Kerry Hedden asked:
Whether you’re planning on leaving the country for pleasure or business, it is important to think about how to pay for your stay. While traveling, extensive use of a credit card is becoming more and more common. With a credit card, there is less concern of your money being lost or stolen and you don’t have to deal with the hassle of changing your money into foreign currency. However, one thing that any international traveler should be aware of is the fact that many credit cards feature a foreign transaction fee.
Foreign transaction fees usually come in at around 3 percent or so and, depending on the credit card company, are tacked onto every charge you make while outside of your home nation. Because this is a recent charge, having just come into existence in the last few years, it is important that everyone who travels be aware of what they signify.
The first thing to understand about foreign transaction fees on your credit card is that they are figured using a percentage of your purchase. Also, you should note that the foreign transaction fees are also derived from the amount of money spent in your own country. For instance, if you purchase something for 200 Euros, you’ll be paying about 270 US dollars, and the transaction feel will be a percentage of the 270 dollars. Because these charges can mount up, it is important to understand exactly how much you are spending whenever you use your credit card. Before departing, call your credit card company and find exactly how much you will be spending in fees per purchase.
While this should not stop you from using your credit card while abroad, it is still an important fact to keep in mind. While using your credit card, you can also supplement your spending with the use of travelers checks, which are almost universally accepted. Similarly, you can also use a prepaid debit card, though their use may be limited in some areas. You should also call your credit card company to see if there are any deals available on foreign transaction fees; sometimes, you can get the fee lowered or dropped for a brief period of time.
This is a relatively new fee; representatives of the major credit card companies state that these fees are used to offset errors made while processing charges made in another country. This fee is meant to account for issues with foreign merchant charge backs, issues with the conversion of the currency involved and even outright fraud.
Emma
Whether you’re planning on leaving the country for pleasure or business, it is important to think about how to pay for your stay. While traveling, extensive use of a credit card is becoming more and more common. With a credit card, there is less concern of your money being lost or stolen and you don’t have to deal with the hassle of changing your money into foreign currency. However, one thing that any international traveler should be aware of is the fact that many credit cards feature a foreign transaction fee.
Foreign transaction fees usually come in at around 3 percent or so and, depending on the credit card company, are tacked onto every charge you make while outside of your home nation. Because this is a recent charge, having just come into existence in the last few years, it is important that everyone who travels be aware of what they signify.
The first thing to understand about foreign transaction fees on your credit card is that they are figured using a percentage of your purchase. Also, you should note that the foreign transaction fees are also derived from the amount of money spent in your own country. For instance, if you purchase something for 200 Euros, you’ll be paying about 270 US dollars, and the transaction feel will be a percentage of the 270 dollars. Because these charges can mount up, it is important to understand exactly how much you are spending whenever you use your credit card. Before departing, call your credit card company and find exactly how much you will be spending in fees per purchase.
While this should not stop you from using your credit card while abroad, it is still an important fact to keep in mind. While using your credit card, you can also supplement your spending with the use of travelers checks, which are almost universally accepted. Similarly, you can also use a prepaid debit card, though their use may be limited in some areas. You should also call your credit card company to see if there are any deals available on foreign transaction fees; sometimes, you can get the fee lowered or dropped for a brief period of time.
This is a relatively new fee; representatives of the major credit card companies state that these fees are used to offset errors made while processing charges made in another country. This fee is meant to account for issues with foreign merchant charge backs, issues with the conversion of the currency involved and even outright fraud.
Emma
