Using Credit Card to Spend Abroad

Using Credit Card to Spend Abroad

You can use your credit card to spend abroad when shopping, dining out and more. Of course, this is considering the place accepts your card. You can even use your credit card to take out cash from cash machines or ATMs abroad. However, you need to watch out the expensive fees for foreign usage.

Can I Use Credit Card Overseas?

Whatever your purpose for travel may it be for business or holiday, a credit card can be a convenient means to spend abroad. These are widely accepted anywhere so they can save you from the hassle of carrying cash.

However, it can also be one of the expensive means to spend abroad. You also have to watch out for fees that include:

Non-sterling transaction fees

Usually, this is a fixed portion of the amount you spend overseas.

Cash withdrawal fees

This is one of the most costly transactions that you can do with your credit card. In addition to foreign transaction charges, you’ll also have to pay a cash advance fee and interest on the amount you withdraw.

Interest on any cash you withdraw

The percentage of interest on cash withdrawals is normally much higher than the rate charged on your purchases. Besides, there’s no grace period so you’ll start accumulating interest from the moment you take the money out.

For further details on how much credit card can cost you, check our guide.

On the contrary, if you can find a credit card that does not charge for transaction fees in foreign usage, you’ll be able to save cost each time you use this card.

What To Do When Using Credit Card Abroad?

Before Your Trip

You can inform your provider if you’re going to use your credit card overseas by either calling them, logging into your online banking or app or by visiting the closest branch.

You might be at risk of not being to use your card while overseas when your provider blocks your card due to foreign transactions that might be flagged as suspected fraud. This is the reason why you have to get in touch with your provider and inform them about your spending the card overseas.

We also suggest that you take a back up cash, a debit card or a prepaid card just to have an alternative in case something unfortunate occurs.

When You’re Overseas

When you’re overseas, make sure to shield your PIN when using a cash machine. You shouldn’t be giving your PIN t anyone, regardless if they introduce themselves as police or a representative of your bank.

Also, when you take a trip between cities and spots, you should not take all your card at once. Be sure you have some back up left in your hotel room to ensure you have access to funds if anything happens.

Moreover, if you use your card to pay abroad, tell the retailer to charge you in the local currency.

Choosing The Best Card

When choosing for the right card, make sure that you pick the one that suits your needs. If you prefer using a credit card overseas, you might need to consider checking for the following factors:

tickCards that do not charge you for transaction fees

tickCards with no fees for cash withdrawals

tickA lower interest rate in terms of cash advance or cash withdrawals

Furthermore, getting a new credit card with no foreign usage fees can help you make the most of your holiday money.

Compare travel credit card to check on the charges for using it overseas.

Also, you have to apply 2 weeks before your trip to ensure that you have adequate time to get the card via post.

Here are some of the options on how you can spend abroad.


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