A Complete Guide to Travelling Abroad with Your Credit Card

Travelling abroad becomes more convenient when you use a credit card for international travel. It simplifies payments and reduces the need to carry large amounts of foreign currency. With a travel credit card, you can shop, book flights and hotels, and withdraw cash easily worldwide. These cards often come with useful travel benefits and protections, making your trip smoother. 

When planning your trip, choosing the right travel credit cards can enhance your travel experience. Many banks in India offer cards packed with travel benefits like low foreign exchange fees, rewards on spends, lounge access, and travel insurance.

Here are some of the best travel credit cards popular among Indian travellers:

These cards may vary in benefits and eligibility, so choose based on your travel needs, frequency, and spending patterns. 

Disclaimer: The benefits of the respective credit cards mentioned above are added with reference to the information available at the time of writing. For the latest updates, please visit the official website.

Using your credit card abroad brings convenience but also calls for extra caution to stay secure.

• Notify Your Bank Before Travelling: Inform your bank or card issuer about your international trip. This prevents transaction declines or fraud alerts caused by unfamiliar foreign transactions.

• Keep the Card in Sight While Paying: Ensure you keep your card within view during swipe or chip transactions to avoid skimming or cloning.

• Use Chip or Contactless Payments: Where possible, use EMV chip or contactless tap payments. They are more secure than magnetic stripe swipes.

• Set Up Transaction Alerts: Enable instant SMS or email alerts for every transaction to detect unauthorised activity quickly.

• Avoid Using Public Wi-Fi for Online Transactions: When paying online, avoid unsecured Wi-Fi networks to prevent data theft.

• Have Emergency Contact Numbers: Save your bank’s helpline numbers to quickly report lost cards or suspicious transactions abroad.

Using credit cards for international travel offers several advantages that cash and forex travel cards cannot easily match.

• Convenience in Payments: Credit cards are widely accepted, enabling smooth payments for hotels, shopping, dining, and transportation worldwide without currency exchange hassles.

• Rewards and Cashback: Many cards offer reward points or cashback on international transactions, helping you save money or enjoy travel upgrades.

• Travel Insurance and Protection: Credit cards often include travel insurance covering delays, lost baggage, or emergency medical expenses, providing peace of mind.

• Fraud Protection: Banks offer zero liability for fraudulent transactions if reported timely, making cards safer than carrying cash.

• Global Acceptance: Visa, Mastercard, and Amex networks mean acceptance in millions of outlets in most countries. 

Before relying on your card abroad, be mindful of some critical factors:

• Foreign Transaction Fees (Forex Markup Fee): Many cards charge 2%–3.5% extra on international spends. This increases your bill, so opt for cards that offer waived or low forex fees.

• Currency Conversion Charges: Different card networks and banks have varying currency conversion rates, which can affect total spend.

• Accepted Payment Networks: Visa and Mastercard are widely accepted globally, but some countries or merchants may not accept American Express.

• Minimum Payment Requirements: Ensure you pay at least the minimum due to avoid penalties and interest.

• Credit Limit Awareness: Keep track of your credit limit to avoid declined transactions abroad.

• Dynamic Currency Conversion (DCC): Avoid paying in Indian Rupees abroad through DCC offered by some merchants; it often involves unfavourable exchange rates.

Proper management helps you avoid surprises and overspending:

• Set a Travel Budget: Estimate your expected spend and try not to exceed it.

• Monitor Transactions Daily: Use your bank’s app or online portal to keep an eye on spending.

• Keep a Backup Payment Mode: Carry a second card or forex cash for emergencies.

• Use Credit Cards for Big Payments: Make large purchases on your card for rewards and better record-keeping.

• Set Transaction Limits: Some apps allow you to control or temporarily block high-value transactions.

• Save Emergency Contacts: Keep bank customer service numbers handy in case you need assistance.

Losing your credit card overseas can be stressful. Here’s what to do:

• Immediately Report to Your Bank: Call your bank’s 24/7 helpline and block the card to prevent fraud.

• Use Emergency Card Replacement Services: Many banks provide emergency replacement or virtual cards you can use instantly.

• Inform Your Embassy or Consulate: In cases involving theft, registering a police report abroad may help with documentation.

• Monitor Your Account for Suspicious Transactions: Keep an eye on your statements and report any unauthorised charges promptly.

• Keep Multiple Payment Options: Having a backup card ensures you can continue transactions while the lost card is replaced.

Foreign transaction fees can significantly increase costs while travelling. Consider these tips:

• Choose Travel Credit Cards with Low or No Forex Markup Fees: Some cards, like RBL World Safari, charge zero forex fees.

• Use Credit Cards with Transparent Currency Conversion: Look for cards that use interbank exchange rates rather than fixed or hidden fees.

• Avoid Dynamic Currency Conversion: Always select payment in the local currency when offered, avoiding extra conversion charges.

• Pay Your Credit Card Bills in Full and On Time: Delaying payments may lead to interest on international transactions, adding costs.

• Consider Currency-Specific Cards or Forex Cards: For frequent travellers, multi-currency forex cards can minimise fees.

When you pay with a credit card abroad, the bank converts the foreign currency to Indian Rupees. 

How Currency Conversion Works

The card network (Visa/Mastercard/Amex) sets the exchange rate on the transaction date. Banks then may add a forex markup fee.

Tips to Minimise Conversion Fees

• Pay in Local Currency: Choose to pay in the foreign country’s currency rather than INR to get better conversion rates.

• Use Cards with Low Markup Fees: Select credit cards with forex markup fees below 2%.

• Track Exchange Rates Before and After Travel: Good rates at the time can reduce your overall spending. 

• Avoid Using Credit Card Cash Withdrawals: Cash advances attract higher fees and immediate interest charges. 

• Check Bank Statements Regularly: Watch for incorrect currency conversions or unfair fees.

• Use Contactless Payments: Fast and secure contactless transactions may apply better rates and reduce fraud risk.

Travel credit cards can make your international trip more comfortable and cost-effective. With the right card, you get rewards, lower fees, travel insurance, and global acceptance. Be mindful of safety, track your spending carefully, and prepare for emergencies. This approach to using a credit card for travelling abroad helps you enjoy smooth experiences and peace of mind during your overseas journey.