Using a credit card abroad: how to avoid fees

Costs that can arise abroad

Abroad, the same card can cost considerably more than at home. That is not down to a single big fee, but to several small items charged by different parties. If you know who charges what, you can avoid almost all of them.

Eurozone or foreign currency: the currency counts, not the country

If you pay in euros, there is no foreign currency fee – not even in another EU country. The EU regulation on cross-border payments stipulates that a euro payment within the EU must not cost more than a domestic one. In Croatia (since 2023) and Bulgaria (since January 2026), you also pay in euros.

It is different wherever a country has its own currency – even in the middle of Europe. In Switzerland, the UK, Norway, Sweden, Denmark, Poland, the Czech Republic, Hungary or Romania, payments are settled in the local currency, so your card's foreign currency fee applies. The same goes for long-haul trips and for online purchases billed in dollars, pounds or another currency.

In our comparison, the foreign currency fee ranges from 0% to just under 3%. Many cards waive it completely; others have a limit, such as a monthly amount up to which payments in a foreign currency are free.

The DCC trap: always pay in the local currency

DCC stands for Dynamic Currency Conversion. Terminals and ATMs abroad often offer to convert the amount into euros straight away – with prompts such as “Pay in EUR”, “Conversion guaranteed” or a preselected euro amount. That seems convenient but is almost always more expensive: the merchant or ATM operator does the conversion itself and adds its own markup to the rate. This markup is often several percent – more than the foreign currency fee of most cards.

So always decline the conversion and choose the local currency – at the terminal, for example, with “Pay in local currency”, at the ATM with “Without conversion” or “Decline conversion”. The card network then converts at its own rate, and only your card's foreign currency fee applies. If your card has a 0% foreign currency fee, you pay no markup at all.

In EU countries with their own currency – such as Poland or the Czech Republic – terminals and ATMs have had to show the conversion costs as a markup on the European Central Bank's reference rate before you pay since 2020. Read this notice: if it shows a markup of several percent, that is the DCC trap. Outside the EU there is no such obligation – there, the only protection is to decline the conversion every time.

Cash abroad: what to watch out for at the ATM

When you withdraw cash, three costs can add up: your bank's cash withdrawal fee, the foreign currency fee and the ATM operator's fee. The ATM shows the operator's fee before paying out; many cards do not refund it, even if they promise “free withdrawals worldwide”. In some travel destinations, almost all ATM operators charge such a fee – then it pays to withdraw less often but in larger amounts.

With credit cards that have an instalment option, also watch out for interest: with some cards, debit interest runs on cash withdrawals from day one, even if the withdrawal itself is free. For a regular cash supply while travelling, a debit card with no foreign currency fee or a charge card that is settled in full every month is the better choice.

According to our data, the following cards charge no foreign currency fee and offer free cash withdrawals worldwide – some only up to a monthly free allowance. You will find the exact terms on each card's page.

Worked example: what a week in the USA costs with each card

A simple example shows how quickly fees add up: a week's holiday in the USA with €1,500 of card payments in US dollars – hotel, restaurants, shopping and fuel – and two cash withdrawals of €200 each. The table works through this scenario for every personal card in our comparison using the current terms: foreign currency fee, cash withdrawal fee including minimum amounts and fixed charges, and free allowances.

The differences come almost entirely from two figures. A foreign currency fee of 2% costs €30 on €1,500 of spending. A cash withdrawal fee of 4% with a further 2% foreign currency fee on top costs another €12 per €200 withdrawal. The annual fee is shown alongside for comparison but is not included in the total, because you pay it regardless of the trip.

If you travel outside the eurozone regularly, a card with no foreign currency fee usually pays for itself on the very first trip – especially as many of these cards have no annual fee and work well as a second card alongside your current account.

With 24 of 51 cards, this trip costs nothing in fees. The others cost between €2.00 and €68.81.

