The Pros and Cons of Using a Credit Card During International Travel

Your plan to spend time abroad has surely been sitting on your 2026 wishlist. Whether it’s for vacation, work, or even health‑related purposes, everything is possible as long as it’s well‑planned. For this, many people rely on credit cards as their primary payment and transaction method for various needs.

A credit card is a tool that can be used as a valid payment method for many types of transactions. Considered practical and more convenient, its usage should still be accompanied by full awareness of what you should do — and what you should avoid.

Relating Reading: 7 Effective Ways to Overcome Motion Sickness When Solo Backpacking

But Why Do Many People Use Credit Cards When Traveling Abroad?

Using a credit card for various transactions while abroad certainly comes with clear reasons. From enhanced security, practical and flexible usage, additional financial benefits, easy access to emergency services, to better spending control—these factors all contribute to why this payment method is so popular among travelers.

However, these benefits and conveniences do not come without consequences. There are several things you need to pay close attention to when using a credit card during international travel to ensure that the advantages can truly be enjoyed optimally.

Be Aware of the Risks

Despite all the convenience and comfort offered, the main risk of using a credit card during international travel lies in the hidden fees that often go unnoticed.
These fees can accumulate and turn into a significant bill when the payment deadline arrives. Beyond that, there are several other risks you should pay attention to so you can continue using your credit card responsibly and comfortably:

• Financial risks, these include hidden transaction fees, currency exchange rates, high interest charges, and accumulating debt caused by uncontrolled spending.
• Security risks, these involve potential data breaches, physical theft of your credit card, and unauthorized transactions that may occur if your card information is leaked.
• Technical and operational risks, these include transaction declines, physical damage to the card, and signature or PIN verification issues that may occur when using your credit card abroad.

Understanding these risks is crucial so you don’t use this payment method carelessly. The benefits it offers are absolutely real—as long as you fully understand the terms and conditions, as well as what should and should not be done when making payments with your credit card.

9 Tips for Using Your Credit Card During International Travel

To maximize your experience abroad, travelers who rely on credit cards as their primary payment method should understand the proper tips for using them.
Although these tips may seem simple and easy to follow, these basic steps can significantly enhance your travel comfort — without leaving you with large expenses at the end of your trip itinerary.

1. Transaction Fees — Understand and Calculate Them

Foreign currency transaction fees typically range from 1% to 3% for each use. These fees are determined by the credit card issuer or the bank. In addition, the exchange rate applied is often higher than the standard market rate.
So make sure you understand the transaction fees and the exchange rates that will apply when you travel abroad.

2. Consult With Your Bank

When planning an international trip, it’s wise to consult your credit card–issuing bank. Ensure you understand everything related to exchange rates and transaction fees so you don’t end up facing unexpected costs.
Banks often offer promotions or programs you can take advantage of—such as 0% transaction fees—to maximize your benefits.

3. Keep Your Credit Card’s Unique Number

The third tip is to always store your credit card’s unique number. This number should be memorized or saved securely so that if your card is lost, you can quickly request a replacement from the issuing bank.
Also make sure you keep the customer service contact number of your credit card provider.

Relating Reading: Tips for Successfully Applying for a Car Loan and Everything You Need to Know

4. A Clear Credit Limit

Check and ensure the credit limit on your card. Many problems occur when travelers arrive at their destination, only to find that their transactions are declined because the credit limit has been reached.
You can consult your bank directly to understand the available spending limit and avoid such issues.

5. Card Expiration Date

The expiration date of a credit card may seem trivial, but if the card expires, it simply cannot be used. So, make sure your card’s validity extends at least until your international travel agenda is fully completed.

6. Pay Attention When Your Card Is Used on an EDC Machine

Be alert when your credit card is swiped or inserted into an EDC machine. If the cashier performs the swipe twice without giving any explanation, ask them immediately — this could indicate potential fraud.
Stay vigilant and carefully observe every step of the payment process.

7. Use It Only in Safe Areas

If you need cash during your trip, your credit card can also be used for ATM withdrawals. However, ensure that you conduct withdrawals only in safe locations to reduce the risk of crime.
Always choose public places with high activity and good visibility.

8. Always Keep Your Transaction Receipts

Receipts are essential proof if any issue arises. When your monthly statement arrives after your trip, these receipts can be used to cross-check all transactions.
Receipts also serve as legal proof that a credit card transaction took place, which can be important if disputes or issues occur later.

9. Keep Your PIN Confidential

This is the most fundamental rule — always ensure your PIN remains confidential. Never share it with anyone, and make sure you remember it yourself to avoid problems when making payments.

International Travel with the Right Insurance

One important aspect that is often overlooked when planning an international trip is having the right International Travel Insurance. But why is this related to the topic of credit cards?

Essentially, reliable insurance will protect you from various losses that may occur during your trip. These benefits can come in many forms, including personal accident coverage, reimbursement of medical expenses, emergency medical evacuation, repatriation, compensation for lost or damaged baggage, evacuation cost coverage, visa protection, and even coverage for flight overcapacity situations.

In relation to credit card usage, a dependable international travel insurance policy can also support various aspects linked to your credit card benefits. Some policies provide credit card protection for losses due to theft, or even violent theft.

Relating Reading: Here's How to Get a Refund for a Flight Delay of More Than 4 Hours

This is why it’s important to ensure you have the right International Travel Insurance, such as AXA SmartTravel International. You can read more about the benefits in the RIPLAY provided in the related link, but in general, this insurance also offers protection for the credit card you use during your travels.

Plan your international trips with AXA Insurance Indonesia, and make sure every journey you take is always protected with reliable and trusted insurance!

Reference:

• https://blog.clover.com/pros-and-cons-of-using-a-credit-card-when-traveling-abroad/#:~:text=Sisi%20buruk%20kartu%20kredit%20saat,tetap%20merupakan%20ide%20yang%20bagus.
• https://skorku.id/tips-transaksi-kartu-kredit-di-luar-negeri-agar-lebih-aman/
• https://www.cermati.com/artikel/cara-memakai-kartu-kredit-di-luar-negeri-dan-biayanya
• https://sindikasi.republika.co.id/berita/sindikasi/tips-sindikasi/rwbpqp2416000/9-tips-cerdas-gunakan-kartu-kredit-selama-travelling-di-luar-negeri?
• https://www.earnin.com/blog/swiping-abroad-8-tips-for-using-a-credit-card-abroad
• https://www.bizhare.id/media/keuangan/keuntungan-kartu-kredit-luar-negeri
• https://www.alinear.sr-digital.biz/id/read/5-cara-aman-pakai-kartu-kredit-di-luar-negeri
• https://blog.transfez.com/cara-menggunakan-kartu-kredit-di-luar-negeri/