Is it better to use a credit card or a debit card when traveling abroad?

If you are heading abroad for your trip, you will want to avoid foreign transaction fees. Although both credit and debit cards are subject to this 2-4% upcharge, getting a credit card without a foreign transaction fee is a bit easier than finding a debit card with no foreign fees.



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While you'll always need some cash, using a credit card for your spending needs can significantly simplify overseas travel. You won't really have to deal with converting currency and, armed with the right credit card, you won't pay unnecessary foreign transaction fees.

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Key Takeaways. European travelers should always have some cash on hand; getting it from an ATM abroad is usually the easiest, most advantageous way. If you need cash from an ATM, it's usually better to use a debit card, because credit cards often charge a high interest rate for a cash advance.

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Debit cards often apply their exchange rate when converting foreign currency transactions into your home currency. These exchange rates may not be as favorable as market rates. Therefore, each transaction may incur additional costs.

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Using credit cards for purchases and using ATMs to get local currency are the best options when abroad. Avoiding cash as much as possible won't saddle you with extra unspent currency when you leave a country.

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Paying with a credit card makes it easier to avoid losses from fraud. When your debit card is used by a thief, the money is missing from your account instantly. Legitimate expenses for which you've scheduled online payments or mailed checks may bounce, triggering insufficient funds fees and affecting your credit.

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Credit cards often offer better fraud protection With a credit card, you're typically responsible for up to $50 of unauthorized transactions or $0 if you report the loss before the credit card is used. You could be liable for much more for unauthorized transactions on your debit card.

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Exchange cash before leaving the United States You can avoid all transaction fees by paying for your purchases in cash while you're abroad. Banks and currency exchange stores will exchange U.S. dollars for most major currencies, and you can do this before you leave.

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Buy currency before you travel. Doing so gives you time to shop around for the best rate. Plus, when you arrive, you won't have to immediately find a bank or currency exchange. Do some research ahead of time to see if US dollars are widely accepted at places you plan to go to.

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Q: Can I use my credit or debit card internationally? Yes, anywhere Visa is accepted. Visa fees will apply, and it will show on your statement as an international 1% transaction service fee.

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