Loading ...US travellers are feeling the pinch in their credit card account. A new fee has been introduced which is tagged onto every purchase made abroad. The fees are called international transaction fees (or sometimes foreign transaction fees). It’s worked out by taking a percentage of the total cost of your purchase.
At the moment Mastercard and Visa charge a 1% fee for processing such transactions. It doesn’t stop there though as your bank can also add a fee. This can range from 0 – 3 percent on average.
This is bad for international tourism and the amounts can add up if you’re a seasoned traveller. These fees will certain make some people think twice about going abroad. There is however some ways of getting around the fees. Some new credit cards are offering much lower fees. But where you can save on the transaction fees you will then face the possibility of a credit score change. Always make sure you weigh up your options before signing up for a shiny new card. Things to consider are the rewards you can get, any annual fees and importantly the interest rates. Just when you though that’s enough to worry about don’t forget the exchange rates.
Travellers also face other surprises from their credit card issuers. You’re also faced with other problems when you cross the border such as hiked ATM usage prices. The best advice to make sure you have a chat with your credit card company to see what fees are in place before making that trip.
