9 Simple Tips for Using Your Canadian Credit Card in Other Countries

Sure, visiting a new country is  fun, but using your credit card abroad can get a little confusing. Don't worry! By following these simple steps, you can use your travel card wisely whilst avoiding extra fees and stress.

1. Check for Foreign Transaction Fees

A foreign transaction fee is a small charge added to international purchases. Most banks tack on about  2% or 3% to each purchase (typically 2.5%). While minuscule, these fees can add up quickly, especially on a long trip!

To determine if your card incurs foreign transaction fees, contact your bank before departure or check your bank's mobile app or website. If you want to find a Canadian credit card without foreign transaction fees, check out our Best No Foreign Transaction Fee Cards in Canada post.

2. Tell Your Bank You're Travelling

Sometimes, your bank might stop your card if it sees transactions from another country. This is because they think someone else might be using it. To stop this from happening, tell your bank you are going on a trip. You can do this by:

• Calling the bank's help line.
• Updating your trip plans in your bank's app.
• Using your bank's website.

This helps your bank authorize your purchases abroad.

You can also look at the Canadian government's website for advice about staying safe with your money when you travel.

3. Always Use Local Currency

When you shop in another country, the store or machine might ask: Do you want to pay in Canadian dollars or the country's money (local currency)?

In these cases, always pick the country's local currency.

If you choose Canadian dollars, the store uses Dynamic Currency Conversion (DCC). This usually costs you more money. Sometimes, you also get a worse exchange rate and more fees.  

Essentially, opting to pay with the local currency typically allows you to pay less.

4. Carry More Than One Credit Card

In some countries, stores might prefer Visa cards over Mastercard, or the other way around. This is especially true when it comes to Amex credit cards, which are less widely accepted. If you only have one type of credit card and it doesn't take it, you might not be able to pay!

Therefore, it’s a good idea to bring:

• Your main credit card.
• A second credit card, just in case.
• A little bit of local cash.

Need help finding the perfect credit card for your next trip? Read More: Best travel credit cards in Canada. 

5. Pay Strategically

Using your credit card when you travel is usually safe. But for really small purchases, like a snack or street food, cash (paper money) is often more appropriate.

In fact, some stores in other countries might want you to spend a certain amount to use a credit card.

For bigger purchases, a credit card is safer because:

• It helps protect you if someone uses your card without permission.
• You often get better money exchange rates.
• You can question a charge if something goes wrong.

Some credit cards even help protect you against the unexpected, using coverage like Credit Card travel insurance.

6. Know Your PIN

Many countries outside of Canada use a system where you input a specific code, known as a PIN,  into a payment terminal for every purchase. In Canada, many people rely on tap payments, so it’s easy to forget your card PIN. Before you travel, check that you know your PIN or ask your bank to reset it, as you may need it for chip payments or cash withdrawals abroad.

You might need your PIN to:

• Buy train tickets.
• Use self-serve machines.
• Pay for gas.
• Use other automatic machines.

If you don't have your PIN, your card might not work in many places.

7. Use Bank ATMs, Not Money Exchange Places

If you need paper money (cash), use a bank's ATM. Avoid using just any currency exchange booth that just changes money. These exchange booths often:

• Give you less money for your dollars.
• Charge higher fees.
• Have other hidden fees you might not see.

Bank ATMs usually give you the most money for your dollar.

Before you use an ATM in another country, ask your bank about their fees. Hidden fees might include:

• Fees for taking out money from an ATM.
• Fees for using an ATM in another country.
• Interest if you take out cash using your credit card (called a cash advance).

Some good travel cards will lower or get rid of these fees.

8. Keep Your Card Safe and Know What to Do If You Lose It

Losing your card in another country can be scary. But if you act fast, you can keep your money safe.

If your card gets lost or stolen:

1. Call your bank right away.
2. If your bank has an app, you can lock your credit card. This stops anyone from using it.
3. Look at your recent purchases to make sure no one else used your card.
4. Ask your bank for a new card. They might be able to send you a temporary one.

Many credit cards protect you if someone uses your card without your permission after you tell the bank it's missing.

FinlyWealth’s blog on credit card fraud protection also provides helpful tips on how to protect yourself from credit card fraud and what to do if you lose your card.

9. Check Your Credit Card Bill During Your Trip

Don't wait until you get home to check your credit card bill. Look at your purchases every few days using your bank's app on your phone. Make sure:

• All purchases are correct.
• No one else used your card (no fraud).
• You weren't charged twice for the same thing.
• The money exchange rates seem correct.

If something appears to be incorrect, contact your bank immediately. Most banks can correct mistakes or prevent your card from working if necessary.

Other Helpful Travel Tips

Here are a few more ways to make your trip easier and safer:

• Use a card with travel insurance. Some cards offer protection if your trip gets cancelled, your flight is late, or your bags are lost.
• Keep copies of your credit card information. Write down your bank's phone number for help and the last four numbers of your card. Keep this paper in a safe place, not in your wallet.
• Know how much you can spend. Some banks might let you spend less money on your card when you are in another country. Check your bank transaction limit before you leave.
• Use a digital wallet. Using tools like Apple Pay or Google Wallet on your phone provides extra security. Many countries now let you pay by simply tapping your phone or a physical card.

Read FinlyWealth’s guides on the Best Travel Credit Cards in Canada and the Best Credit Cards for Digital Nomads in Canada for simple tips on choosing a card that fits your travel plans and helps you save while you explore.

Conclusion

Using a credit card in another country doesn't have to be tricky. With a little bit of planning, like picking the right card and monitoring your spending, you can have a great trip with minimal stress.