International Travelers: Check your Credit Cards!
Most people who travel abroad (especially those who do so frequently) are aware that most credit companies charge what's known as a foreign transaction fee - a standard fee (usually between 2 and 4 percent of the total cost) tacked onto to purchases made in a foreign currency. However, some credit card companies are getting creative when it comes to such fees; international travelers may now be charged a foreign transaction fee even when purchases are made in U.S. dollars.
Typically, travelers abroad only incur fees when a purchase is made in foreign currency. But now issuers are charging that fee even if you are making purchases in U.S. dollars outside of the country (some places, such as the Caribbean, often gives tourists the option of paying in U.S dollars or in local currency). It seems many issuers are now adding those fees no matter what currency the purchase was made in, just as long as it was made on foreign soil.
If are planning on traveling outside of the country in the near future, contact your credit card issuer and get the details regarding such fees. Ask whether they charge foreign transaction fees when international credit card purchases are made in a foreign currency or simply if the purchase is made in a different country. Doing so will ensure you aren't surprised when you receive a staggering bill in the mail that adds an extra 4% fee on to every foreign transaction you made while traveling abroad.
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Amazing article! I definitely enjoyed reading it, and learned quite a bit...I will refer it to anybody that is curious about the subject matter.
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