Credit card question

[bjcourt]

When you use your credit card in a foreign country, are you charged an additional fee for doing so? I rarely use my credit card even in the U.S.

 

Thanks for any help on this.

 

bjcourt

[TudorSue]

It depends on the terms of your particular credit card and/or credit card sponsoring bank. Plus there can be two types of fees: a foreign currency transaction fee levy and a credit card processing fee. These can total 3% of the purchase price. The best thing to do is call your credit card company and ask them what fees they levy on your particular type of card.

 

I acquired a Capital One credit card (with no annual fee) just because they do not levy any foreign currency transactions fees. Of course, they reserve the right to change this in the future, but it's saved me money so far.

[robinpow]

Most banks now charge the 3% fee. However if you think about it, you pay about the same to exchange cash.

 

I would suggest that you call your credit card company, and check. Also tell them that you will be traveling, where and what dates. Many companies will freeze the card if there is a sudden change in spending habits. Also this will give you a little extra protection, if someone steels your credit card info.

[cruisemom42]

Most cards charge the fees listed above. There are a few cards (AAA also has one) that don't charge the fee, or charge a lower fee, but if you don't travel outside the US much, it may not be worth getting such a card.

 

From my experience, it's still better to use a credit card rather than cash for most things, because you have a record and you can always dispute the charge if something goes awry (a shipped item that breaks en route, or a bogus charge from a hotel that you don't notice until you've checked out....)

 

Here's another tip. If you are buying something in a shop, do NOT have them convert the purchase into US dollars prior to charging it. If you do, you will end up paying for the conversion twice, as most often the credit card company will change it back into the local currency when the charge is made, then back AGAIN to your currency for billing. Thus, you lose twice as much.