Avoid Foreign Transaction Fees with the Right Credit Card
Follow these tips and learn how to avoid foreign fees!
You can easily avoid international or foreign transaction fees by using debit or credit cards that do not charge them while you travel.
Fortunately, there are numerous excellent card options that come with this benefit, making your travels a bit smoother and more affordable!
What Are International Transaction Fees?
International transaction fees are extra charges that banks and credit card issuers add when you make purchases outside the country.
They can vary quite a bit, typically between 1% and 5% of what you spend. To avoid unpleasant surprises, it’s a good idea to review the terms of your card before taking it abroad.
Moreover, remember that payment networks like Visa, Mastercard, and American Express may have their own international fees, in addition to what your card issuer charges.
Some issuers may choose to waive these fees, but if they don’t, you could end up paying both the bank fee and the network fee.
These charges are typically listed on your monthly statement.
How Much Do International Transaction Fees Cost?
Rates can vary significantly from one card to another. Some may not charge you anything, while others may have fees ranging from 1% to 3%.
If you come across a card that charges more than 3%, it is definitely worth taking another look, as such high fees are uncommon.
Tips to Avoid International Transaction Fees
Traveling abroad is an exciting adventure, but those annoying international transaction fees can put a damper on the fun.
However, the good news is that avoiding charges for international transactions is not complicated if you use the right credit cards while shopping abroad.
You can make purchases abroad without those international fees.
Here are some straightforward tips to help you avoid those extra charges:
Choose the Right Credit Card
Before taking off, make sure you have a travel credit card that does not charge fees for international transactions.
Cards such as the Chase Sapphire Preferred®, Bank of America® Travel Rewards Credit Card, and Capital One Venture Rewards Credit Card are excellent choices; they allow you to spend freely abroad without those annoying fees.
Check Airline Cards
If you have a favorite airline, take a look at their credit card options!
Many of them waive foreign transaction fees. For instance, the Delta SkyMiles® Blue American Express Card not only excludes these charges but also comes with an annual fee of $0.
Read the Fine Print
Take a minute to review the terms and conditions of your card. Knowing what fees to expect can save you from unpleasant surprises while trying to enjoy your trip.
Notify Your Bank
Don’t forget to notify your bank that you’ll be traveling. This can help prevent your card from being blocked and ensure that everything runs smoothly when you try to make purchases.
Be Smart with ATMs
When you need cash, look for ATMs that are part of your bank’s network to avoid additional fees.
And always choose to be billed in the local currency; it is usually a better option than opting for “dynamic currency conversion”.
Exchange Cash Before You Go
If you want to avoid those annoying transaction fees or ATM fees while traveling, paying in cash can be a simple solution.
Before leaving, it’s advisable to exchange your money at a bank, credit union, or currency exchange bureau so that you have local cash on hand for items such as meals and souvenirs.
In general, banks and credit unions typically provide better exchange rates and lower fees than airport kiosks, which tend to charge more as your departure time approaches.
Conclusion
The simplest way to avoid foreign transaction fees is by using a credit or debit card that does not charge them.
If you don’t have one yet, make sure to request a credit card with no foreign transaction fees well in advance so you have enough time to receive it before your trip.
With a little planning, avoiding those extra charges while traveling is totally feasible!
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