Use Credit Cards With No Exchange Rate Fees

Credit Cards with No Exchange Rate Fees

For most individuals who travel out of the country most of the time, credit cards with no exchange rate fees are very essential. Hidden charges in credit card bills are not unusual for most of you. It is a mere fact that once you fully understand how foreign exchange rate works, it’s easy to detect these charges. Although, exchange rate fees seem low at first glance, auditing it will yield into a different result. It is just right to ask, how can one avoid these fees?

Understanding and detecting foreign exchange fees

Using credit cards abroad would automatically cost you an additional 1 to 3% percent transaction fees. These are taken from every overseas bill you charge to your credit cards. Surprised? Well, technically these details are not presented in your credit card bills. It will only be marked as surcharges without any breakdown for it. Even though, foreign exchange fees are legal. You can find it stated in the terms and conditions issued by your card provider. However, not all banks or credit card companies apply these rule. There are still some who prefer customer satisfaction before anything else.

To further expound foreign exchange fees, there are two components involved when it comes to these fees. First is the 1% fee. These are charged by the card network known as Visa or MasterCard. Normally, the card issuers are the ones obliged to pay this. However, they passed it on to the creditor instead. The second part is charged by the card issuer. These charges are commonly known as transaction fees. Some may charge 1% while others impose 2%.

Most of you think that there is nothing you can do about these charges. Unfortunately, these charges are legit and non-refundable. Nonetheless, awareness is better than nothing. You may start re-reading your agreement forms to know if your credit card applies currency exchange rates. You may also inquire at your banks or credit companies’ customer service that would normally take almost 30 minutes of endless queries. For future references, one can avoid these kinds of fees by shifting to card providers that offer credit cards with no exchange rate fees. This is the only option you can take especially when you are a frequent out of the country traveler.

Credit cards that doesn’t charge exchange rate fees

As mentioned earlier, there are still some credit card issuers that don’t add exchange rate fees. You might want to check them out to save more money. First is the Capital One® credit card. This is one of the major card issuer that pays the 1 % card network fee for their customers. You can either apply for a Visa or MasterCard without worrying about international fees when travelling abroad. Other recommended international credit card issuers are Chase Sapphire Preferred? Card and Platinum Card®. For more information about credit card fees, you can check the website CardRatings.com and find out which credit cards are known to apply foreign exchange fee.

With all that, travelling around the world may not be very expensive after all. Finding the right credit card with no exchange rate fees is the key to save more and avoid foreign transaction fees.