No Foreign Transaction Fee Credit Cards

What are chip-and-pin credit cards? Chip-and-pin credit cards are the standard in Europe, Canada and Japan. The main difference between them and the magnetic stripe cards we use in the U.S. is the fact that chip-and-pin cards provide better fraud protection by adhering to global EMV standards. This heightened protection is due to the fact that a consumer has to input a Personal Identification Number (PIN) that must match data stored on a secure microchip embedded within the card for a transaction to be authorized. Some U.S. credit card companies are beginning to offer chip-and-pin cards as well as chip-and-signature cards and chip-based contactless payment methods. Therefore, global credit card interoperability appears only a matter of time. In the meantime, regular credit cards with no foreign transaction fees will be sufficient for all purchases made abroad, with the exception of those made at unattended automated kiosks, such as those in train stations. Chip-and-pin credit cards are required for such transactions, as not even chip-and-signature cards will work given their lack of a PIN for identity verification.

Tips for using your credit card abroad: There are a number of things you must do before using a credit card abroad, including:

1. Get a no foreign transaction fee credit card before booking flights, hotels, etc. associated with an international trip. Do so as soon as possible because foreign transaction fees will be assessed for any purchase processed through a foreign merchant, even those you make before departing.
2. Call your credit card company in order to notify them of your international travel plans and ask for a toll-free number to call in case you encounter problems. If you don’t tell your card issuer that you’re going to a particular country, your card will not work there.
3. Keep your account number and credit card company’s phone number somewhere safe, because if your card gets lost or stolen, you’ll need both in order to get a new card sent to you.
4. Some countries may require identification in order to authorize a U.S. credit card transaction so don’t forget your passport when you go shopping.
5. At the checkout counter, decline any merchant’s offer to convert prices into U.S. Dollars, so you don’t fall victim to dynamic currency conversion.

What about cash? Whenever you travel abroad, it’s a good idea to have cash. While the level of importance obviously depends on how developed the country you’re visiting is (the more developed, the more merchants that accept international credit cards), it’s inevitable that you will find yourself needing to make at least a few cash-only purchases (e.g. cab fare). So what’s the best way to go about getting it? Well, for starters, do not even consider using a credit card for a cash advance, as this will be very expensive, in light of the cash advance fee and APR. Your best options are a debit card or an ATM card. As these cards also come with foreign transaction fees, it pays to shop around before opening one.