Avoid Foreign Fees with the Right Credit Card
A lot of international travelers end up paying foreign transaction fees when they buy something or withdraw cash from ATMs overseas.
Follow these tips and learn how to dodge foreign fees!
You can easily dodge international or foreign fees by using debit or credit cards that don’t charge them while you’re traveling.
Luckily, there are plenty of great card options out there that come with this perk, making your trips a bit smoother and more affordable!
What Are International Transaction Fees?
International transaction fees are those extra charges that banks and credit card issuers add when you make purchases outside the country.
They can really vary, usually between 1% and 5% of what you spend. To avoid any nasty surprises, it’s a good idea to check your card’s terms before you take it abroad.
Also, don’t forget that payment networks like Visa, Mastercard, and American Express might have their own international fees on top of what your card issuer charges.
Some issuers might choose to waive these fees, but if they don’t, you could end up paying both the bank’s fee and the network’s fee. These charges are usually listed on your monthly statement.
How Much Do International Transaction Fees Cost?
The fees can really vary from card to card. Some won’t charge you anything at all, while others might have fees between 1% and 3%.
If you find a card that’s charging more than 3%, it’s definitely worth a second look, since fees that high are unusual.
Tips for Avoiding International Transaction Fees
Traveling abroad is such an exciting adventure, but those annoying international transaction fees can really put a damper on your fun.
But the good news is that avoiding international transaction fees is not complicated if you use the correct credit cards while shopping outside the country.
They let you make purchases abroad without slapping you with international transaction fees.
Here are some simple tips to help you steer clear of those extra charges:
Pick the Right Credit Card
Before you jet off, make sure you have a travel credit card that doesn’t charge international transaction fees.
Cards like the Chase Sapphire Preferred® Card, Bank of America® Travel Rewards Credit Card, and Capital One Venture Rewards Credit Card are excellent choices—they let you spend freely overseas without those pesky fees.
Check Out Airline Cards
If you have a go-to airline, take a look at their credit card options! Many of them waive foreign transaction fees.
For example, the Delta SkyMiles® Blue American Express Card not only skips these charges but also has a $0 annual fee.
Read the Fine Print
Take a minute to check the terms and conditions of your card. Knowing what fees to expect can save you from nasty surprises while you’re trying to enjoy your trip.
Give Your Bank a Heads-Up
Don’t forget to let your bank know you’ll be traveling! This can help avoid any card holds and ensure everything goes smoothly when you’re trying to make purchases.
Be Smart with ATMs
When you need cash, look for ATMs that are part of your bank’s network to dodge extra fees.
And always choose to be charged in the local currency; it’s usually a better deal than going with “dynamic currency conversion.”
Change Cash Before You Go
If you’re hoping to avoid those pesky ATM or transaction fees while traveling, paying with cash can be a simple solution.
Before you go, consider exchanging your U.S. dollars at a bank, credit union, or currency exchange store so you have the local cash on hand for things like meals and souvenirs.
Generally, banks and credit unions offer better exchange rates and lower fees than airport kiosks, which charge more as you get closer to your departure.
Conclusion
The simplest way to avoid foreign transaction fees is to use a credit or debit card that doesn’t charge them.
If you don’t have one yet, apply for a no-foreign-fee card well in advance so you have time to receive it before you travel. With a little planning, avoiding those extra fees while traveling is totally doable!
