Some Foreign Credit Card Fees Can Be Avoided

By Author: Alisdair Cosgrove
Total Articles: 184
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Nearly every major U.S. credit card company, except possibly one, will charge a two to three percent foreign transaction fee, if your credit card is used internationally.

Many credit card companies did not clearly disclose or explain these fees in their terms and conditions until recent times.

Many people received notification of a class action lawsuit settlement earlier this year, regarding these fees and when they will be charged. This important lawsuit has been settled and now credit card companies are required to state, in very clear terms, what their foreign and international transaction fees are.

When you are wondering how much your current credit card company will charge on international transactions, call the customer service number to find out, most will probably inform you 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.

ATM withdrawals ...
... usually are free from foreign transaction fees, however if you will be using a debit card as a credit card there may be some added risks.

Better fraud protection can be expected with a credit card than with a debit card; this is a particularly good reason to not use a debit card to make purchases abroad. When there are fraudulent charges and overcharges made on your credit card, you can contest them and receive a refund. If, on the other hand, your debit card has been fraudulently used, you will not only be faced with a depleted bank account, but it often takes a great deal longer to get your money returned.

It seems that the best way for you to keep from paying 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 pays to know how much you will be spending, even in your day-to-day life, but it's even more important when you are on vacation, ATM transactions usually call for a small transaction fee. 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, thus protecting yourself from being robbed.

The conversion of funds back to your own local currency carries fees as well as what you will have already paid to convert to the foreign currency.

You can use the safe alternative of traveler's checks instead of cash, but there is a fee charged when they are purchased and they are not accepted everywhere, but they are replaceable if lost or stolen.

If you are applying to get a credit card that will not charge you additional fees for foreign purchases, be sure you understand the terms and conditions of the credit card policy to know the card you will be getting is the one you thought it was. 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.
Alisdair Cosgrove is a freelance writer specializing in personal finance. You can read more of his work at JSNet Credit Cards for credit card comparisons and also offers a comprehensive list of hotel rewards credit cards.