How to Use Credit Cards Abroad

By Bryce Casson, Founder · Cardocrat · Updated June 2026
The short answer: To use a credit card abroad cheaply, carry one with no foreign transaction fee and always choose to pay in the local currency, never dollars, to dodge dynamic currency conversion markups. Bring a backup card on a different network and notify your issuer or set a travel plan to avoid declines.

Always pay in local currency

Overseas, a terminal may offer to charge you in U.S. dollars. This is dynamic currency conversion, and it bakes in a poor exchange rate plus a markup, so it almost always costs more. Always choose the local currency and let your card network do the conversion at its near-wholesale rate.

Carry a no-FTF card

Many cards add a foreign transaction fee of about 3 percent on every purchase abroad. Bring a card that waives it; see the best no-FTF cards. Carrying a second card on a different network (a Visa and a Mastercard) is smart, since acceptance varies by country.

Avoid declines and surprises

Set a travel notice or confirm your issuer does not need one, so a foreign charge is not flagged as fraud. Most of the world uses chip-and-PIN and contactless, so know your card PIN. Use cards over cash where possible for the better exchange rate and purchase protections, and avoid ATM and merchant surcharges where you can.

Frequently asked questions

Should I pay in local currency or U.S. dollars when abroad?
Always choose the local currency. Paying in dollars triggers dynamic currency conversion, which adds a poor exchange rate and a markup. Local currency lets your card network convert at a much better rate.
What credit card should I use overseas?
One with no foreign transaction fee, ideally with chip-and-PIN and contactless support. Bring a backup on a different network, since card acceptance varies by country.

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Bryce Casson

Bryce Casson, Founder of Cardocrat. Every card is ranked by what it actually returns, with all points valued at a flat 1 cent and offers verified against issuer sources. About the author.