Traveling abroad? Make sure your credit card has these 6 features

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Traveling to a new country offers an adventure that few experiences can match. As you search for flights, book your hotel, and plan your itinerary, you’ll also want to consider your credit card.

Your credit card provides more than a safe and convenient way to make purchases on your trip. Having the right card in your wallet can enhance your travel experience and offer protection if the unexpected happens.

If you’re heading out of the country soon, here are six must-have features your credit card should offer.

1. Wide acceptance

When you're in a foreign country, you want to be able to make purchases, withdraw cash, and pay for various services without any hassle. Using a card that's widely accepted eliminates the need to carry large amounts of cash or worry about currency exchange.

Carrying large sums of cash while traveling can be risky, as it makes you a potential target for theft. By using a card, you reduce the risk of losing your money.

Many card providers offer security measures such as fraud protection and the ability to freeze your card in case it gets lost or stolen. This can give you peace of mind while exploring new places.

To ensure smooth transactions, consider carrying a Visa or Mastercard when traveling abroad. Almost all merchants accept one of these major payment networks.

Visa and Mastercard also offer the convenience of using ATMs to withdraw cash when needed. American Express and Discover also provide ATM withdrawal options but aren't as universally accepted.

2. No foreign transaction fees

“The number one feature to look for from international travel credit cards is no foreign exchange fees,” says John Taylor Garner, CEO of Odynn, an independent awards optimization platform.

When you use your card in a foreign country, you may have to pay an additional fee, called a foreign transaction fee. This fee is a percentage of the transaction amount, usually 3%-5%.

Foreign transaction fees can add up and eat into your travel budget without realizing it. That's why having a card with no foreign transaction fees is a game-changer.

3. Travel rewards

Using a travel rewards card on your overseas adventures is, well, rewarding.

Typically, with every purchase you make, you can earn points, miles, or other rewards. These rewards can be redeemed for discounted or even free travel-related expenses. Rewards include airline miles, hotel points, car rental discounts, or access to airport lounges.

Not only do these rewards make your trip more affordable, but they can also enhance your overall experience. Imagine being able to upgrade your flight to business class or enjoy a luxurious hotel stay without paying a fortune. With a travel credit card, you may qualify for discounted or even free flights, hotel stays, or experiences.

It’s a good idea to review your card’s travel rewards policies before you book. Depending on your card, you may be able to save money by making travel arrangements through your card’s travel portal.

“A credit card that gives cardmembers the ability to book travel directly through a card provider’s travel site can be a huge convenience when planning a trip abroad,” says Anthony Merola, managing director and head of proprietary products at Citi. “Plus, they could be earning points to use toward their future hotel, airfare, and car rental bookings.”

4. Travel insurance and protection

When you're far away from home, unexpected situations can arise. This can include medical emergencies, lost baggage, or even flight cancellations. Having a card that offers travel insurance can help ensure you're protected against these unforeseen circumstances.

With travel insurance, you can recover non-refundable expenses such as flights or accommodation costs, giving you financial protection in case your plans change unexpectedly. You could also be reimbursed if your baggage is lost or delayed. Lastly, if your flight gets delayed or you miss a connecting flight due to circumstances beyond your control, travel insurance can provide compensation for expenses like meals or accommodations.

Before embarking on your next international trip, it’s a good idea to check your card’s benefits guide to review what coverage your card provides.

5. Additional perks and benefits

Besides the convenience, rewards, and protections travel credit cards offer, many provide extra perks that can improve your travel experience, including:

• Airport lounge access: Many travel credit cards provide complimentary or discounted access to airport lounges worldwide. These lounges offer a space to relax, enjoy complimentary food and beverages, and access Wi-Fi.
• Global Entry or TSA PreCheck credit: Some credit cards offer reimbursement for the application fee for programs like Global Entry or TSA PreCheck. These programs allow expedited security screenings and customs clearance, saving you time and hassle at airports.
• Concierge services: These services can make travel arrangements, dining reservations, or event ticket bookings on your behalf.
• Car rental discounts: Certain cards provide exclusive discounts or upgrades when renting a car from specific car rental companies. This can save you money or allow you to enjoy a more luxurious vehicle during your travels.

Perks such as these improve your travel experience and add to your card’s value. While rewards and convenience are primary advantages of credit cards, these extra perks can offset or even outweigh a card’s annual fees.

6. A generous sign-up bonus

If you plan on signing up for a new credit card before your next trip abroad, you may benefit from a card that offers a solid sign-up bonus. Some travel cards offer sign-up rewards big enough to cover a portion or even the entire cost of an airline ticket or hotel stay.

When you apply for a new credit card and meet the spending requirement within a specified timeframe, you can earn a significant amount of bonus points, miles, or cash back.

You can typically reach the spending limit by using your card for everyday expenses or larger purchases you were planning to make anyway. Just make sure you're not overspending to meet the requirement.

Before signing up for a credit card, weigh the welcome bonus against the annual fee to make sure it’s a smart move. For example, getting a $400 introductory bonus card may be worth it if the yearly fee is only $95.

International travel cards to consider

There are plenty of international travel credit cards to choose from, based on your traveling habits and the type of rewards you want to earn. Here are a few choices to consider:

• Chase Sapphire Reserve®: This credit card offers 10X points on hotel stays, car rentals, and Chase Dining purchases, and 5X points on air travel made through Chase Travel℠. You can also earn 3X points on restaurant and general travel purchases, and 1X points on all other purchases. The card offers a generous sign-up bonus, no foreign transaction fees, and valuable travel protections.
• The Platinum Card® from American Express: Earn 5X points on airfare and prepaid hotels (up to $500,000) and 2X points on prepaid car rentals booked through American Express Travel. Earn 1X points on all other purchases. Known for its luxury travel benefits, the Platinum card also provides access to airport lounges, hotel elite status, and concierge services.
• Capital One Venture X Rewards: This card is praised for its simple and flexible rewards program. You earn 10X miles on hotel and rental cars and 5X miles on flights booked through Capital One Travel. Earn 2X miles on all other purchases. This card has no foreign transaction fees and often offers a competitive sign-up bonus.

The bottom line

Traveling internationally is a rewarding experience, and traveling with the right credit card can make it better. Make the most of your trip by evaluating your card’s features alongside other top travel cards to ensure you’re traveling with the best card companion.

Look for credit cards with features such as wide acceptance, zero foreign transaction fees, rewarding bonuses, and travel insurance. The best international travel credit cards do more than pay for purchases, they also protect against unexpected events and improve your overall travel experience.

Editorial disclaimer: Opinions expressed are author's alone, not those of any bank, credit card issuer, or other entity. This content has not been reviewed, approved, or otherwise endorsed by any of the entities included in the post.