Then smile and enjoy your trip, feeling very clever for avoiding so much unnecessary expense. When using a credit card, use a card with low international fees, and make sure your transactions are charged in the local currency - not dollars. Pay for most items with cash (use a bank that charges low rates for international ATM transactions, and withdraw large amounts at each transaction - keeping the cash safe in your money belt). The Bottom Line: Here’s the best formula for saving money as you travel. It’s possible to buy prepaid “cash cards” - which you load with funds before you leave, then use like any other credit or debit card - but they come with high fees and aren’t worth considering for most trips. Bankrate has a good comparison chart of major credit cards and their currency-conversion fees.ĭon’t bother with prepaid cards. Most credit unions have low-to-no international transaction fees. Capital One has a particularly good reputation for no-fee international transactions on both its credit cards and its debit cards linked to a checking account. issuer who offered credit cards with no foreign transaction fees. If you’re going on a long trip, do some research and consider taking out a card just for international purchases. Just a month or two ago Capital One was the only major U.S. Some companies offer lower international fees than others - and some don’t charge any at all. If you’re getting a bad deal, get a new card. Quiz your bank or credit-card company about the specific fees that come with using their card overseas. But by the time you get your statement, it’s too late - so it’s smart to make a call before your trip to get the whole story. Banks are required to break out international transaction fees as line-items on your statement, helping you to see exactly what you’re paying. So, how can a smart traveler avoid - or at least reduce - these fees? Here are a few suggestions.Īsk about fees. These are similar to the fees associated with using your debit card for ATM withdrawals. Visa and MasterCard levy a 1 percent fee on international transactions, and some banks that issue those cards also tack on a currency conversion fee (additional 1–3 percent). While these fees are legal, they’re basically a slimy way for credit-card companies to wring a few more dollars out of their customers. Over the last decade, banks have dramatically increased their fees for overseas transactions. Still, several cards available today do carry foreign transaction fees.Travelers returning from Europe often open their mail to discover they paid more for their trip than they thought they had. Today, however, many of these concerns have been alleviated through the modernization of the global banking system. Originally, these fees were intended to defray the costs to banks for settling and clearing these international payments and minimizing their exchange rate risk between currencies. Many banks and credit card issuers will charge domestic customers with foreign transaction fees if they make a transaction abroad, or online from an overseas website. Foreign transaction fees are not always the same as currency conversion fees and may be tacked on to foreign transaction charges.Several banks or credit card issuers now offer certain customers waivers on these fees, or fee-free cards.Online purchases that take place with overseas vendors may also be subject to such a fee.These fees are typically 1%–3% of the value of the transaction and are paid by U.S. Best No-Foreign-Transaction-Fee Credit Card With No Annual Fee Apply Now on Wells Fargos secure site or call (866) 229-6633 Rates & Fees Wells Fargo Autograph Card 4.8 Authority Annual Fee 0 Regular APR 17.9927.A foreign transaction fee is imposed by a credit card issuer on a transaction that takes place overseas or with a foreign merchant.
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