All You Need to Know about Using Credit Card Internationally

Credit cards have become a near-indispensable tool in our daily lives. They not only help us manage our finances effectively but also make it possible to fulfil our desires—perhaps that dream vacation you always wanted. But as you begin planning, it’s natural to ask yourself, ‘Can I use my credit card for international payments?’ The good news is that many credit card companies in India allow you to make international payments. However, it’s important to understand how your credit card company manages these payments and know the best credit card for international transactions.

Here’s everything you need to know about using credit cards for international payments:

How Does a Credit Card Work Internationally?

Credit cards simplify international transactions through a network of payment processors. When you use your credit card abroad to shop or withdraw money, the credit card company converts the currency to your home currency based on the exchange rates.

6 Tips for Using Credit Cards Internationally

Keep the following tips in mind to ensure a safe and rewarding experience when using your credit card internationally:

1. Do Your Research

Some credit cards are more widely accepted around the world than others. The last thing you want is to arrive in a new country that doesn’t accept your credit card. Thus, it is recommended that you check your credit card acceptance in the country you are planning to visit. You can also read reviews about travellers’ experiences using the same credit card online.

2. Notify Your Issuer

Inform your credit card company in advance about your travel plans. Issuers can sometimes freeze your account or deny transactions if they suspect fraudulent activity. To prevent this, you can set notifications online or call your credit card provider using the number on the back of the card.

3. Monitor Your Account

Review your account activity regularly to stay informed about your spending and promptly identify any unauthorised charges. If you notice any unusual transactions, contact your card issuer immediately to dispute the charges and initiate an investigation.

4. Compare Forex Fees

Credit card companies often charge an additional fee for international transactions, known as the forex markup fee. These fees typically range from 1 to 3%. To avoid unnecessary expenses, check and compare the rates beforehand.

5. Leverage Reward Points

If you’re wondering, ‘Can I use my credit card internationally and still enjoy the rewards?’ the answer is yes, for the most part. Several credit cards offer cashback, points, or travel perks even on international purchases. The benefits can range from travel insurance to airport lounges and flight upgrades. Therefore, familiarise yourself with your card’s benefits before jet-setting on your international journey.

6. Reduce Cash Advance Charges

While credit cards allow you to withdraw funds from an international ATM, additional charges may be involved. The charge can be levied as a percentage of the amount withdrawn or as a flat fee. Use a credit card directly for most expenses, such as dining, shopping, or booking hotels. However, always carry some cash in case you encounter vendors that don’t accept a credit card.

Also Read: Trending International Destinations With Easy Visa for Indian Travellers

What Makes One Credit Card the Best Credit Card For International Transactions?

Here are the top benefits offered by One Credit Card:

1. It offers one of the lowest forex markup rates at just 1%, compared to the standard market rate of 3.5% that most credit cards charge. This means you can save a lot if you make a large transaction.
2. It provides security features such as transaction alerts, card controls within the app, and advanced fraud protection measures.
3. You have the option to convert purchases over ₹2500 into EMIs. This allows you to spread the cost into manageable monthly instalments.
4. You can earn 5X rewards on your top 2 spending categories each month.
5. It has partnered with leading travel aggregators such as Yatra and MakeMyTrip, which helps you save big on travel-related bookings.

Also Read: When To Use Credit Card EMI and When to Avoid

Ultimately, to answer the question, ‘Can I use my credit card internationally?’ – Yes, you can. Not only that, you can avail of all the benefits of your credit cards on international transactions. So whether you’re indulging in authentic Italian pasta in Rome or savouring Tapas food in Barcelona, you can keep racking up points on your international adventures.

However, it’s important to be aware of factors that affect international transactions, like forex markup and currency conversion rates. One Credit Card stands out with its unparalleled benefits, making it one of the best credit cards for international transactions. Take advantage of One Credit Card’s features and transform your international transactions into rewarding experiences.

Also Read: Top 5 Ways To Save Money on Hotels While Travelling