How to Avoid Paying International Credit Card Transaction Fees

Until recently, most credit card companies didn't disclose the fact that a 2-3 percent transaction fee would be attached to each international credit card transaction. However, following a lawsuit earlier this year, credit card companies are now required to disclose this information to their customers. Even if the fee is only 2-3 percent, every little bit you can save helps... the following are some tips on how you can avoid paying international credit card transaction fees when you're traveling.

Steps

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    If you can, try to use your debit card as much as possible. Banks usually charge only a few dollars (if any at all) for ATM withdrawals, plus the foreign currency rate you'll get from your bank is often significantly better than what you would get at a foreign currency exchange booth.
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    Use your debit card where ever possible, but make sure that the vendor runs it as a debit card and not as a credit card or you'll get charged the fee.
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    Visit your local bank and inquire about applying for an international credit card that won't charge you for international transactions. (Look into Discover and Capital One)
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    Convert your money into the foreign currency prior to leaving the country. Most likely you'll get a better exchange rate than you would if you went to a foreign currency exchange booth.

Warnings

  • Be careful when using your debit or ATM card because there aren't as many fraud prevention measures in place. It is easier to contest the fraudulent charges on a credit card and get a refund than it is to do the same with a debit card.

Article Info

Categories: Reduce Travel Cost