Convenience is important when you’re traveling, which is why many of you take your credit cards with you to shop abroad.
But then you return home—and receive a serious sticker shock. A lot of additional charges have shown up on your credit card statement.
So what happened? It’s called the dreaded foreign transaction fee.
Credit card foreign transaction fees are insidious and expensive. They can often reach three percent of every single purchase you make abroad.
A restaurant, hotel, cab ride, or souvenir—you name it. Plus, ATM fees can easily hit $8 per transaction. It’s not unusual to see additional charges exceeding a few hundred dollars every time you travel abroad.
So how can you avoid these fees?
It all depends on the credit card you use. Before you ever leave home, check with your bank or financial institution to find out if your card includes foreign transaction fees.
By the way, that also applies to your ATM card. So pick the card that doesn’t charge those fees, and you’ll be pleasantly surprised about how much money you’ll save.
For more information about money and traveling with credit cards, check out:
- More Credit Cards Remove Foreign Transaction Fees
- 5 Items That Should Be On Your Checklist for International Travel
- The U.S. Dollar is Still Strong Worldwide
Keep reading for more travel tips.
