Traveling abroad can be thrilling, rivetting… and expensive. Whether it’s airfare and lodging or all the spending you do on the ground, costs can add up quickly. With the right credit card, you can actually benefit from these purchases. You can meet spending requirements and maximize rewards by charging everything to your card. Credit cards are convenient and can offer added protection that can come in handy if you fall victim to a tourist scam.
Despite the many positives, you may have some reservations about using your credit card internationally. After all, credit cards aren’t accepted in every city in the world and some merchants will add fees for card transactions or offer discounts when you pay cash. The incentives for not using credit cards can be pretty compelling.
But you shouldn’t let these concerns get in the way of maximizing rewards on your next international trip. Here are some obstacles that might get in the way of maximizing rewards on your next trip abroad, and how to navigate them:
Foreign transaction fees
Credit card companies charge foreign transaction fees on purchases processed outside of the U.S.—usually around 3 percent. That may not sound like much, but an extra $30 in fees for every $1,000 spent can put a dent in your travel budget. Foreign transaction fees can actually negate the value of any rewards you earn on travel expenses, especially if you use your card on big-ticket expenses like hotels and rental cars.
But this is easily solved by…
