![]() ![]() Therefore, you may want to consider having a debit card from a bank account that doesn't charge foreign transaction fees. While traveling abroad, you may encounter a merchant that charges extra to use a credit card, or might not accept credit cards at all. Open a bank account with no foreign transaction fees You may still wish to bring a backup payment method such as a debit or credit card. You'll want to remember that this option carries risk because you could lose the cash or have it stolen. dollars for most major currencies, and you can do this before you leave. Banks and currency exchange stores will exchange U.S. You can avoid all transaction fees by paying for your purchases in cash while you're abroad. Exchange cash before leaving the United States Some credit cards ( like most travel cards) don't charge foreign transaction fees, as a cardmember perk. There are several ways to avoid these fees including: Apply for a credit card with no foreign transaction fees If you are charged this fee, you can usually find it listed on your credit card statement on the next billing cycle, either in the fees section or as a separate line item in your recent transactions. You could be charged a foreign transaction fee when you purchase something in a non-US currency, either online or when you're visiting another country. ![]() Why did I get charged a foreign transaction fee? Check out your cardmember agreement for details on fees for international purchases. The rate for foreign transaction fees is usually 2-5% of the entire purchase, which might include shipping costs and taxes. How much do foreign transaction fees cost? Foreign transaction fees (aka international transaction fees) can vary depending on your credit issuer or bank and the total purchase amount. ![]() What is a foreign transaction fee?įoreign transaction fees can pop up when you make a purchase with a merchant that routes your payment through a bank outside of the U.S. You've returned from vacation abroad, only to discover that your credit card statement includes charges you've never seen before: foreign transaction fees. In this article, we’ll share some things to consider when using your credit card abroad and how you can avoid foreign transaction fees when making international purchases. Subscribe to help you make more money and keep more of the money you make here. Note: This item first appeared in Kiplinger's Personal Finance Magazine, a monthly, trustworthy source of advice and guidance. But you’ll still pay a foreign-transaction fee of 3%. If you use a Bank of America debit or ATM card to withdraw cash from an ATM that is within the bank’s international network of partner institutions, you won’t be charged out-of-network fees or ATM operator fees. The Schwab Investor Checking and TD Bank Beyond Checking accounts charge no out-of-network fees and reimburse ATM operator fees (maintain a $2,500 minimum balance in the TD account to qualify for reimbursement). But with a credit card, you will likely be hit with a cash-advance fee of about 3% to 5% of the withdrawal amount. Debit cards and credit cards that charge no foreign-transaction fee on purchases also waive the fee on ATM withdrawals. in advance of your departure is likely to be less costly than making an ATM withdrawal abroad.īut if you do use an ATM outside the U.S., you may be able to sidestep some of the fees. Supplying yourself with the foreign currency at your bank in the U.S. In addition to a foreign- transaction fee, you may pay a fee to your bank or credit union for using an ATM that isn’t part of its network, an ATM operator fee for using the machine, and in some cases a mark-up for currency conversion. Withdrawing cash at an ATM abroad often involves several fees.
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