Finding a credit card that does not charge foreign transaction fees is one of the options for credit card consumers when it comes to travel outside of their country.
Smart tips to avoid foreign transaction fees with your credit card
- Read the fine print. The easiest way not to incur foreign transaction fees is to only apply for cards that don't assess them. Foreign transaction fees are the norm, so finding a card that does not assess them will require work and research on the credit card consumers part. There are credit cards out there that absorb the fee for currency conversion so that their consumers can travel with the peace of mind knowing there won't be additional fees tacked on for currency conversion. It is the responsibility of the consumer to read the fine print and use the cards that do not carry the foreign transaction fees and penalties for being used online.
- Pay in cash. The easiest and ideal way for the credit card consumer to avoid the foreign transactions fees is to use cash. This means that the credit card consumer must not use their credit card the entire time while in a foreign country. This does forfeit the convenience of credit cards and does present some risks, should the consumer flash their cash or make it know that they are carrying large amounts of cash. Also if a consumer loses all of their cash, there is no way for compensation.
- Consider using travellers cheques. Another options for consumers who wish to travel abroad and avoid foreign transactions fees and would rather not travel with all of their cash is to buy travellers cheques. Travellers cheques replace carrying cash but spends the same way. Travellers cheques protect against theft and loss and can easily be replaced usually in 24 hours, providing protection that the credit card consumer would be trapped in a foreign country with no available funds. In this way, travellers cheques allows the credit card consumer to travel around the world without fear of incurring multiple foreign transactions fees and fear of theft or loss.
- Use a fee free debit card. Debit cards work similar to a credit card, except you are using your own hard earned money, not a line of credit. You can use features available on a Visa or Mastercard such as using them online for credit purchases or overseas. The majority of debit cards come without any fees attached the account. Another benefit is that you don't attract interest that is accrued with credit cards when you make a purchase.
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