What Is An International Credit Card: 4 Best Credit Cards

Introduction

How do I know if my card is international?

List of best International credit card 

Why you should have an international credit card

What Is An International Credit Card – Why should you have it?

Globalization is mostly looked at by some people as socio-cultural integration of the world but at its core, it’s economic integration. The world is socially, politically and culturally connected because of the global economy. 

Ever wondered how it is possible to buy something online with a credit card from a store located in a different country. That’s because banks, payment gateways and processors are globally integrated. So by default, most credit cards you’d come across are international in nature with Visa and Mastercard being the most popular global networks for financial transactions.

Difference Between Credit Card and Debit Card

A quick refresher. Credit cards work on a debt and score model. You buy goods and services with a credit card, which adds to your interest based credit debt, which has to be paid on a periodic basis. Timely payment is a factor that increases your credit score and credit score allows you to get an increased credit limit, potentially lower interest rates depending on the issuer and credit worthiness for ease of getting mortgages and loans on relatively lower interest rates. Debit card on the other hand, charges money already present in your bank account.

How Does an International Credit Card Work?

Whether you’re buying something off the internet, or withdrawing money from an ATM from a different country, your credit card automatically calculates the currency exchange and processes the transaction or withdrawal accordingly. If you wonder how it is possible that your credit card from an American company is able to work overseas, the answer is that banking is globally interconnected seamlessly. However, borrowing from a foreign lender through a credit card on your American credit score will not work. There is no such system in place for international communication on credit risk, nor any framework for equivalence of an individual’s credit risk in different countries.  

How to Know Whether Your Credit Card is International?

Majority of people across the US use either Mastercard or VISA cards which work virtually all across the world. So it’s more than likely that the credit card you’re using is Mastercard or VISA. 

2 Reasons You Should Have an International Credit Card

1- International Payments

If you’ve ever bought something online from a store located in another country, you don’t even need an explainer on the amount of convenience an international credit card brings with itself. In a world connected through the internet, shopping has become international. Guilty pleasures of shopping aside, there’s international payments to make if your business is anything remotely digital, for your website domains, hosting etc. 

2- Travel & Corporate Finance

If you’re a traveler (an international one), doing without an international credit card is going to prove incredibly hard. Instead of getting cash in the currency of the country you’re visiting, you could simply hit the ATM with your credit card after landing in the country. When it comes to corporate finance, if you’re a corporate individual, having an international credit card comes in extremely handy given the international nature of the corporate world with international business deals, business events and mergers etc. 

Best International Credit Card

A lot of financial services 3issue credit cards but they globally work because of the payment networks. This is why you see Visa and Mastercard logos on so many different credit cards issued by different creditors. Because the former two are payment networks with worldwide presence. These networks allow the transactions to proceed. Below are the most popular International credit card systems.

1- Visa Inc. (NYSE:V)

Visa Inc. (NYSE:V) is the best credit card network all around. It is the most widely operated network around the world with presence over 200 countries and territories. Choosing an issuer of VISA credit cards should be your discretion since most have their own pros and cons and are better or worse depending on your specific need. 

2- Mastercard Incorporated (NYSE:MA) 

Mastercard Incorporated (NYSE:MA) is the second best option for a credit card. Again, choosing a Mastercard issuer would fall on your specific international need whether travel, or corporate business etc. but Mastercard’s network also spans virtually the entire world. 

3- American Express Company (NYSE:AXP)

American Express Company (NYSE:AXP) differs from Mastercard and Visa in that it’s a payment network as well as the lender of its own credit cards. Mastercards and Visa are payment networks that work with third parties for lending on credit cards. A drawback with American Express Company (NYSE:AXP) is that it is accepted in fewer regions across the world than VISA or Mastercard. 

4- Discover

Discover, like the American Express Company (NYSE:AXP) makes lending decisions on its cards while also operating a payment network. However, its global presence is not as good as Mastercard’s or Visa’s. That’s not to say it’s not a global credit card, it is widely accepted in China and many other countries other than the United States.