Foreign Transaction Fees Explained Flashcards
What are Foreign Transaction Fees?
A foreign transaction fee, or international transaction fee, is a 2-4% surcharge that roughly 90% of credit cards tack onto transactions processed outside of the United States.
How do you avoid Foreign Transaction Fees?
Make sure to have a no foreign transaction fee credit card or debit card.
Capital One and Discover have removed foreign transaction fees from all of their cards.
About 25% of available cards do not charge foreign transaction fees.
A credit card foreign transaction fee is generally the combination of _____ and _____?
Charges assessed by the card network (e.g. Mastercard, VISA)
A fee that your credit card issuer (e.g. Bank of America, Citi) charges on top
Foreign transaction fees are at the sole discretion of the _____, while the countries in which a card will be accepted depends on the _____?
Issuing Bank
Credit Card Network (i.e. Visa, Mastercard, Discover, Amex)
Can you be charged for a foreign transaction fee while still being on American soil?
Yes, anytime an online purchase is made through an overseas merchant you will be charged a foreign transaction fee.
What is Dynamic Currency Conversion and how does one circumvent it?
Dynamic Currency Conversion (DCC) is the practice of converting a credit card transaction from one currency to another. For instance, converting from Euros into U.S. dollars.
Use a No Foreign Fee Credit Card Use a Low or No Foreign Fee Debit Card Refuse DCC and pay in local currency Pay attention to receipts Pay attention to the wording of ATMs Announce Travel Plans
What does No Foreign Transaction Fee mean?
No foreign transaction fee means that a credit card or debit card does not include a surcharge for international purchases. In other words, a consumer won’t be charged extra for using the card outside of the U.S.
Which Credit Card Issuers do not charge Foreign Transaction Fees?
Capital One Discover HSBC PenFed Credit Union USAA
