Have you ever traveled internationally and used your credit card? If you have, then you may have noticed increased charges on your statement. This is because most credit card companies charge a fee of up to 3 percent per purchase when you use your card overseas. Read the information below to learn which credit cards are the best to use overseas.
The Foreign Currency Transaction Fee is really separated into two parts. The first part is the part in which Visa or MasterCard impose a 1 percent fee on any purchase you make in to convert international money into U.S. dollars. This fee is pushed to your card issuer and the card issuer usually passes this charge onto you. The second part of the fee is on behalf of the card issuer, who may charge up to another 2 percent to you.
Traditionally, one of the best credit cards to have, in terms of fees charged, is a Capital One card. Using either Capital One's Visa or MasterCard, you will be charged no foreign transaction fees. Possibly to entice customers, Capital One waives this fee and also does not pass the Visa or MasterCard charges onto its customers.
Also another, lesser-known card, that does not charge any foreign fees is Schwab Bank Invest First Visa with 2 percent cashback on purchases. The card, does not carry the Foreign Currency Transaction Fee either.
Besides these two cards, I am listing below several other popular companies and their current rates.
American Express - 2% Discover - 2% Bank of American - 3% CitiBank - 3% Chase - 3%
It is always a good idea to verify with your credit card company prior to going overseas to ensure you completely understand the charges you will receive. Be totally sure you understand the charges as the issuer will often try to hide what exactly they mean when talking to them.