You might have a card that doesn’t charge these fees. There are some ways that you can avoid costly international transaction fees:Ĭheck your credit cards’ terms and conditions. A few ways to avoid international transaction fees 1 When combined with the fees, you could be paying at least a 6% premium on your purchase by using your credit card. For many cards, this rate is at their sole discretion, and you may not know how big that margin is in advance. On top of that, most credit cards charge a 3-5% margin on the daily interbank or market exchange rate for the day. For example, if you spend $100 and your fee is 3%, you’ll spend an extra $3, but if you spend $1,000, you’ll be paying an extra $30 in fees. You might be thinking that 3% doesn’t sound too bad, but these fees can quickly add up if you’re making a lot of small purchases or you’re making large purchases. 1% of that fee may go to the payment processor, whether it’s Visa or MasterCard, and the other 2% might go to the bank that issued your credit card, such as Chase or Bank of America. The average international transaction fee will be around 3% for purchases made in US dollars. How much should you expect to pay in fees? In other words, anytime a credit card is used to make a purchase and the transaction needs to be processed into the local currency of the seller, you’ll incur a foreign transaction fee. And while most of these charges are applied to travelers, they can also be added to your credit card bill when you make a purchase online from a foreign vendor. Anyone who’s traveled internationally and used a credit card to buy something knows about those pesky foreign transaction fees that are applied to every purchase.Īn international transaction fee is charged to you, the consumer, by your credit card company whenever you buy something in a foreign currency.
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