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Flights, hotels, food and tours can add up really fast when you’re traveling, especially if you’re planning an international getaway. One travel expense that is often overlooked is foreign transaction fees. Some credit cards charge no foreign transaction fees, but if yours does, you’ll run into them whenever you make purchases using your credit card outside of the U.S. These fees can run anywhere from 1 percent to 4 percent of each credit card transaction you make and can pile up quickly if you’re not mindful of your international spending. Let’s take a closer look at what foreign transaction fees are, how to avoid them and which credit cards can make it easier to make purchases overseas without overspending. What are foreign transaction fees?A foreign transaction fee (FTF) is a surcharge credit card holders pay for transactions processed outside of the U.S. These can be purchases you make while traveling abroad or online from a merchant based overseas. Foreign transaction fees are composed of two charges. One comes from the card issuer—for example, Chase, Bank of America or Citi. The other is from the network: Visa, Mastercard, Discover or American Express. How much do foreign transaction fees cost?Every credit card will have varying terms that dictate how much a foreign transaction fee will cost the cardholder, so it’s important to review your credit card’s terms and conditions to know exactly how much you’ll be paying. You can usually find this information in the “Pricing and Terms” or “Rates and Fees” section. You should see the exact percentages charged for these fees under the “Fees” section. Foreign transaction fees generally range from 1 percent to 4 percent and tend to average around 3 percent of each transaction. Paying around $3 per $100 you spend may not sound that expensive, but these fees can add up if you’re making a lot of purchases with your credit card on a foreign getaway. Credit card foreign transaction fee chartHere’s a breakdown of foreign transaction fees for major issuers:
You should still use a credit card when you travelWhile it’s important to keep foreign transaction fees in mind, don’t be scared off from using a credit card while traveling internationally. There are a lot of benefits you can gain from using one. You can avoid paying foreign fees if you pick up the right credit card before you travel. Make sure to compare credit cards to see which option might offer the most perks for your needs, including no foreign transaction fees. The best travel credit cards and rewards cards let you earn cash-back, airline miles, hotel points or flexible rewards for each dollar you spend. Besides having the potential to earn rewards, using a credit card overseas is a great way to score zero fraud liability coverage. If your credit card is lost or stolen abroad, you won’t be on the hook for a single cent of fraudulent purchases. How to avoid foreign transaction feesNo matter what your travel budget is, try to avoid foreign transaction fees for a simple reason: They increase the cost of your purchase without adding any value. Fortunately, you can eliminate or reduce the fees you’ll pay with a little planning. Here are a few suggestions to get you started: Exchange your money before leavingIf you decide to go the cash route, exchanging your U.S. dollars for another currency before leaving the U.S. can be more convenient and less costly than doing it abroad and may cost less than foreign transaction fees. When exchanging your money overseas, you could run into challenges, especially if you don’t know the country very well. You could experience long wait times, difficulty finding a nearby currency exchange or face exorbitant fees when changing currencies. Open a bank account with no foreign transaction feesOpening a bank account that doesn’t have foreign transaction fees can be useful when you’re using your debit card or getting cash from ATMs overseas. When you withdraw cash abroad, you could be charged both international transaction fees and out-of-network ATM fees. Another option would be to use a bank account that reimburses the fees for international ATM usage, such as Schwab Bank’s High Yield Investor Checking Account. The only caveat is that you have to connect your account to a Schwab One brokerage account. As a bonus, Schwab also doesn’t charge foreign transaction fees. Get a credit card that doesn’t charge foreign transaction feesApplying for a card that doesn’t charge foreign transaction fees before your trip or overseas purchase is an ideal option for avoiding additional fees while traveling. It’s worth noting, however, that just because an issuer notes a foreign transaction fee it doesn’t mean your specific credit card will charge you one. There are plenty of credit cards that don’t have foreign transaction fees, even if their issuers have them. Here are some of the best credit cards with no foreign transaction fees. Best credit cards with no foreign transaction feesChase Sapphire Reserve: Best for extra travel perks
