When travelers use credit cards in other countries, they are generally charged a foreign transaction fee. This covers the extra costs of transferring money from a U.S. credit card company to the business in the other country, including the exchange fee. Many different credit card companies are now dropping this fee.
According to a 2016 study by CreditCards.com, only 61 out of 100 different credit card companies now charge a foreign transaction fee. That number represents a decrease from 2015 when 77 card companies charged a fee. Many companies have eliminated the fees because travelers are spending more while traveling.
Consumers due to travel abroad may wish to contact their credit card company to learn what international fees they charge. They also need to make certain that their card company knows they will be traveling internationally. Many credit card issuers flag charges made in another country if the consumer hasn’t let them know that they will be traveling, and may assume that the card has been stolen.
Credit card companies who have dropped foreign transaction fees on some of their cards include American Express, MasterCard, Visa, and the Navy Federal Credit Union. However, not all cards issued by these companies have lost their transaction fees. If you will be traveling soon, take a look at our comparison of the four best travel and airline credit cards.
As well as changing the international transaction fees, may companies have also dropped other fees such as those charged for printing past statements.
If you want more credit, check out MoneyTips’ list of credit card offers.