Credit Card Charges When Going Abroad

Be wary of credit card use when traveling abroad.

When travelers go abroad, they often overlook the higher credit card fees and interest rates that are applied to international charges. While at home, people are used to paying for items with a credit card or debit card, but when traveling abroad the additional fees may make the use of the card less desirable.

Interest Rates

International credit card interest rates often go up, with many credit card companies charging an additional 2 percent fee on the amount charged. This interest rate is in addition to the yearly rate you currently pay.

Processing Fees

Both MasterCard and Visa charge an additional 1 percent processing fee for international transactions. This is a fee added onto any additional interest rate your particular card company charges.

Foreign ATM Charges

Many foreign ATMs charge between $1 and $3 additional ATM fees and the credit card company can charge an additional international ATM fee for using a foreign ATM. Often, the total of these ATM fees can be as high as $5 to $10.

Conversion Rates

Other hidden fees may occur when you purchase your items with your credit card and the currency is converted into dollars. In these cases, credit card charges get the worst possible conversion rate around.

References

• Forbes: Credit Card Overseas