Everything you need to know about credit cards with no foreign transaction fee
Are you planning to travel to a foreign country? Whether you are planning to travel abroad for a holiday or for your work, you need to take care of various things to make your journey and stay hassle-free. For instance, you should have your visa, travel permits, and passport in order. You should also consider the financial aspects, such as converted currency and traveler’s checks. However, traveler’s checks are slowly becoming redundant due to the prevalent use of plastic payment cards such as debit card and credit cards. Apart from convenience, these cards are also more secure compared to cash and checks that can be stolen or lost. With debit cards and credit cards, you can easily cancel the card with one call to the customer service center. Although using credit cards is simpler and safer, they can cost a lot if you use your national credit cards. This is because when you use your credit card or debit card in any foreign country, a foreign transaction fee will be charged whenever you swipe your card. To avoid additional charges, you can opt for credit cards with no transaction fees.
Read on to know more about getting a credit card with no foreign transaction fee.
What is a foreign transaction fee?
- Foreign transaction fees are added to charges added to any transaction that occurs in a foreign country.
- Even if you book a ticket through a website that is not based in your home country, you may be charged with foreign transaction fees if you use your credit card for the transaction.
- This foreign transaction fee can be as high as 3% on each transaction.
- So, if you are making any big purchases or even booking rooms through your credit card, you might end up with a huge credit debt at the end of your due date.
When should you apply for a credit card with no foreign transaction fee?
- If you frequently travel to foreign countries.
- If you are going on a holiday abroad.
- If you frequently purchase goods from foreign-based retailers or merchants.
- If you often buy from online retailers not based in your home country.
Are foreign transaction fees involved while using debit cards abroad?
- Yes, you will be levied foreign transaction fees when you use your debit cards in a foreign country.
- The foreign transaction fee is also called currency conversion fee. It is usually between $1 and $5.
- Also, if you use your debit card to withdraw cash from an ATM, you will be charged an international ATM fee along with additional charges.
Which are the popular credit cards with no foreign transaction fee?
- Capital One Venture Rewards Credit Card
- Chase Sapphire Preferred Card
- Bank of America Travel Rewards Credit Card
- Barclaycard Arrival Plus World Elite MasterCard
- TRIO Credit Card from Fifth Third Bank
- Cashback Rewards Plus American Express Card
- Discover it Miles
- PenFed Premium Travel Rewards American Express Card
How to apply for a credit card with no foreign transaction fee?
- First, you select a credit card with no foreign transaction fee that gives you the maximum benefits suitable for your requirements
- You can then apply online through the card company’s website by providing your personal information, mailing address, mention your credit score, mention your source of income, your annual income, credit history, and so on.
- You will go through certain verification checks similar to those required while applying for any regular credit card.
- Once all the processes are completed, you will receive your credit card.