Traveling Abroad: Should You Get an EMV Credit Card? - NerdWallet
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Traveling Abroad: Should You Get an EMV Credit Card?

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Traveling Abroad: Should You Get an EMV Credit Card?

Most international travelers learn that overseas merchants prefer accepting credit cards with an EMV chip over those with a magnetic strip. But that doesn’t necessarily mean you should apply for a chip-enabled card before you travel abroad.

EMV cards will make some transactions more convenient

Although most other countries have moved away from magnetic strip cards, it’s still possible to use this old-fashioned technology overseas. Shopkeepers and restauranteurs might grumble a bit, but most are equipped to accept cards without an EMV chip if you ask.

However, traveling without a chip-enabled card is likely to be inconvenient at some self-service payment kiosks in Europe. These are commonly found at train stations, where customers can use a machine to purchase tickets. Many don’t accept magnetic strip cards, so you might be forced to seek out a station employee to process your transaction. This is something of a hassle, and could cost you valuable time if you’re on a tight schedule.

No foreign transaction fees should be priority one

Many American credit card issuers are starting to produce credit cards with EMV chip capability; you might even have one in your wallet right now. Consequently, there’s a different attribute you should be looking for in a card to use overseas: foreign transaction fees.

It’s common for credit card issuers to charge a fee (usually 3% of the transaction cost) on purchases made abroad. That might not sound like much, but it could tack a serious chunk of change onto your vacation. For example, if you spend $5,000 during a month-long backpacking trip to Europe, with a card that charges a 3% foreign transaction fee, you’ll end up having to shell out an additional $150 in fees.

Looking for a card that charges no foreign transaction fees before you board the plane is a smart idea.

The Nerds’ favorite cards for overseas travel

Here are a few good credit cards that come chip-enabled and charge no foreign transaction fees:

The Barclaycard Arrival Plus™ World Elite MasterCard®

Barclaycard Arrival Plus™ World Elite MasterCard®

Apply Now on Barclaycard's secure website

Pros

  • High rewards rate
  • 0% on balance transfers for 12 months (must be completed within first forty-five days of account opening)
  • No foreign transaction fee

Cons

  • Has annual fee

Bonus Offer

Earn 40,000 bonus miles when you spend $3,000 or more on purchases in the first 90 days from account opening.

Annual Fee

$89 - Waived first year

Intro APR Promotions

0% on balance transfers for 12 months (must be completed within first forty-five days of account opening)

APR

  • APR: 16.24% or 20.24%* Variable
  • Cash Advance APR: 25.49%, Variable

Card Details

  • Earn 40,000 bonus miles after you spend $3,000 on purchases in the first 90 days — that's enough to redeem for a $400 travel statement credit
  • Earn 2X miles on all purchases
  • Get 5% miles back to use toward your next redemption, every time you redeem
  • Chip card technology, so paying for your purchases is more secure at chip-card terminals in the U.S. and abroad
  • No foreign transaction fees on anything you buy while in another country
  • 0% introductory APR for 12 months for each Balance Transfer made within 45 days of account opening. After that, a variable APR will apply, currently 16.24% or 20.24%, depending on your creditworthiness.
  • Complimentary online FICO® Credit Score access for Barclaycard Arrival cardmembers

With the Barclaycard Arrival Plus™ World Elite MasterCard®, you’ll earn 2 miles on every dollar you spend. Each mile is worth one cent when redeeming for travel. And since you earn 5% of your miles back every time you redeem, that makes the card’s effective rate 2.1%.

Cashing in rewards is easy with the Barclaycard Arrival Plus™ World Elite MasterCard®. You’ll simply book your trip however you normally would with the card, then go online and redeem your miles against the purchase in the form of a statement credit.

To get you to your next vacation faster, the Barclaycard Arrival Plus™ World Elite MasterCard® comes with a signup bonus: Earn 40,000 bonus miles when you spend $3,000 or more on purchases in the first 90 days from account opening. Its annual fee is $89 - Waived first year.

