Best overseas spending credit cards

Do you travel overseas or shop online for overseas brands? The answer for most people is ‘Yes’ to both. If you’re not using a credit card that rewards overseas spending, you’re missing out. Compare the most rewarding credit cards for your overseas spending right here at Finty.

By   |   Verified by Kwok Zhong Li   |   Updated 20 Sep 2023

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Comparing overseas spending credit cards

American Express Singapore Airlines Business Credit Card

On website

FeaturedApply by 3 October 2023

American Express Singapore Airlines Business Credit Card

Cashback

N/A

Cashback cap

N/A

Minimum spend

N/A

Sign up bonus

30,000 points and more

Highlights

  • Enjoy a welcome offer of your choice and travel rewards worth over S$1,300: Earn up to 74,400 HighFlyer points or a Samsonite luggage, a complimentary Accor Plus membership worth S$418 offering a free night’s stay every year, and up to 20,000 HighFlyer points worth S$190 when you spend with the Singapore Airlines Group. Terms and Conditions apply.
  • Earn up to 8.5 HighFlyer points per S$1 spent on eligible Singapore Airlines Group flights.
  • Earn 1.8 HighFlyer points per S$1 spent on all other eligible spend.

Pros

  • Earn generous welcome offers.
  • Enjoy Priority Pass membership with two complimentary visits per year for you and a guest.
  • Fast-track to KrisFlyer Elite Gold status with S$15,000 spent with the Singapore Airlines Group within the first 12 months.
  • Offers 51 interest-free days.
  • Flexible payment with Pay Small.

Cons

  • The annual fee of S$301.79 p.a (inclusive of 8% GST).
HSBC Advance Credit Card

On website

HSBC Advance Credit Card

Cashback

3.50% on any spend

Cashback cap

$70.00 on any spend

Minimum spend

N/A

Sign up bonus

Get a S$150 cashback or a Samsonite ZELTUS 69cm Spinner Exp with built-in scale when you apply now. Terms and Conditions Apply.

Highlights

  • Get up to 3.5% Base Cashback on local and overseas spend (Terms and Conditions apply).
  • Get an additional 1% Bonus Cashback with HSBC Everyday+ Rewards Programme.
  • 1-year annual credit card fee waiver.

Pros

  • Earn up to 3.5% cashback when you meet the criteria.
  • No minimum spend is required.
  • Split your purchases into installments at 0% interest over 3 to 24 months.
  • Comes with complimentary travel insurance.
  • Enjoy shopping, dining, and travel deals.

Cons

  • The annual fee reverts to S$194.40 p.a. after the initial year (waived if you spend S$12,500 per year).
  • The ongoing interest rate of 26.90% p.a.
OCBC 365 Credit Card

On website

OCBC 365 Credit Card

Cashback

Up to 6.00% on petrol spend

Cashback cap

$160.00 on any spend

Minimum spend

S$800.00 per month

Sign up bonus

N/A

Highlights

  • Earn 6% cashback on fuel spend and 5% on local and overseas dining.
  • 3% cashback on groceries, travel, land transport, utilities, streaming, and pharmacy.
  • Receive six S$6 vouchers from each of Caltex and Esso and save up to S$72.

Bank promo

  • Earn cashback 7 days a week, 365 days a year, everywhere.

Pros

  • The annual fee is waived for the 1st 2 years.
  • Generous cashback rates.
  • Multiple cashback categories to choose from.
  • Get a complimentary appetizer at Din Tai Fung when you pay using your Card.

Cons

  • Min annual income of $30,000 for citizens/PRs or $45,000 for foreigners
  • After 2 years, the annual fee reverts to $194.40 for the principal card and $97.20 for the supplementary card.
  • If you spend less than $800 each month, you get a reduced rate of 0.25% rebate on all your spending
  • Earn rate is capped at $160 per month.

Who are credit cards for overseas spending suitable for?

  • Travel enthusiasts. Would you rather be anywhere but Singapore? If you travel extensively, either for business or pleasure, not having to pay a fee every time you use the card overseas can save a surprising amount of money. Additionally, there's the added benefit of overseas spend typically earning rewards at the higher rate.
  • Online shoppers. Anyone frequently shopping online on foreign websites can save with every purchase.
  • Businesses. Save when paying overseas suppliers, service providers, and freelancers. Many business credit cards do not charge fees on foreign transactions.

Features to compare for overseas spending credit cards

  • Foreign transaction fees. Sometimes called a currency transaction fee or foreign currency fee. Typically charged on any transaction made overseas, from an overseas business, or in a foreign currency. Lower or no foreign transaction fees are better.
  • Rewards and cashback earn rates on foreign spend. Some cards reward overseas spend with an earn rate higher than the base rate.
  • Additional benefits. Besides not charging for forieng currency transactions, look for other useful features such as its welcome bonus offer, airport lounge access, free travel insurance, or concierge service.

