![]() ![]() That conversion costs money, and some card-issuing banks pass that cost along to consumers in the form of foreign transaction fees.Īccording to Nessa Feddis, vice president and senior counsel for the American Bankers Association, foreign transaction fees also help banks offset the greater fraud risks associated with international transactions. Fillet, a financial adviser at Roosevelt Wealth Management in New York City. dollars so they can charge your account,” said Victoria L. Why do some credit cards charge foreign fees? According to the experts, this fee is levied because international purchases require extra effort to process.įoreign transaction fees exist “because banks have to convert your money spent into U.S. What are foreign transaction fees?įoreign transaction fees, also called international transaction fees, are charged to cardholders when they purchase items while overseas or when they make purchases that use an overseas bank to process the transaction. If you do have cards that still charge a foreign transaction fee - or are just unfamiliar with the fee overall - here are the ins and outs of this particular fee and advice on avoiding extra charges when traveling abroad. The key is finding a credit card with no foreign transaction fee that you like and signing up before you leave on your next international trip. These days, however, more and more credit cards issuers are offering card products with no foreign transaction fees, so you don’t have to pay this extra charge if you don’t want to. What’s that all about?Ī foreign transaction fee is a charge, usually around 3 percent, that many credit card issuers and payment networks add for each transaction you make abroad. While reviewing your credit card statement, you noticed the expected airfare, lodging and food charges, but also “foreign transaction fee” charges. ![]() You just got back from a pricey trip abroad. ![]()
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