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Credit Cards Can Be Charged International Fees

By Expert Author: Alisdair Cosgrove | Article Abstract
Word Count: 573 words | Views: 154 view(s)
Almost all credit card companies in America, will charge a two to three percent foreign transaction fee when your card is used on an international basis.

Only lately, have most credit card companies clearly disclosed the foreign fees in their terms and conditions. Consequently, because of this, many people received notice of a class action lawsuit settlement concerning these fees early last year. Credit card companies must clearly inform their applicants of all international transaction charges, because the lawsuit has now been settled.

If you do not know how much your current credit card company charges for international transactions, the customer service representative will likely inform you that the fee is three percent. Paying an extra three percent on every purchase can really cause the costs to add up quickly, but fortunately, there are a few ways to avoid these charges.

The foreign currency rate you can receive from your bank is often significantly better than what you would get at a foreign currency exchange booth.

When a debit card is used as a credit card, there could be some risks to it, but ATM withdrawals are free of foreign transaction charges as a general rule. A credit card is easier to protect from fraud than a debit card when making purchases abroad, so this is why it would be better to use a credit card at these times.

If an unscrupulous merchant overcharged you or used your credit card in a fraudulent manner, you can easily contest the charges and receive a refund on your credit card account. If your debit card has been 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 avoid paying international transaction fees, is to use a credit card which doesn't charge these fees; these no fee credit cards give you the security a credit card provides, without the annoying added expenses.

ATM transactions charge a small fee each time, so you can know how much you are spending; this is as great for day to day life as it is when you are on vacation. Unless you are on a very exacting budget, it is difficult to judge how much to withdraw in one ATM transaction; most people cannot tell precisely how much cash they will need while traveling. It can also be difficult to find a cash machine in many countries, but you have to be careful to not withdraw an excessive amount of cash, so you will not put yourself at risk for theft.

The conversion of funds back to your own local currency carries fees as well as what you will have already paid to convert to the foreign currency.

You can use the safe alternative of traveler’s checks instead of cash, while there is a fee charged when they are purchased and they are not accepted everywhere, they are replaceable if lost or stolen.

Make sure you know what the terms and conditions are on a credit card you have applied for, if you had been under the impression that it charges no additional fees for foreign purchases. Before you use the card, check the terms of it to be sure you can pay the balance off fast, if the interest rate is high, so you won’t be paying extra fees in another way.
Alisdair Cosgrove

About the Author/Author Bio

Alisdair Cosgrove is a freelance writer specializing in personal finance. You can read more of his work at www.JSNet.org for best credit cards and also offers a comprehensive list of secured credit cards.

Article Source: http://www.ga.articlesphere.com/Article/Credit-Cards-Can-Be-Charged-International-Fees/186061

Article Submitted: 2009-05-14 | This Article has been viewed 154 times.
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