Are you a frequent traveller? Do you use your credit cards when you travel abroad? It makes a lot of sense to do that. After all, credit cards are safer to carry than cash, especially if you’ll need a significant amount of money during your trip. But there’s more to consider than convenience and security.

Here are three other things to consider when deciding whether or not to use your credit card overseas.

1. Currency Conversion Fees

Let’s say your credit card purchases are usually billed in AUD and you visit another country (let’s say one using the euro). When you make a purchase in that country using your Australian credit card, a currency conversion takes place between the two. Your credit card company probably charges a fee for this service.

If you want to avoid it, you can pay with cash instead. Convert what you’ll need to the local currency ahead of time. But if you want the convenience and safety of your credit cards, find out what fees you’ll be charged for each transaction up front. At the very least, you can then minimise your transactions requiring currency conversions.

2. Exchange Rates

Speaking of exchanging the AUD for another currency through your credit card, you should also keep exchange rates in mind. Exchange rates fluctuate. The AUD might not be worth as much in one place as it is in another, or even have a different value day-to-day as the markets change.

Keep an eye on exchange rates between Australia and the country you plan to visit. Know how far your money will really go. The last thing you want is to show up and find out the hard way that you don’t have as much money as you thought.

3. Travel Perks and Rewards

The previous considerations were of a cautious nature. But there are positive sides to using your credit cards overseas that deserve consideration two. For example, if you have several credit cards look at the perks and rewards offered by each. You can save money on your trip if you have frequent flyer points racked up on one card for example.

Maybe a specific card offers free international travel insurance while your others don’t. Or maybe one will reward you with more points towards future trips if you book your flight and hotel stay using that card now. See which credit card will give you the most while you travel, and then prioritise its usage.

Credit cards can be great tools for the overseas traveller. But they can also be costly if you don’t understand the charges related to international transactions. Go in with both eyes open and you can avoid some of the pitfalls while reaping the most benefit from the cards you have available to you.