Avoid Credit Card Foreign Transaction Fees

Before you head off on an international trip, give some thought to the method you are going to use to get cash and pay for things during your stay. Ways of avoiding ATM fees have been discussed in an earlier blog, but what about credit card fees?

In many cases, when you use your credit card while outside the country, you will be charged a foreign transaction fee, which is normally at least 3% of the purchase price. It’s not too difficult to find a card with no foreign transaction fees, but these usually charge you an annual fee. Remarkably, you can still find a few cards that don’t charge you either of those fees.

  • Capital One is one of the most popular, since it has several cards which have no fees. Some of these also have cash back or travel rewards.
  • Discover Card has some no fee cards also. However, it is not as widely accepted in foreign countries.
  • Bank of America has a travel rewards card that doesn’t impose fees.
  • Credit Unions – Many credit unions issue cards with no fees.

These are a few of the most known cards, although it doesn’t hurt to check with your local bank or your current card holder to see if they have any similar offers. Remember, also, to let your credit card company know when you are leaving town so they won’t withhold payment.