 more miles when you spend $5,000 in the first 90 days. 2 miles per $1 with Miles & More airline partners and 1 everywhere else. Annual companion ticket and 2 Lufthansa Business Lounge vouchers. No foreign transaction fee. $89 annual fee. Good credit required. ​​​​​​​
• Best for No Annual Fee – PenFed Pathfinder Rewards American Express Card: 25,000 points when you spend $2,500 in the first 3 months. 3 points per $1 on travel (4 for PenFed Honors Advantage Members) and 1.5 on all other purchases. $100 annual air travel credit to be used on fees, lounge access or onboard food and beverages. $100 fee credit for TSA Pre-Check application. No foreign transaction fee. No annual fee. Excellent credit required.

You certainly don’t need a special European credit card. But you do want a card on a network that’s widely accepted in your destination of choice. Mastercard and Visa are your best bets, as they’re both accepted pretty much everywhere in over 200 countries and territories. It’s ideal to get a card with no foreign transaction fee and extra rewards on travel, too.
You might also want to set a travel notice to tell your card’s issuer where and when you’re going. That way, your purchases away from home won’t be confused with fraud.

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 Barclaycard Arrival® Plus World Elite Mastercard®.

You can calculate an exchange rate by dividing the amount of the currency you start with by the amount of the foreign currency you’ll get back. For example, if you have $100 and you get €80 back, your exchange rate would be 100 divided by 80, or 1.25 Euros per dollar. 

Most of the time, someone else will calculate the exchange for you. Credit cards automatically handle currency conversion when you make a purchase from a foreign merchant. The two worldwide card networks – Visa and Mastercard – post their exchange rates online and update them daily. And those rates are quite a bit lower than what banks and airport kiosks charge for exchanging hard currency. In fact, using a Visa or Mastercard credit card with no foreign transaction fee can save you up to 9% on all your international spending, according to WalletHub’s exchange rate study. 

It will generally be more useful for you to know how to calculate the amount of a foreign currency you’ll get based on the exchange rate. You can do that with simple division. Divide your starting amount by the exchange rate to get the converted amount. For example, $100/1.25 = €80. 

Understanding how exchange rates work is vital to make sure you don’t get taken advantage of while traveling. There are a few more things you should know about the process, too.

Here’s how to calculate exchange rates:

• Check your card network’s website. Visa and Mastercard publish daily exchange rates from U.S. Dollars to all other major currencies. Discover and Amex don’t, but card network exchange rates tend to be very similar.
  
• The formula for calculating exchange rates is: Starting Amount (Original Currency) / Ending Amount (New Currency) = Exchange Rate. 
  For example, if you exchange 100 U.S. Dollars for 80 Euros, the exchange rate would be 1.25. But if you exchange 80 Euros for 100 U.S. Dollars, the exchange rate would be 0.8.
• To calculate how much of a foreign currency you’ll get with a particular exchange rate, divide the amount of money you’re starting with by the exchange rate. 

While it’s good to be conscious of exchange rates when you go abroad, using a credit card to automatically access the best conversion rates is a great way to make things simple and relatively inexpensive. 

Just make sure to avoid Dynamic Currency Conversion. That’s when a foreign merchant converts your purchase total to U.S. Dollars, supposedly as a convenience but really to apply a high exchange rate and turn a bigger profit. So always pay in the local currency. 

There can be fees for international credit card use. But they’re avoidable if you make the right moves, starting with picking the right credit card. Foreign transaction fees are the main concern. Nine in 10 credit cards charge them. But since WalletHub tracks 1,000+ credit cards, we’ve got plenty of no foreign fee cards for you to consider.Furthermore, you need to watch out for:

• Dynamic Currency Conversion – This isn’t really a fee, but it could cost you money. In short, you should turn down any merchant’s offer to convert prices into U.S. dollars. They may be doing it just as an excuse to charge a high exchange rate.

• International ATM Fees – These will only come into play if you try to perform a cash advance internationally. And there’s no reason to do so if you bring an international debit card on your trip.

In addition, if you decide to convert hard currency at a local bank or airport kiosk, you’re going to lose a lot to fees and high exchange rates. So try to use plastic for as much as possible when traveling abroad. In particular, a Visa or Mastercard with no foreign fee can save you up to 9% on currency exchange.Finally, if you choose a card that doesn’t offer rental car insurance or general travel insurance, you could be playing with fire.

Yes, you can use your Discover card in China. In general, Discover has less international acceptance than two of the other payment networks, Visa and Mastercard. But in China, Discover states that they have “high merchant acceptance,” which is actually the same phrase they use to describe their acceptance in the United States. In fact, you should be able to use your Discover card everywhere in China except for most merchants in Hong Kong and Taiwan. Within mainland China, you can use it at any merchant that displays a Discover, Diners Club or UnionPay logo (and you can always ask if you don’t see one). UnionPay is a Chinese credit card network, and all mainland Chinese merchants who take credit cards accept UnionPay. But in Hong Kong and Taiwan, you can only use your card if you see a merchant with a Discover or Diners Club logo.

Here’s what you need to know about using a Discover card in China:

• Discover cards can be used at the millions of Chinese merchants with the Discover, Diners Club or UnionPay logo.
• You won’t have to pay foreign transaction fees at Chinese merchants because Discover doesn’t charge them.
• You can get cash advances in China from Citibank, ICBC and Bank of China ATMs. But watch out for the cash advance fees and high interest rates.
  
• All mainland Chinese merchants should take your card. But Discover card acceptance is low in Hong Kong and in Taiwan.

It’s easy to use your Discover card in China, compared to a lot of countries. But you still shouldn’t expect 100% acceptance. It’s always useful to have some extra cash on you, or bring a card with higher global acceptance like a Visa or Mastercard.