International Transaction Fees Are Normally Charged On Credit Cards

Nearly every major U.S. credit card company, with the possible exception of one, charges a two to three percent foreign transaction fee when you use your credit card internalionally. Not until recent years, many credit card companies did not clearly explain these fees in their terms and conditions.      

As a consequence of this, many people received notice of a class action lawsuit settlement  regarding these fees earlier this year. Credit card companies must clearly inform their applicants of all international transaction charges because the lawsuit has been settled.

If you want to know how much your credit card company charges for international credit card use, you should contact the customer service and you will probably be told that the fee is three percent. It can be very expensive on the purse to pay an extra three percent on every purchase, but these charges can be avoided.

Foreign currency exchange rates from your bank can often offer you a better deal than what you will get at a foreign currency exchange booth.   

Even though ATM withdrawals are generally free of foreign transaction charges, using your debit card as a credit card comes with some risks. A credit card provides much better fraud protection than a debit card and for this reason using a debit card abroad to make purchases can be risky. If your credit card is used by an unscrupulous merchant to overcharge or for some sort of fraud the charges can be easily contested and your card account will be refunded. A debit card used fraudulently will make your bank account disappear and it will be very slow to reappear.

It seems that the best way to pay no international transaction fees is through the use of the credit cards that charge no fees; these no fee credit cards give you security without the added expense.

It is always great to know just how much you will be spending in your day to day life, but it is even better when you are vacationing because ATM cash advance fee are charged for each transaction. Few people can tell exactly how much cash they will require while traveling, and unless you have a very precise budget, it can be difficult to withdraw the correct amount in one single transaction.

Sometimes it is hard to find a cash machine in many countries, but you have to be careful to not withdraw too large of an amount to protect yourself from being robbed. The conversion of funds back to your own currency carries fees as well as what you will have already paid to convert to the foreign currency.

Traveler’s checks are a safe alternative to cash but they are not accepted everywhere and there is a fee to purchase them.

When applying for the credit card you believe will not charge any additional fees for foreign purchases, be sure you study the terms and conditions carefully to be absolutely sure the card you are getting is the right card. Before you use the card, check the terms of it to be sure you can pay the balance off fast if the interest rate is high, so you won’t be paying extra fees in another way.