Foreign transaction fees are charges commonly added to your credit card statement when you make a purchase in another country. Card issuers say these fees are in place to account for the currency exchange from one country to another, but speculation always exists about where this money really goes. Most foreign transaction fees usually range from 2% to 3% and are billed per transaction. Even if you aren’t traveling, it is possible that a purchase you make with a foreign merchant may also incur a foreign transaction fee.
It is wise to monitor your credit card statements on a regular basis to watch for fraudulent purchases or incorrect charges. When you first see a foreign transaction fee you might be a little confused or alarmed. These fees are very common with most credit card issuers, including American Express, Bank of America, Chase, Citibank, HSBC, Wells Fargo, and Discover Card.
However, one credit card issuer in particular does not charge foreign transaction fees. If you are planning to do a fair amount of traveling abroad, you might want to consider a credit card from Capital One(R), which offers a wide variety of credit cards – including secured and unsecured cards, rewards cards, and more – that do not charge a foreign transaction fee when you make purchases abroad. You can save a lot of money in foreign fees over the term of your credit card use with a card that eliminates these fees.