The Chase Sapphire Reserve® is one of the most popular travel credit cards around. With bonus points upon opening the card, a fee credit for Global Entry or TSA PreCheck and an annual $300 travel credit, this card offers a lot for travelers. One of the biggest appeals is the Chase Ultimate Rewards portal, where cardholders can redeem points at a higher value for travel-related spending with travel partners. The annual fee is higher than many travel cards but it could be worth it if you travel frequently. Capital One Quicksilver Cash Rewards Credit Card: Best for simple cash back
The Capital One Quicksilver Cash Rewards Credit Card is a great option for both travel and cash back. With it, you can earn 1.5 percent unlimited cash back, even on international purchases. Plus, there are no foreign transaction fees or annual fees. This makes the card inexpensive to own and use. This card also uses the Visa payment network, which means that it’s accepted in more than 200 countries and territories. Discover it Cash Back: Best for customer service
With no annual fee, 5 percent cash back on certain spending and no foreign transaction fees, the Discover it® Cash Back could save you some money on international travel. Discover Bank is also known for providing excellent customer service, which can help if you run into issues overseas. Discover has expanded its reach significantly in recent years, but it’s still not quite as widely accepted as Visa and Mastercard. Do some research ahead of time to make sure you’ll be able to use your Discover card where you’re going. If your credit card is not accepted where you’re traveling, the lack of foreign transaction fees won’t help you much, and you’ll need a back-up card. Capital One Venture Rewards Credit Card: Best for flexible travel rewards
The Capital One Venture Rewards Credit Card is not necessarily a premium travel card, but the 2X rewards on all purchases are still a deal for international travelers. Paired with a low annual fee and no foreign transaction fees, it has the makings of a solid entry-level card for travelers. The flexibility comes in when you earn and redeem points. You can earn unlimited 2X points on all your spending. Then, you can redeem points by booking travel through the Capital One rewards portal, receiving a statement credit for recent eligible travel purchases (within the last 90 days) or transferring miles to partner airline and hotel programs. American Express Gold Card: Best for international dining
The American Express® Gold Card could be the ideal travel card for international foodies. If you like to dine out while you travel abroad, this card gives you a great opportunity to earn 4X points at restaurants worldwide, with no foreign transaction fees. (As of Feb. 22, you can earn 4X for takeout and delivery only in the U.S.) Amex Gold also lets you redeem points with a diverse list of travel partners. In some cases, your points could be worth up to 2 cents per point or more. Chase Sapphire Preferred is a close runner-up for traveling foodies. This card lets earn 3X Ultimate Rewards points on dining worldwide, with no foreign transaction fees. You can also earn 5X points on travel booked through Chase Ultimate Rewards and transfer points 1:1 with the same diverse list of travel partners as the Chase Sapphire Reserve—but for a more modest $95 annual fee. Be aware that while Amex cards are accepted in more than 100 countries, you may need a back-up card in some places. If you’re traveling in Europe and Asia, for example, you’ll likely encounter some merchants that don’t accept Amex. Both Chase Sapphire Preferred and Chase Sapphire Reserved, on the other hand, are Visa cards. Visa and Mastercard are the most widely accepted credit cards in the world. The bottom lineForeign transaction fees don’t have to be a part of international credit card spending. If you don’t plan to travel outside the country, this is not an issue. But if you do, you can save money by using a credit card that’s accepted where you’re traveling, doesn’t charge foreign transaction fees and offers benefits for frequent travelers. Is there a foreign transaction fee on Bank of America debit card?Bank of America will assess an international transaction fee of 3% of the converted US dollar amount. Foreign ATM operators may offer to do your currency conversion for you, but they may charge a higher fee for conversion.
Which Bank of America Card has no foreign transaction fee?The Bank of America Travel Rewards card is worth it in part because it gives 25,000 points to online applicants who spend $1,000 in the first 90 days. It also rewards all users with at least 1.5 points / $1 spent on all purchases, and it has a 0% foreign transaction fee.
Does Bank of America waive foreign transaction fee?Credit cards with no foreign transaction fees give you the freedom to travel internationally and spend money without worrying about the added cost of foreign transaction fees. Start your next trip off right by applying for a Bank of America® credit card with no foreign transaction fees.
How do I avoid foreign transaction fees on my debit card?How to avoid foreign transaction fees. Open a bank account with a foreign transaction fee-free institution. You can get slapped with a foreign transaction charge if you use your debit card outside of your native country. ... . Exchange currency before traveling. ... . Avoid using foreign ATMs. ... . Avoid the Dynamic Currency Conversion.. |
Bank of america debit card no foreign transaction fee
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