Does Your Credit Card Work When Deployed Overseas?

Where Your Credit Card Will Work

Many major credit card networks, like Visa and Mastercard, are accepted worldwide. So, if you’re relocating from Eglin Air Force Base in Florida to Kadena Air Base in Okinawa, Japan, your current U.S. credit card should work fine.

That being said, credit card acceptance varies. Credit cards are usually accepted in developed countries, on-base facilities, and in larger cities or tourist areas. But if you’re moving to a remote or rural region, you might have trouble using your credit card.

Have an American Express or Discover card? It’s a good idea to contact the company and find out if your credit card will work overseas. While these issuers have an international presence, they’re accepted less frequently overseas than Visa or Mastercard.

Understanding Chip-and-PIN vs. Chip-and-Signature Cards

One of the most common issues that deployed service members run into overseas is the type of payment terminals used. Even if your credit card works internationally, it may not work at certain retailers.

The U.S. uses chip-and-signature cards, while many other countries use chip-and-PIN cards. Automated terminals, like at gas pumps and self-checkouts, often require a PIN. Without one, your card may be declined even if it works fine at staffed businesses.

Before your move, call your credit card company and find out whether your specific card supports PIN priority. If it does, you’ll need to request a PIN prior to deployment. Choose a PIN that you can easily remember in case you need it when paying.

Always Notify Your Bank Before Deployment

Although modern fraud systems are pretty good at deciphering true fraud from false flags, deployment is not routine travel. Sudden charges from overseas locations can trigger fraud alerts, which could freeze your account. Not to mention, resolving fraud issues abroad can be extra difficult if you’re trying to reach customer service in another time zone.

Before deploying overseas, here’s a checklist of things you should do to protect your credit card against potential fraud:

• Notify your bank of the deployment and the country you’re going to.
• Provide your deployment window.
• Make sure your email or VOIP number is accurate.
• Add a trusted person back home as an account manager.

Two-Factor Authentication Can Get Tricky

Two-factor authentication is a great way to keep your credit card safe while abroad. But when you’re living in another country, you might not have your U.S. cell phone number, reliable cell service, or secure internet access. If you’re unable to access two-factor authentication, you could get locked out of your bank account.

Fortunately, you can prevent two-factor authentication issues before you head overseas. Here’s what you can do:

• Install and log into your banking apps while still stateside.
• Set up app-based two-factor authentication.
• Add a secondary (recovery) email to your account.
• Enable offline authenticator codes.

Because the deposit reduces the lender’s risk, approval requirements are typically more forgiving. This is especially helpful for young recruits with limited financial histories.

Watch Out for Foreign Transaction Fees

Even if your U.S. credit card works overseas, you should be aware of foreign transaction fees. Many credit card issuers charge 1%-3% per purchase when you use your card in another country. Those fees can add up quickly during a six or 12-month deployment.

Many credit card companies automatically waive foreign transaction fees for eligible military personnel under the Servicemembers Civil Relief Act (SCRA) and Military Lending Act (MLA), but not all do. Find out if your card issuer waives foreign transaction fees, and if not, consider switching credit cards before you deploy.

Avoid Dynamic Currency Conversion (DCC)

When you pay abroad, the merchant might ask whether you want to pay in U.S. dollars or local currency. The answer? Always choose local currency.

If you choose to pay in U.S. dollars, the merchant uses a process called Dynamic Currency Conversion (DCC), which often has very high exchange rates and extra fees. In general, your bank will always provide a better conversion rate than the merchant does.

Bring a Backup Payment Method

Even if your primary credit card works overseas, it’s still recommended to bring a backup payment method. In addition to your primary card, you should consider bringing a secondary credit card from a different bank, a debit card, and a small amount of local currency. That way, if your primary card gets lost, stolen, or frozen, you won’t be stuck without a way to pay.