Nearly 5 million U.S. citizens took to the skies in February 2024 to travel to another country, according to the Federal International Trade Administration. That’s a 15.7% increase over the previous year.
If you’re among those planning a trip abroad, you may be wondering: Do credit cards work internationally?
In most cases, the answer is yes. But it may depend on where you are traveling and which card you have. Plus, some cards will charge fees for foreign transactions. Before you take your trip, be sure you understand whether your card will work overseas and how to be prepared in case it doesn’t.
Can I use my credit card internationally?
Credit cards operate on a global network so as long as a merchant is a participant in your card’s network, it should accept your card for payment. That is, so long as you’ve notified your card issuer of your travel plans so out-of-country transactions aren’t flagged as potentially fraudulent.
The four major networks are as follows:
- Visa
- Mastercard
- American Express
- Discover
Nowadays, most cards are equipped with a chip which means the card must be tapped or inserted into a terminal to be read. If you still have a card with only a magnetic stripe, you should still be able to use it overseas, but be aware that merchants in some regions may not be as familiar with their use.
You are most likely to run into issues with a magnetic stripe card at self-serve kiosks and terminals. They may be designed to only read chip cards, and you may have to find an attendant to process your payment.
To avoid any awkward situations when trying to pay with a magnetic stripe card, be sure to bring a backup card with a chip. You should also have your PIN memorized in case it is needed to complete a transaction.
Credit cards that can be used internationally
Of the four credit card networks, Visa and Mastercard have the widest reach. If you are traveling someplace that accepts credit cards, your Visa or Mastercard can likely be used without a problem.
The situation with American Express and Discover is slightly different. While both have wide networks, neither has the nearly universal acceptance rate of Visa and Mastercard.
Discover provides a handy map of international acceptance for its cards. According to that, you shouldn’t have trouble using your card in North America, Australia and most of Europe and South America. However, Discover is not accepted in most of Africa and the Middle East as well as in countries such as Russia, Panama, and Serbia.
American Express doesn’t have an equivalent global map, but its cards reportedly can’t be used in a handful of countries such as Iran, Sudan and Cuba.
Even in countries where Discover and American Express are accepted, keep in mind that not every merchant will take these forms of payment. For this reason, having a backup card, preferably a Visa or Mastercard, is always a good idea.
➤ SEE MORE:What are the best credit cards for European travel?
Cards with no foreign transaction fees
When shopping in foreign countries, you may be offered the chance to pay in U.S. dollars instead of the local currency. However, this is often not ideal. Known as dynamic currency conversion, this option may not result in the most favorable exchange rate. What’s more, some merchants may assess additional fees or mark-ups when paying this way.
Instead, use a card with no foreign transaction fees and pay in the country’s currency. You may get a better exchange rate, and you won’t pay any fee either.
Not every card comes with no foreign transaction fees, though. Some cards may charge as much as 3% of the transaction amount for purchases made in another currency. You don’t necessarily avoid the fee with dynamic currency conversion either. In those situations, you could end up paying both the foreign transaction fee and a fee for the dynamic currency conversion.
Some of our top picks for cards with no foreign transaction fees include:
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If you plan to use an American Express card, be sure to confirm whether it has widespread acceptance in your destination country.
Can I use my American credit card in other countries?
The bottom line is that you can use your American credit card in much of the world. But there are no guarantees. Research your destination to determine which payment methods are most commonly accepted.
What’s more, always travel with a back-up payment option. Ideally, this will be a second card that operates on a different network and doesn’t charge foreign transaction fees. Be sure to let both card issuers know that you will be traveling overseas so they don’t inadvertently freeze your accounts for unusual spending behavior.
If you have any questions about how your card will work overseas, talk to your card issuer. And if you don’t already have a travel credit card to rack up points from all your vacation spending, check out the best travel credit cards before booking your trip.
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