balanceCard Decisions
How do I compare credit cards for international travel?
Updated
7 min readFactor one: foreign transaction fees
A foreign transaction fee is a surcharge, commonly around 3 percent, added to every purchase made outside the United States. On a two week trip where you spend 3,000 dollars, that is about 90 dollars of pure waste.
Most travel cards have dropped this fee. The Chase Sapphire Preferred, Sapphire Reserve, United Explorer, and the premium American Express travel cards all charge no foreign transaction fee. The cards that still charge it are usually cash back cards, so check any non travel card in your wallet before you leave.
Factor two: will the card actually be accepted?
Visa and Mastercard are accepted nearly everywhere cards work. American Express acceptance is thinner outside big cities and tourist areas in much of Europe, Asia, and South America, because Amex charges merchants more.
This does not make Amex a bad travel card, its protections and lounge access are strong, but it means an Amex should never be your only card abroad. Pair it with a Visa or Mastercard that has no foreign transaction fee.
Factor three: travel protections
Protections are where similar looking cards separate. The Sapphire Reserve, for example, includes trip cancellation and interruption coverage up to 10,000 dollars per person and 20,000 dollars per trip, trip delay reimbursement up to 500 dollars per traveler, primary rental car coverage up to 75,000 dollars, and lost luggage reimbursement up to 3,000 dollars per traveler. The lower fee Sapphire Preferred carries a similar core set.
The catch on every card: you generally must pay for the trip with that card for its protections to apply. Decide before you book which card's coverage you want, then put the airfare on it.
What to check in each card's protection fine print
| Protection | Question to ask | Why it matters abroad |
|---|---|---|
| Trip delay | How many hours before coverage starts, and what is the cap? | Pays for hotels and meals during long international delays |
| Trip cancellation | What reasons are covered, and up to what amount? | International tickets are expensive and often nonrefundable |
| Baggage | Lost and delayed bag limits per traveler? | Replacing essentials overseas is costly |
| Rental car | Primary or secondary, and is your destination country excluded? | Some countries are excluded from card rental coverage |
| Emergency assistance | Is there a 24 hour line, and what does it actually pay for? | Coordination help matters far from home |
The backup payment strategy
Carry at least two cards on two different networks, stored in different places. A practical setup: a Visa with no foreign transaction fee as the primary, an Amex or second Visa or Mastercard as backup, plus a small amount of local cash for markets, taxis, and places where cards fail.
Also carry a debit card for cash withdrawals, tell your banks your travel dates if they ask for travel notices, and save each issuer's international collect call number somewhere outside your wallet.
A simple decision path
- check_circleZero foreign transaction fee is non negotiable for the card you will swipe abroad.
- check_circleMake the primary card a Visa or Mastercard for acceptance.
- check_circlePut the airfare on whichever of your cards has the best trip delay and cancellation coverage.
- check_circleBring a backup card on a different network and some local cash.
- check_circleSkip cards that charge foreign transaction fees entirely for the trip, even if they earn more at home.
Common questions
Which is the biggest cost mistake travelers make with cards abroad?expand_more
Using a card with a roughly 3 percent foreign transaction fee for the whole trip, and accepting dollar conversion at terminals. Together those can quietly add 5 percent or more to everything you buy.
Is American Express useless in Europe?expand_more
No. It works at hotels, airlines, larger retailers, and most tourist facing businesses. But small restaurants and shops decline it often enough that you need a Visa or Mastercard with you as well.
Do airline cards work well internationally?expand_more
The major United States airline cards, like the United Explorer, charge no foreign transaction fees, so they are fine to spend on abroad. Their bag and boarding perks, though, generally apply on their own airline's flights, not foreign carriers.
Does my card's rental car coverage work in every country?expand_more
No. Card rental coverage commonly excludes certain countries. Read the card's benefits guide for the exclusion list before declining the rental company's coverage at the counter.
Should I get a new card just for one international trip?expand_more
Only if it fits your life afterward. A no foreign transaction fee card with solid protections, like a Sapphire Preferred at 95 dollars a year, is easy to justify. Do not take on a large annual fee for a single trip.
Keep reading
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