Credit Cards with Low Foreign Transaction Fees

Abroad trips are undoubtedly expensive. If you’re a frequent international traveler, it is significant that you check your card first before you use it for your expenses. There are cards that have high interest rates while others resist the trend and decide to drop foreign transaction charges. Once known as currency conversion fees, they may be favorable for those searching for big rewards in return. However, for simple and undemanding consumers, credit cards with low foreign transaction fees are much more attractive.

Facts about Foreign Transaction Fees

If you own a MasterCard or a Visa credit card, there will be a processing fee. This is applied on all foreign transactions or those that use local currencies. Though the rate is minimal, this goes up as the issuer adds its own charge. If you travel a lot for any purpose, you may want to consider a card that has low transaction fees when used overseas.

Those with cards that have high fees on such process may find it best to switch to a card that offers 1% transaction fee at the most. Remember that when you apply for a new card, this will hurt your credit score. A few inquiries will not do much damage though especially if you currently have excellent credit.

Finding the Best Credit Card for You

When applying for a new card, note that the foreign transaction fee should not be the only thing that you should reflect on. You have to balance every aspect out including interest rates, rewards programs, and annual fees. There will also be an exchange rate. Travel experts agree that using credit cards in foreign countries will help you save money because of the auspicious exchange rate.

Banks have varying charges on transaction fees. Here are some of the issuers and details about their foreign transaction fees:

·         Discover – Most of their credit cards don’t have a transaction fee. The problem however is that Discover is not accepted freely on many areas outside North America.

·        Capital One – Enjoy no transaction fees with this company. If your card is Visa or MasterCard, Capital One will take the fee for you. The Venture Rewards Card is considered as one of the best credit cards for international travelers.

·         American Express – They charge a transaction fee but if you have Platinum or Centurion card, this is not something you have to worry about. By the end of 2010, they have announced that there will be no foreign transaction fees on both cards. This became effective before the end of March 2011.

·         Chase – They apply the standard rate for overseas transactions. However, they try to give more points and rewards to customers to overshadow the fees. One of the favorite credit cards here is the Chase Sapphire Preferred which is quite ideal for travelers. This does not only provide perks but it also lets you gain huge bonus points each year. The foreign transaction fee is waived for the first year of card ownership.

Foreign transaction fees are among the most confusing elements in a credit card agreement. It is important that you check the conditions that apply on the card regarding your purchases overseas.