Traveling Abroad This Summer? You Might Have Trouble Using These Types of Credit Cards

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Certain types of credit cards aren’t always easy to use internationally. Find out why you should always have a Visa or Mastercard when traveling abroad. 

Summer is almost here, and it’s a popular time to travel abroad. There’s usually a lot of planning that goes into an international vacation, including setting up your flights, booking places to stay, and scheduling activities. But there’s also an important step that people often miss.

If you’re going to be traveling abroad this summer, having the right type of credit card is a must. Because even though the vast majority of U.S. stores accept the same types of cards, that isn’t the case internationally.

You might have trouble using American Express and Discover cards

Every credit card has a payment network that processes transactions made with that card. The name of the payment network is printed on the card, and in the United States, the networks are:

VisaMastercardAmerican ExpressDiscover

Some merchants don’t accept credit cards from every payment network. For example, a merchant may accept Visa and Mastercard, but not American Express or Discover.

Visa and Mastercard have traditionally been the most widely accepted payment networks, while American Express and Discover have lagged behind in acceptance rates. That’s not the case in the United States anymore, as 99% of U.S. merchants that accept credit cards accept American Express and Discover. So, if a store lets you pay with a credit card, you can most likely use whichever type of card you want.

However, it’s a different story in other countries, where Visa and Mastercard are still far more widely accepted. American Express and Discover cards can be hit or miss. Here’s a look at the number of countries and merchants worldwide that accept cards from each payment network:

There’s a sizable difference in how many merchants accept Visa and Mastercard, compared to how many accept American Express and Discover. And that’s almost entirely due to merchant acceptance internationally. Remember that acceptance rates in the United States are now very similar for all four networks.

I live outside the United States and travel often, so I have some firsthand experience with this. With merchants that accept credit cards, I’ve never had trouble using a Visa or a Mastercard. But there have been plenty of times I haven’t been able to use my American Express cards.

What to have in your wallet when you travel abroad

Whenever you travel internationally, bring either a Visa or a Mastercard credit card. If you have any American Express cards or Discover cards you like, you may be able to use them with some merchants. But it’s a good idea to have a Visa or Mastercard as a backup.

Also, make sure to only use credit cards with no foreign transaction fee. Some cards charge an extra fee for foreign transactions, with the standard amount being 3%. There’s no reason you should pay this fee, because there are plenty of cards available that don’t charge it.

No matter where you are, it’s also always wise to carry some cash in the local currency. Paying by credit card is better when you can, since you can earn rewards this way and you can get your money back if anything goes wrong with a purchase. Not all businesses accept credit cards, though, so having cash is important just in case.

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We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers.
The Ascent does not cover all offers on the market. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.American Express is an advertising partner of The Ascent, a Motley Fool company. Discover Financial Services is an advertising partner of The Ascent, a Motley Fool company. Lyle Daly has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Mastercard and Visa. The Motley Fool recommends Discover Financial Services and recommends the following options: long January 2025 $370 calls on Mastercard and short January 2025 $380 calls on Mastercard. The Motley Fool has a disclosure policy.

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