Foreign ATMs accept US debit cards, but carry backup
Ask a question.
Dear Cashing In,
I have an international trip coming up in a few months, and I’m wondering if it is smart to use my Capital One debit card. Capital One’s website says you can use the debit card “anywhere you see the MasterCard logo,” but then I read a blog where the blogger said her card didn’t work even when an ATM had the MasterCard logo. Also, does the card waive foreign transaction fees on ATM withdrawals when using an Allpoint ATM or any foreign ATM? -- Daniel
Those of us over 40 or so might remember the days when an international trip meant stocking up on travelers checks. Then you would find an exchange booth abroad that would give a favorable currency conversion rate, show your passport and receive your cash.
Today, the process is a lot more straightforward. U.S. debit cards are widely accepted at ATMs, and credit cards can be used at many shops and most hotels in popular tourist areas.
For your trip, it sounds as though you are trying to anticipate precisely where your card will work and exactly what the fees will be. It is understandable to want some certainty before you depart so that you will have access to money. However, cards are so widely accepted internationally – at least in major cities -- that I would say it is almost certain that you will not face significant problems.
Now, that doesn’t mean that every card will be accepted everywhere. Sometimes, for mysterious reasons, ATMs might decline transactions. So you’d have to find another ATM. Your success rate might not be 100 percent at shops or kiosks, either, although that might have more to do with the switch to cards with EMV chips, which is a separate issue.
Instead of worrying about why a certain card might work somewhere but not somewhere else, it’s best to follow a strategy of taking a mix of debit and credit cards that give you the most flexibility.
Ordinarily, I would not recommend you use a debit card for international purchases, since almost all debit cards have foreign transaction fees.
In your case, though, Capital One has a longstanding policy on charging no foreign transaction fees on debit and credit card purchases, says Capital One spokeswoman Amanda Landers.
She says that Capital One cards have the MasterCard logo and can be used at ATMs that accept MasterCard. If you have an online Capital One 360 account, ATM cash withdrawals are free. But if you have a card from a bank branch in one of the nine states where Capital One has branches, you will incur a fee for using a non-Capital One ATM, just as you would if you did that in the U.S. (unless you have a high-yield checking account).
Of course, the bank that operates the foreign ATM probably charges a fee. There’s no way around that.
So yes, I would say it is smart to take your Capital One debit card on your trip and have confidence using it for ATM withdrawals and at shops.
However, it is also smart to have a backup plan. You might take along at least a couple credit cards – ones that charge no foreign transaction fees. Fortunately, there are more reward credit cards than there used to be that waive these fees. In addition, make sure you have adequate cash in the local currency, just in case.
Diversify your cards, be flexible, acccept a glitch or two … and have a great trip!
Meet CreditCards.com's reader Q&A experts
Does a personal finance problem have you worried? Monday through Saturday, CreditCards.com's Q&A experts answer questions from readers. Ask a question, or click on any expert to see their previous answers.
- Split travel cost between two rewards cards: Is your trip covered? – If you want to split the cost of a trip between two rewards credit cards, you might, or might not, receive full travel protection from both. To find out, read the terms and conditions of each card, or contact your issuer ...
- Can I be charged a fee for paying a low-fare flight with credit card? – If you buy a low-cost flight through an online travel agency, you might be charged a fee for paying with credit card -- even if the agency claims to have no "hidden" fees ...
- How long should you wait to apply again for an airline card you closed? – Interested in applying for the same airline credit card you closed in order to reap a sign-up bonus? Some card issuers offer no restrictions, but you might want to consider other card options first ...