Credit card, debit card or Girocard: what works when travelling

The Girocard (the German debit card system, formerly known as EC card) can only be used to a limited extent outside Germany; many banks now issue it as a co-badged card with a Visa or Mastercard function. For travel, you therefore need a Visa, Mastercard or American Express card. Visa and Mastercard are the most widely accepted worldwide; American Express is common in hotels and with airlines, but not accepted everywhere by smaller merchants.

For deposits, the card type is crucial. Car rental companies and many hotels block a security amount when you pick up the car or check in, and often require a genuine credit card with a credit line for this. Debit and prepaid cards are often not accepted for deposits, or only for an extra charge. If you plan to rent a car, take at least one credit card issued in the driver's name.

Ideally, carry two cards on different card networks: for example a Visa credit card with no foreign currency fee and a Mastercard debit card as a backup. If one card fails or is blocked, you can keep paying with the other.

Checklist before you travel

Take care of these points a few days before you leave:

• Check whether your card charges a foreign currency fee – and, if necessary, apply for a travel card in good time
• Check your spending limit and daily limit for payments and withdrawals, and adjust them for the trip
• Test the approval app for online payments (3-D Secure); it also works abroad but needs an internet connection
• Pack a second card on a different card network and keep it separate from the first
• Note down the card-blocking hotline (Sperr-Notruf) 116 116 (from abroad +49 116 116) and your bank's emergency number
• For a rental car or hotel, check whether a genuine credit card is required for the deposit
• Set up mobile payment (Apple Pay, Google Pay) if your card supports it

Card lost or stolen: what to do

Have the card blocked immediately – via your bank's app, your card provider's emergency number or the central card-blocking hotline 116 116. Many apps let you block the card temporarily in case you have only misplaced it. If it was stolen, also report the theft to the local police and keep the confirmation.

Your liability is limited by law: for losses before you report the card, you are liable for no more than €50, unless you acted with gross negligence – for example by writing the PIN on the card. After you have reported it, you are no longer liable at all. Many providers will send a replacement card abroad or provide emergency cash on request; whether they do, and at what price, is stated in the price and service schedule (Preis- und Leistungsverzeichnis).

Frequently asked questions about using a credit card abroad

Which credit card is free to use abroad?

A card with no foreign currency fee and no fees for cash withdrawals worldwide. Such cards are also available without an annual fee; the table above shows a selection, and our comparison of travel credit cards gives you the full overview. Fees charged by local ATM operators are not covered by this.

How much in fees does a credit card cost on a holiday in the USA?

It depends almost entirely on the foreign currency fee and the cash withdrawal fee. With a card that charges neither, you pay your bank no fees on the trip. With a 2% foreign currency fee, on the other hand, €1,500 of card payments costs €30, and each withdrawal can cost several euros on top. The worked example above shows the total for every card in our comparison.

Is a card with no foreign currency fee worth it for a single trip?

Often, yes. Many cards with no foreign currency fee have no annual fee, so even one week outside the eurozone makes it worthwhile. Allow enough time for the application, the checks and delivery so that the card arrives before you leave.

Should I withdraw in euros or in the local currency at the ATM?

Always in the local currency. If the ATM offers to convert into euros, decline. The ATM operator's conversion includes its own markup, which is almost always more expensive than your card network's rate.

Do I pay foreign transaction fees in Switzerland or the UK?

Yes, if your card charges a foreign currency fee. What matters is the currency: francs and pounds are foreign currencies, even though both countries are in Europe. In euro countries such as Austria, Italy, Croatia or Bulgaria, on the other hand, there is no foreign currency fee.

Do I need to tell my bank before I travel?

Usually not. Banks recognise payments abroad automatically these days. It does make sense, though, to check your limits and test the approval app before the trip so that online bookings and larger payments do not fail.

Can I rent a car with a debit card?

Sometimes, but not reliably. Many rental companies require a genuine credit card in the main driver's name for the deposit. Some only accept debit cards with additional insurance or a higher deposit. Check the conditions when you book.