How to compare overseas spending credit cards

  • Check the foreign transaction fee. Preferably there is no fee on overseas transactions, but if there is, how much is it? Lower is better.
  • Compare rewards. Choose if you want to earn credit card rewards points or get cashback. Once you have decided, check what the earn rate would be on overseas spend (since it's often different from what you get on SGD transactions made in Singapore).
  • Sign up bonus comparison. Getting a new credit card can be highly rewarding, so consider your options in terms of welcome bonus. Check what you need to do to trigger it, since this varies between cards.
  • Annual fees comparison. While many banks waive the annual fee for the first year or two, not all do. Assuming you keep the card and eventually incur the annual fee, is the card's features and benefits worth it?
  • Filter out offers based on what you need. For example, will you value credit card travel insurance or lounge access passes?

Pros and cons

Pros

  • Save money on foreign transaction fees.
  • Spend overseas, earn air miles, rewards points, or cashback quickly.
  • Large welcome bonuses on offer.

Cons

  • Some cards charge an annual fee.
  • Spend required to get the welcome bonus.

Learn about overseas spending credit cards

Find out how to earn more cashback and rewards when travelling or buying online from overseas stores.

  • FAQs

Do I need to notify the card issuer before I use my credit card overseas?

Many cards require you to notify the issuing bank of your travel dates and destinations, so that they can activate your card for overseas use. This is a precaution designed to prevent unauthorised overseas charges, so check your card’s Terms & Conditions to find out if this notification is needed. And even if it isn’t, it’s a good idea to let your card issuer know about your travel plans, to avoid having them freeze your card when they suddenly see unusual overseas transactions.

You will normally be able to activate your card for overseas travel via online or mobile banking. Some banks ask you to notify them by SMS, or let you perform the activation at an ATM.

Is there any way to avoid credit card foreign transaction fees?

Yes. There are several ways to do this.

One, you can avoid them completely by choosing one of the very few cards that do not charge a fee (usually between 2.5% and 3.5%) on top of the amount of your purchase when converted to SGD. In some cases this charge is levied even when you have originally paid in SGD, because the merchant’s transaction processing centre is located outside Singapore.

Two, you could look for a card offering cashback on all transactions, or on overseas transactions, at a rate equal to or higher than the percentage charged for overseas transactions. The cashback will either wipe out the effect of the overseas transaction charge, or even deliver you a net gain.

Alternatively, if you think you have a good grasp of what an air mile is worth to you, you should be able to work out how many cents return per dollar spent you are getting in air miles. For example, if you think you can use your air miles in a way that makes them worth 1.2 cents each, and your credit card gives you an average of 3 air miles per dollar spent, you are effectively getting a rebate of 3.6 cents per dollar and can happily pay a foreign transaction charge of up to 3.5% and still come out ahead.

What is an overseas spending credit card?

There are two main features that define a credit card as an overseas spending credit card.

Firstly, it may give special rewards to both online shoppers and overseas travellers for all their spending with merchants located outside Singapore, regardless of the currency used for the purchase. Rewards come in the form of air miles or cashback.

Secondly, a few cards waive the foreign transaction fee (often a 2.5%-3.5% charge levied on top of the purchase price when converted to SGD) or have a lower than usual overseas transaction fee, making your overseas spending less expensive.

Some overseas spending credit cards may have only one of these features, while a small number have both.

What other features should I look for in an overseas spending credit card?

While you want extra rewards for your overseas spending, it would be good to have a card that also offers healthy rewards for local spending, and other benefits for regular travellers, so that you don’t need to keep too many credit cards in your wallet. So look for an overseas spending credit card that also gives air miles on local purchases, and other perks like extra miles for travel-related spending (like flights and hotel accommodation) plus free airport lounge passes and free travel insurance. You may also be able to score car hire, limousine transfer, golfing and yachting privileges, usually by paying a higher annual fee.

What should I do if I’m given the option to pay in SGD via Dynamic Currency Conversion (DCC) when travelling overseas?

We don’t recommend this option, for two reasons. First of all, you’ll still pay a foreign transaction fee (if the card charges one) because the transaction is being processed overseas. But most importantly, DCC exchange rates are almost always less attractive than the exchange rate used by your card issuer.

Why do many credit cards offer higher rewards and air miles for overseas spending?

Banks know that many cardholders hesitate to use their cards when travelling overseas, and prefer to use cash. But they want you to use your card wherever you go (because they make a profit from the fees they charge to merchants) and therefore offer you an extra incentive for using your card overseas.