Understanding International Credit Card Charges
By Alisdair Cosgrove
When you use a U.S. credit car abroad most card companies charge a two to three percent foreign transaction fee. Many credit card companies did not clearly disclose these fees in their terms and conditions until this recent time.
There were many people who received notification of a class action lawsuit settlement earlier this year in regard to these fees.As the lawsuit has now been settled credit card companies are required to state in very clear terms what their foreign and international transaction fees are.
If you do not know how much your current credit card company charges for international transactions, contact customer service to find out most will inform you that the fee is three percent. With the US dollar sagging, paying an extra three percent on every purchase can really hurt the wallet, but fortunately, there are a few ways to avoid these charges.
Foreign currency exchange rates from your bank can be somewhat better than what you will get at a foreign currency exchange booth.
When a debit card is used as a credit card, there may be some risks, but ATM withdrawals are free of foreign transaction charges as a general rule. A credit card provides much better fraud protection than a debit card; for this reason using a debit card abroad to make purchases can be risky.
If an unscrupulous merchant overcharged or fraudulently used your credit card, you can easily contest the charges and get a refund. If your debit card was used fraudulently , you will not only be faced with an empty bank account, but you will find that it takes longer to receive any type of refund.
Ultimately, the only way to pay no international transaction fees is to use a credit card which doesn't charge these fees, and with these no fee credit cards you get the security a credit card provides without the annoying added expenses.
It pays to know how much you'll spend; this is great for day-to-day life but it's even more important on vacation, ATM transactions carry a small fee...for each transaction. Very few people have a very good idea how much cash they'll require while traveling and unless you're the exception and have a fairly precise budget it's difficult to extract the correct amount in a single transaction. Sometimes it is hard to find a cash machine in many countries, so you have to be careful to not withdraw too large an amount to keep from being robbed. You will find that you have to pay a fee to convert funds back to your local currency as well as the fees that were paid to convert to foreign currency.
You can use the safe alternative of traveler’s checks instead of cash, but there is a fee charged when they are purchased and they are not accepted everywhere.
If you are applying to get a credit card that will not charge you additional fees for foreign purchases, be sure youunderstand the terms and conditions of the credit card policy to be sure you are getting the card you think you are. Check the terms before using the card and be sure you can pay off the balance quickly if it has a high interest rate...or you're simply paying fees a different way.
About the author
Alisdair Cosgrove has been writing finance articles for many years and can find more of his work at the UK site CreditCardsWeb.co.uk, offering credit card deals for UK residents and also a great selection of balance transfers. Visit today to read more of Alisdair's great credit card articles including best credit card for you. from http://www.FreeArticlesAndContent.com
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