Aug 27, 2025
Most travellers carry a trusted personal credit card with them every day — especially when we travel abroad or overseas. Combined with travel protection, a credit card can benefit travellers by allowing them to monitor balances and earn travel reward points, and some credit cards offer additional perks such as no foreign exchange fees.
There are, however, some important safety tips and tricks to consider when using a credit card abroad. Here are five card hacks to get the most out of your credit card when travelling overseas (or over the border).
Can I use my credit card in another country?
Visa and Mastercard credit cards are widely accepted in most countries. Many countries are also seeing a growing acceptance of American Express cards. As many credit cards come with travel protection, it's good to charge significant expenses like flights and hotels to reap the benefits should something happen abroad, such as a delayed flight, lost luggage or medical emergency.
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The best option to confirm if your credit card can be used in another country is to do a little prep work before you leave. Before departing on your adventure, notify your credit card issuer of your upcoming travels and to which countries you’ll be visiting. Not only will you get confirmation that the card will work overseas but this notification will reduce the risk of your credit card company flagging your account for fraud or suspicious activities. Some banks allow you to notify them through their mobile app or website.
How to maximize the perks on your credit card when travelling to another country
To maximize the perks of a card, consider where you will spend the bulk of your money when planning and scheduling the trip and the card requirements you will need once you are travelling.
Many frequent travellers will use premium travel and reward credit cards. Not only do these types of cards offer multiple types of insurance coverage, but cardholders often get additional perks, such as lounge passes or free companion evouchers as long as you meet the card's terms and conditions. If you're looking for a new credit card you can find the best rates and rewards with our comprehensive credit card comparison tool.
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Can I tap my credit card while travelling abroad?
Not all credit card terminals allow tap or contactless, and some won’t accept chip and personal identification numbers (PIN). For instance, some countries require a six-digit pin, while others still require you to sign a slip. To reduce the chance of having your card rejected, be sure to confirm your pin before you depart. Also, call your credit card provider and ask if additional numbers need to be added to the pin when using the card overseas. In many cases, add two zeros before your regular PIN is enough to enable you to use the card.
If you are travelling in the U.S., you may be asked to input your ZIP code when making a credit card purhcase. The best practice is to enter the numeric three digits of your postal code plus two zeros, and the payment should go through. For example, for the postal code M1A 2B3, you will enter '12300' as your ZIP code.
Is there a fee for using a credit card in another country?
Many credit cards in charge a foreign exchange fee on every transaction, on top of the currency exchange rate back in your native currency.
According to the Financial Consumer Agency of Canada (FCAC), most Canadian credit cards charge a 2.5% foreign exchange fee on every purchase abroad. That means if you spent $3,000 abroad, you'd pay $75 in extra fees.
To avoid these hidden fees, consider using a no-foreign-transaction-fee card. If you travel often, using a no-foreign exchange fee credit card can save you hundreds in extra fees.
Benefits of using your credit card overseas
Using a credit card for purchases overseas does have benefits. Depending on your card, you'll get access to important travel benefits such as rental car insurance, baggage insurance, flight delay and cancellation insurance, as well as medical coverage.
The perks don't stop there as some cards give you access to premium concierge services, airport lounge access as well as hotel and airline benefits.
Another good reason to use a credit card over other payment options, such as debit cards, is the financial protection it offers. For example, while travelling, a person can skim your debit card PIN — a fancy way of saying steal. This can happen if you don't realize someone is right behind you when you enter your code or if you insert your card into a fraudulent terminal.
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When tapping or inserting your card abroad, always use ATMs inside banks or trusted locations to reduce skimming risks. Fraudulent terminals can capture your card details, and while you may be reimbursed, resolving disputes abroad can be stressful.
By using a credit card you can skip the need to use ATMs and skip the need to enter personal identification numbers (PINs) — assuming you can use tap to pay.
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What credit card is best for travel?
Ultimately, you will want to find a credit card that offers a benefit for using it overseas, like one that does not charge a foreign exchange fee. Other cards will offer cashback on foreign currency purchases that help to offset the foreign exchange fee.
Selecting a card that offers robust travel and medical insurance is also a good idea. About 45% of Canadian credit cards include travel medical insurance, but most only cover trips between 15 and 21 days depending on your age — and if you're over 65, travel medical insurance coverage may drop to only a few days (or none at all). If you're in this situation, don't rely soley on credit card coverage; consider buying supplemental travel insurance if your trip exceeds your card’s coverage window.
Be mindful of dynamic pricing
You also want to be mindful of dynamic currency rates set by networks like Visa, Mastercard and American Express. These are typically shown on a payment terminal at checkout, and users are asked to select which currency they want to charge the payment to – the local currency or the Canadian dollar. When offered the choice, always select the local currency at checkout. Choosing ‘Canadian dollars’ through dynamic currency conversion often adds an extra 3% to 7% markup on top of your credit card’s exchange rate.
What can I use instead of a credit card for travel?
If all else fails, make sure you have access to backup payment methods, including debit and cash. While credit cards are widely accepted in North America, there are countries where cash remains highly preferred or the only acceptable payment method.
It’s essential to research before travelling, notify your credit card company, be vigilant while spending and frequently review your credit card transactions on your bank’s mobile app.
Finally, the government has an extensive resource offering travellers important information before heading abroad. Find information at:
- Travel Advice and Advisories (Global Affairs Canada)
Before leaving Canada, check the federal government’s Travel Advice and Advisories and keep a list of emergency consular services. These resources can be lifesaving if you run into financial or safety issues overseas.
Sources
1. Government of Canada: Travel advice and advisories by destination
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Winston Sih is a freelance multi-platform journalist and television host specializing in technology, digital media, travel, and personal finance. Sih works with a variety of clients as a media consultant, is a journalism lecturer at The Creative School at Toronto Metropolitan University, and media professor at Seneca Polytechnic.
