# Using Credit Cards Abroad: Fees, Currency Conversion and Safety URL: https://emptvl.vercel.app/travel-guides/using-credit-cards-abroad Publisher: Empyrean Travel (https://emptvl.vercel.app/) Last reviewed: 2026-10-19 Using credit cards abroad: avoid foreign transaction fees, always pay in local currency, get cash safely, protect against fraud and manage hotel deposits. **Quick answer:** Use a credit card with no foreign transaction fee, always choose to pay in the local currency rather than dollars, and carry a backup card on a different network. Visa and Mastercard are the most widely accepted abroad; American Express is common at upscale hotels but patchier elsewhere. Tap to pay where you can, and use bank-owned ATMs for cash. - Choose: A card with no foreign transaction fee - At the terminal: Always pay in local currency - Carry: Two cards on different networks - Credit card fraud: Your liability is capped at $50 by law ## Which credit card should you take abroad? Start with the fee. Many cards add a foreign transaction fee, often around 3%, to every purchase made in another currency or processed abroad; many travel cards charge none. Check your card’s terms before you go, because that fee quietly adds up across hotels, meals and shopping. Then think about acceptance. Visa and Mastercard work almost everywhere cards are taken. American Express is widely accepted at international hotels and larger merchants but less so at small shops, taxis and markets. Carry two cards on different networks, stored separately, so one lost wallet doesn’t leave you stuck. ## Should you pay in dollars or the local currency? Always the local currency. When a card terminal, waiter or ATM offers to charge you in U.S. dollars, that is dynamic currency conversion: the merchant’s provider sets the exchange rate, usually with a markup well above your card network’s rate. Declining it almost always costs less. If a receipt shows dollars when you expected euros or yen, ask for the charge to be redone in local currency before you sign or tap. Our currency converter helps you sanity-check prices. ## What is the best way to get cash abroad? Use your debit card at ATMs inside or attached to banks, which are safer and usually charge fairer fees than standalone machines in tourist areas. Decline the ATM’s conversion offer, check your bank’s foreign ATM fees and withdrawal limits before you leave, and take out larger amounts less often to reduce per-withdrawal fees. You still need some cash in many places: for tips, taxis, markets and small cafés. Airport exchange counters usually offer poor rates, so exchange only a small amount there if at all. If you carry more than $10,000 in currency or monetary instruments into or out of the U.S., federal law requires you to report it. ## Do you still need to tell your bank you’re traveling? Often not. Many U.S. issuers no longer require travel notices and rely on fraud detection instead, but some still invite you to add trip dates in their app. More important: turn on transaction alerts, make sure your bank can reach you abroad, and keep the card’s international customer-service number somewhere other than the back of the card. If you will use a travel eSIM, see international phone plans and eSIMs so verification texts still reach you. ## How do you protect your cards from fraud abroad? Use credit rather than debit for purchases. Under federal law, your liability for unauthorized credit card charges is capped at $50, and many issuers offer zero liability. Debit cards are riskier: protection depends on how quickly you report the loss, and stolen funds leave your account while disputes are resolved. Tap to pay where you can, cover the keypad when entering a PIN, and watch for skimmers on ATMs and fuel pumps. Use secure networks for online banking; see travel cybersecurity. ## What about hotel deposits, rental cars and tips on cards? Hotels and car rental companies place authorization holds for incidentals and deposits, which can tie up hundreds of dollars for days. On a credit card that is an inconvenience; on a debit card it is cash you can’t use. Many cards include rental car damage cover, but some exclude certain countries and vehicle types, so read the terms. In some countries, a tip added on a card terminal may not reach your server, so cash is often better. See tipping around the world. ## Frequently asked questions **Q: What is a foreign transaction fee?** A: A foreign transaction fee is a charge some card issuers add to purchases made in a foreign currency or processed by a merchant outside the U.S., often around 3% of the transaction. It can apply even to online purchases from overseas retailers. Many travel-focused credit cards charge no foreign transaction fee, so check your card’s terms before traveling. **Q: Should I pay in U.S. dollars or local currency when traveling?** A: Pay in local currency. When a merchant or ATM offers to convert to U.S. dollars, called dynamic currency conversion, the provider sets the exchange rate, typically with a markup above your card network’s rate. Choosing local currency lets your card network handle the conversion, which almost always costs less, even if your card charges a foreign transaction fee. **Q: Is it safer to use a credit card or debit card abroad?** A: A credit card is generally safer for purchases. Federal law caps your liability for unauthorized credit card charges at $50, and many issuers offer zero liability. With a debit card, your protection depends on how quickly you report the problem, and stolen money leaves your bank account immediately. Use debit mainly to withdraw cash from bank ATMs. **Q: Do I need to carry cash when traveling internationally?** A: Usually some. Cards and tap-to-pay are widely accepted in many countries, but cash is still useful for tips, taxis, markets, small restaurants and rural areas. Carry a modest amount of local currency, withdraw it from bank ATMs on arrival rather than exchanging dollars at the airport, and keep it split between your wallet and a secure place. **Q: What should I do if my card is lost or stolen abroad?** A: Lock or cancel the card immediately in your bank’s app or by calling the issuer’s international number, then review recent transactions and report anything unauthorized. Switch to your backup card on a different network. If cash or documents were stolen too, file a police report, which insurers often require, and contact the nearest U.S. embassy if your passport is gone. ## Sources - [FTC: Lost or stolen credit, ATM and debit cards](https://consumer.ftc.gov/articles/lost-or-stolen-credit-atm-and-debit-cards) - [CBP: Money and monetary instruments](https://www.cbp.gov/travel/international-visitors/money-monetary-instruments) - [Consumer Financial Protection Bureau](https://www.consumerfinance.gov/)