Do you travel overseas? Do you shop online for overseas brands? The answer for most people is ‘Yes’ and ‘Yes’, and 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.
3% cashback on groceries, travel, land transport, utilities and online travel.
Save up to 22.1% at Caltex and 20.2% at Esso on petrol, as well as 5% cashback at all other petrol stations
All other purchases still get you 0.3% rebate
Up to $500,000 travel insurance coverage and up to $400 coverage for baggage loss
Earn cashback 7 days a week, 365 days a year, everywhere.
Dig a great dining deal? 6% rebate on local and overseas dining every day and for online food delivery
3% rebate on local, overseas and online groceries, travel, land transport and recurring bills
Save up to 23% at Caltex and 20.4% at Esso on petrol, as well as 5% Cashback at all other petrol stations
All other purchases still get you 0.3% rebate
Cash rebate is auto credited to you
Min annual income of $30,000 for citizens/PRs or $45,000 for foreigners
Annual fee waived the 1st 2 years, but $192.60 for principal card and $96.30 for supplementary card after
If you cant spend min $800 each month, you get a reduced rate of 0.3% rebate on all your spending
Earn max $80 rebate each month
Free travel insurance only when your air ticket is charged to your card
$50 cash rebate upon approval, no min spend required
Only applicable to new OCBC cardholders
Customise and filter
Leave blank to leave out of filtering
Learn about overseas spending credit cards
Find out how to earn more cashback and rewards when travelling or buying online from overseas stores.
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.
At Finty we want to help you make informed financial decisions. We do this by providing a free comparison service as well as product reviews from our editorial staff.
Some of the products and services listed on our website are from partners who compensate us. This may influence which products we compare and the pages they are listed on. Partners have no influence over our editorial staff.
Disclaimer: You need to be logged in to claim Finty Rewards. If you proceed without logging in, you will not be able to claim Finty Rewards at a later time. In order for your rewards to be paid, you must submit your claim within 45 days. Please refer to our T&Cs for more information.