An international credit card might sound like a formal type of card, but since you can use almost any credit card anywhere on earth, it actually describes a card’s characteristics. An international card doesn't charge foreign exchange fees and should include strong travel benefits, such as airport lounge access and travel insurance.
This article walks you through what to look for, reviews the benefits, and compares some of the top options for international credit cards. This way, you can save money, earn rewards, and rest assured, knowing you’ve got important coverage should you need it.
Key Takeaways
- International credit card work the same way as typical credit cards, but help save you money on fees when travelling abroad.
- Many of the best international cards also include travel benefits, like airport lounge access, free checked bags, and insurance.
- You can also use prepaid credit cards or USD credit cards to save on fees when travelling abroad.
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What is an international credit card?
An international credit card provides travel benefits and doesn’t charge extra fees for making payments or purchases while abroad. There’s no such thing as a credit card that only works internationally.
Our idea of a great international credit card includes things like:
- No foreign exchange fee
- Airport lounge access
- Free checked bags
- Rental car discounts
- Comprehensive travel insurance packages
Types of international credit cards
There are several different types of international credit cards, including travel cards, U.S. dollar cards, and specialty prepaid cards.
Normal travel credit cards
Travel credit cards earn travel rewards or miles and typically offer better insurance and travel perks. These perks can include things like airport lounge access or free checked bags.
Here are two of the top travel rewards cards:
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U.S. dollar credit cards
When you make purchases in the U.S., U.S. dollar credit cards pay merchants in U.S. dollars, so you can skip the conversion fee. Remember, though, that you'll also need to make your monthly credit card payments in USD, too.
Here are two solid options in this category:
Foreign currency prepaid cards
You can preload cards, such as the Wise card, with foreign or Canadian currency, and they'll perform the conversion(s) later. These are a helpful option and often offer favourable exchange rates, plus perks such as no cash advance fees.
Alternatively, you can find Canadian prepaid cards with no foreign transaction fees, such as the EQ Bank Card.
Benefits of international credit cards
Many of the best international credit cards also double as the best travel credit cards in Canada. Here are some of their benefits:
No foreign transaction fees
Credit cards typically charge a 2.5% foreign transaction fee on purchases made in currencies other than Canadian dollars. International credit cards eliminate currency exchange rate fees by charging either reduced rates (typically 1.5%) or no fees at all. Several no-FX-fee travel cards are available to Canadians that offer very impressive value.
Check out these top options:
Travel perks
If you travel often, you'll get plenty of mileage with all the travel perks that come with high-end travel credit cards.
For example, many offer lounge memberships at the very minimum, which will save you a bit of money if you want to access exclusive airport lounges. Some even toss in a few free lounge passes, like the Scotiabank Passport Visa Infinite Card. The best of the best, like the American Express Platinum Card, have unlimited lounge access.
Other cards may offer free first checked bags, like the TD Aeroplan Visa Infinite Card, which extends the benefit to up to eight other travellers. This card also gives you a $100 NEXUS rebate every 48 months.
Many cards offer discounted car rentals. Examples include the Scotiabank Scene+ Visa Card's offer for 20% off AVIS rentals, and the no-fee BMO CashBack Mastercard's partnership that provides 25% off at Alamo and National.
There are almost too many travel perks to list, but a few more include:
- Earning travel rewards points to book your next getaway sooner
- Automatic hotel status upgrades
- Free nights at hotels
- Companion vouchers for flights
Travel insurance
You'll often also get travel insurance, which can provide not only peace of mind when going international but also some compensation in the event of something bad happening.
The best travel insurance credit card in Canada, the RBC Avion Visa Infinite Privilege, has an all-encompassing suite of insurance coverage that will put you at ease no matter where you go:
RBC Avion Visa Infinite Privilege
| Extended Warranty | 2 years |
| Purchase Protection | 120 days |
| Mobile Device | $1,500 |
| Travel Accident | $500,000 |
| Emergency Medical Term | 31 days |
| Emergency Medical Maximum Coverage | unlimited |
| Emergency Medical over 65 | 7 days |
| Trip Cancellation | $2,500 |
| Trip Interruption | $5,000 |
| Flight Delay | $1,000 |
| Baggage Delay | $750 |
| Lost or Stolen Baggage | $2,500 |
| Hotel Burglary | $3,000 |
| Rental Car Theft & Damage | Yes |
Please review your insurance certificate for details, exclusions and limitations of your coverage.
Do Canadian credit cards work in other countries?
Yes, Canadian credit cards are issued by card networks that operate worldwide, but some merchants may decline certain networks. For example, American Express charges fairly high processing fees, so some smaller retailers don't accept it.
To be on the safe side, you might want to carry a few cards from different issuers, and don’t forget to carry cash in the local currency in case of emergencies.
FAQ
Can you use Canadian credit cards internationally?
Yes, you can use a Canadian credit card in foreign countries. Foreign transaction fees and other charges can add up quickly, though, so your best option is to use a no-FX fee credit card when travelling and spending outside of Canada.
Is an international credit card worth it?
Yes, if you travel frequently, an international credit card can be a valuable asset, especially if it includes solid travel insurance coverage. Using the right travel credit card when making purchases in other countries is very important if you’re trying to save money or earn rewards while travelling.
Is Visa or Mastercard better for international travel?
You shouldn’t have any problem using either a Visa or a Mastercard abroad – both are widely accepted internationally. The better network for your trip depends on which travel perks and benefits you want from the credit card, so read the terms and conditions carefully.
Do all credit cards work internationally?
Most Visa, Mastercard, and Amex cards are accepted internationally. If the merchant accepts your credit card network, there’s no reason your card shouldn’t work. However, it’s a good idea to contact your card issuer to inform them you’re travelling internationally and avoid any fraud alerts.
What's the best Canadian credit card for international travel?
There are several types of international credit cards, and the best international travel card is the American Express Cobalt Card. The best international card for spending in the U.S. is the CIBC U.S. Dollar Aventura Gold Visa Card, and the best foreign currency prepaid card comes from Wise.
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