Using Credit Cards Abroad: How to Avoid Hidden Fees and Maximize Convenience

Credit cards provide unmatched convenience and enticing rewards, making them the go-to option for many travelers. Swiping a card abroad often feels simpler—and safer—than dealing with local currency exchanges. While that's generally true, travelers often encounter unexpected pitfalls, especially fees and hidden costs. Here’s how to navigate these challenges wisely.

Choosing the Right Travel Credit Card The market is full of credit cards offering impressive travel-related perks. Co-branded cards from airlines and hotel chains—such as Emirates Skywards or Marriott Bonvoy—can deliver significant value through rewards redeemable within their networks. Yet, despite their appeal for collecting points, they may not always be the most cost-effective choice for everyday expenses overseas.

Beware of Hidden Fees

When traveling internationally, your credit card transactions typically attract two main types of fees:

• Cash Advance Fee: Charged when withdrawing cash directly from your credit card, usually a fixed amount (typically AED 200–400 per withdrawal).
• Foreign Currency Transaction Fee: Charged when you spend in a currency different from your card’s billing currency, usually between 2–4% of the transaction amount.

These fees might seem small individually, but they quickly add up. For example, if you use your card to withdraw AED 2,000 in foreign currency, you could pay an additional AED 300 as a cash advance fee plus a currency transaction fee of around AED 60–80. Suddenly, a simple withdrawal costs significantly more than anticipated.

Sometimes using alternatives like debit cards with lower or no foreign fees (such as those from Revolut or Wise) or cash obtained via currency exchanges might be more economical. Always verify fees upfront to make informed decisions.

You’ll find exact fee structures detailed clearly in your card’s terms, accessible through your banking app or issuer’s website. But fees aren’t the only factor—you also need to consider exchange rates.

Watch Out for Unfavorable Exchange Rates

Not all exchange rates are created equal. Banks set their own rates, and differences can be surprisingly significant—sometimes even more impactful than the stated fees. Even a card boasting a low foreign transaction fee might become costly if the bank uses unfavorable exchange rates.

Before traveling, check your bank’s current exchange rate in the app or by contacting customer support directly. Additionally, be wary of Dynamic Currency Conversion (DCC)—when terminals abroad offer to process your transaction in your home currency. While convenient, this often includes an inflated exchange rate, making your purchase considerably more expensive. Always choose to pay in the local currency to avoid unnecessary markups.

Quick Security Tips Before Your Trip

Security matters just as much as savings. Before you leave:

• Set travel notifications through your banking app.
• Enable two-factor authentication for account security.
• Carry at least one backup card, kept separately in case of loss or theft.

These simple precautions help ensure your financial safety while abroad.

Balancing Convenience with Cost

Ultimately, how meticulously you manage these costs depends on your priorities. Fees and exchange rates might seem trivial compared to the excitement of trip planning—but understanding these expenses can significantly affect your travel budget.

By taking a little time to prepare, verifying fees, and following these practical tips, you’ll make smarter spending decisions abroad. Spend less on unnecessary fees and more on unforgettable experiences.

Before You Go Checklist

✅ Verify FX fees and cash advance charges in your banking app.

✅ Note your bank’s customer support number for international calls.

✅ Confirm local contactless payment limits at your destination.

Ready for your next trip? Check your credit card’s foreign fee policy now, or explore fee-free alternatives to travel smarter and save more.