Is using a credit card abroad still worth it in 2025?

After the COVID-19 outbreak, many Thai people have started travelling abroad. Using credit cards to pay for goods and services abroad has become a popular choice for many people instead of exchanging cash because of the convenience, safety, and have many privileges such as reward points or cash back.

But in 2025, the Thai currency still weakened and the cost of living abroad still increased. Let’s see if using a credit card in 2025 will still be worth it.

1. The hidden costs you may overlook

Although using a credit card may seem convenient, cardholders should be aware that most banks in Thailand charge foreign transaction fees. Fees are typically between 1.5% to 2.5% of the payment amount, which many people don’t realize they’ve already paid because it’s included in their total bill.

In addition, when using a credit card abroad, another thing to watch out for is the unstable exchange rate, as the system will calculate the total expenses based on the exchange rate on the day the transaction is processed. There may be a delay of 1-3 days after using a credit card, and the exchange rate can fluctuate each time. Some cards may have an international swipe fee in addition to the currency conversion fee, such as a temporary charge taken before the final amount, with any excess refunded to your account within 7-14 days.

2. Interesting privilege

Using credit cards abroad often comes with privileges, such as reward points or automatic travel insurance, which is why many people still choose to use them.

Many credit cards offer special points when spending abroad, such as double points. These points can be redeemed for rewards, miles, or discounts, and if used in conjunction with a campaign from a participating bank, you can also earn additional cash back. Another benefit that many people often overlook is international travel insurance. If you use a credit card to pay for airfare, the system will automatically ensure that you are covered, including medical expenses if you get sick abroad, compensation for flight delays, lost luggage, or accident insurance with coverage of up to several million baht, depending on the type of card.

3. Risks should be aware of before using a credit card

Using a credit card abroad is convenient, but it also comes with risks. If you make a mistake, you could end up with a huge debt without intending to.

Dynamic Currency Conversion (DCC). Many stores, especially in Europe and Japan, often offer to let you pay in Thai baht. While it might seem convenient and allow you to see the bill clearly, the reality is that you will be charged a higher exchange rate—typically 3-5% and also incur a double fee. The solution is to always choose to pay in the local currency

Overspending. Many people might forget that credit cards are not the same as cash. Each time you spend, it might seem like a small amount, just around a thousand baht, but before you know it, the total could add up to ten thousand baht. If you cannot pay the debt, the interest rate will immediately rise to 16% per year.

Security Risks. If you lose your card or have your information stolen, there could be transactions made without your knowledge. Therefore, it’s important to set up real-time alerts and establish a daily spending limit every time you use your card abroad.

“In 2025, using a credit card to pay abroad is still considered ‘worth it’ if used carefully, as it is convenient, safe, and eliminates the need to carry large amounts of cash. Additionally, it offers many benefits. If you plan ahead, choose the right card, understand the fees, and manage your expenses, credit cards can be a useful tool for traveling. They remain a secure and worthwhile option for spending abroad.”

Reference from

KTC