The Chase Sapphire Preferred®

Chase Sapphire Preferred®

Apply Now on Chase's secure website

Pros

  • A large bonus
  • No foreign transaction fee
  • Cool factor - metal card
  • Rewards redemption bonus through Ultimate Rewards

Cons

  • Has annual fee
  • Best for savvy travelers

Bonus Offer

Earn 50,000 bonus points when you spend $4,000 on purchases in the first 3 months from account opening

Annual Fee

Introductory Annual Fee of $0 the first year, then $95

Intro APR Promotions

None

APR

  • APR: 16.24%-23.24% Variable
  • Cash Advance APR: 25.24%, Variable

Card Details

  • Earn 50,000 bonus points when you spend $4,000 on purchases in the first 3 months from account opening. That's $625 in travel when you redeem through Chase Ultimate Rewards®
  • Named a 'Best Credit Card' for Travel Rewards by MONEY Magazine
  • 2X points on travel and dining at restaurants & 1 point per dollar spent on all other purchases
  • Earn 5,000 bonus points after you add the first authorized user and make a purchase in the first 3 months from account opening
  • $0 foreign transaction fees, plus chip-enabled for enhanced security and wider acceptance when used at a chip card reader
  • 1:1 point transfer to leading frequent travel programs at full value - that means 1,000 Chase Ultimate Rewards points equal 1,000 partner miles/points
  • Travel and shop with confidence with premium Travel and Purchase Protection Benefits, including Trip Cancellation/Trip Interruption Insurance, Auto Rental Collision Damage Waiver, Purchase Protection and more
  • Introductory Annual Fee of $0 the first year, then $95

The Chase Sapphire Preferred® is one of the most popular travel credit cards out there, and it’s easy to see why. You’ll earn 2 points for every dollar spent on travel and dining in restaurants and 1 point per dollar spent on all other purchases.

Usually, points earned with the Chase Sapphire Preferred® are worth $.01 each. But if you redeem them for travel through Chase’s online booking tool, their value goes up by 25%. You’ll also have the option to transfer your points to participating frequent traveler programs at a 1:1 ratio, which provides a lot of flexibility.

The signup bonus is great: Earn 50,000 bonus points when you spend $4,000 on purchases in the first 3 months from account opening. It charges an Introductory Annual Fee of $0 the first year, then $95.

The Capital One® Venture® Rewards Credit Card

The Capital One® Venture® Rewards Credit Card is a good choice if you’re interested in minimizing annual fees. As with the Barclaycard Arrival Plus™ World Elite MasterCard®, you’ll earn 2 miles for every dollar you spend. Each mile is worth $.01, and rewards can be redeemed for nearly any travel purchase in the form of a statement credit.

The Capital One® Venture® Rewards Credit Card’s signup bonus is impressive: Enjoy a one-time bonus of 40,000 miles once you spend $3,000 on purchases within the first 3 months, equal to $400 in travel. Its annual fee is lower than our two other picks at $0 intro for first year; $59 after that. Enjoy your chip trip!

Lindsay Konsko is a staff writer covering credit cards and consumer credit for NerdWallet. Follow her on Twitter @lkonsko and on Google+.


Image via iStock.

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  • http://www.micrograam.com/ Neelakantha

    Nice information on EMVs. EMV is a very good technology which has been used in many parts of the world. I am not sure how USA has ignored that.

  • http://www.micrograam.com/ Neelakantha

    Nice information on EMVs. EMV is a very good technology which has been used in many parts of the world. I am not sure how USA has ignored that.

  • http://www.nycparamount.com/ Time Square Hotel

    Here this topic is such a nice, Difference between cards and EMV cards mainly security issue. Any chips or more immune to fraudsters and scam artists. If you have some more information then you can share here.

  • http://www.nycparamount.com/ Time Square Hotel

    Here this topic is such a nice, Difference between cards and EMV cards mainly security issue. Any chips or more immune to fraudsters and scam artists. If you have some more information then you can share here.

  • disappointed expat

    Seriously, how is it that AMERICA is so behind on technology?!?!?!

  • disappointed expat

    Seriously, how is it that AMERICA is so behind on technology?!?!?!

  • William Sze

    Great post about EMV technology, every card holder should use this technology. as a card holder i know every card holder have security issues. But this technology will help to solve. And i would like to thankful Alliance Bankcard Services for providing me a great and square technology.

  • William Sze

    Great post about EMV technology, every card holder should use this technology. as a card holder i know every card holder have security issues. But this technology will help to solve. And i would like to thankful Alliance Bankcard Services for providing me a great and square technology.