Fees For Using Your Credit Card Overseas

[jeffrey]

Courtesy of Heshan Demel, CardRatings.com, Consumer Credit Researcher

Foreign exchange fees on credit cards should be of keen interest to those traveling beyond the borders of the United States. Exchange rates offered by credit cards are usually hard to beat. Of equal and perhaps greater importance, however, is the foreign transaction fee that your credit card bill might show once you have returned home from your trip. This fee, which is often a shock to cardholders, has been increasing as of late.

Many travelers now rely on credit cards to pay for overseas travel and purchases. For many consumers, credit cards are easier to keep up with than traveler's checks and they're almost universally accepted now.

Foreign transaction fees charged by credit card issuers will mean you may pay a little extra for that umbrella drink in the Caribbean or that Parisian pastry.

Virtually every credit card assesses an international transaction fee for purchases done outside the 50 states, and that could even include U.S. territories like Puerto Rico and the U. S. Virgin Islands. Visa and MasterCard charge a 1% processing fee and most card-issuing banks add additional fees as well (on top of the 1% fee levied by MasterCard/Visa).

This fee is generally a percentage of the U.S. Dollar value of the transaction. So, even if you paid 100 Euros for a meal that was actually $125.00 (U.S. Dollars), the foreign transaction fees will be assessed on the $125.00 amount.

A February 2007 survey of credit card issuers revealed the following foreign exchange rates:

American Express - 2%

Bank of America - 3%

Chase - 3%

Citi Bank - 3%

Washington Mutual - 1%

Wells Fargo - 3%

Capital One - No Foreign Transaction Fee

Discover - Rarely accepted overseas so not part of this list

[tinapbeana]

when i was in argentina for a month, i used a combo of cash and a BOA debit card. the debit card paid my weekly hotel bill, and from what i could tell there were no noticeable fees. once a week i would hit an ATM and take out about $300 (900 pesos) for food, cabs, shopping, and entertainment. I'd carry a little with me and keep the rest in the hotel safe. most non-tourist traps in cordoba didn't take plasitc, which is why i carried cash..