There are many hidden expenses when it comes to traveling overseas. And one of them comes from the plastic in your wallet. Most credit cards charge a fee for making transactions in foreign currencies, an amount which is usually between 1 and 3% of your purchase price. Fortunately, one of the benefits of the Credit CARD Act has been to make these kinds of fees more transparent to consumers. So, at least now when you’re traveling, you should be aware of how much extra your charges are costing you, as any exchange fees should be broken out separately on your credit card statement.
That’s not to say that you should avoid using your credit card while you’re on vacation. Charging your purchases to a travel credit card while you’re abroad does have a few very significant advantages. Among the most important is the convenience and security of not having to carry too much cash. And you may be pleased to find out that even if you are being charged a fee for using your card, you’ll still almost certainly come out ahead versus changing your money at the airport or hotel, since the exchange rates that credit cards use are quite competitive.
Still, wouldn’t it be better to not be charged the fee at all? Fortunately there has been a trend towards offering this benefit on many cards, typically targeted to more affluent customers more likely to be frequent travelers.
Read on to find a list of credit cards and charge cards that do not charge foreign transaction fees:
» Read more