I see many credit cards advertised as having no... - Travel with Credit Cards Questions


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Credit Card Applications » Questions » User Questions » Travel with Credit Cards » I see many credit cards advertised as having no foreign transaction fee. What does this...

I see many credit cards advertised as having no foreign transaction fee. What does this mean? Is it important for me to have a card like this?

Answered on | Updated on October 25th, 2016
The content is accurate at the time of publication and is subject to change.

A foreign transaction fee is what the credit card processing network charges every time you make a purchase in another country. Usually this fee is 2-3% of your purchase. However, many cards are no longer charging this fee – particularly travel credit cards. If you’re a frequent overseas traveler (or even if you hop over the border to Canada or Mexico on a regular basis) you’ll definitely want to make sure you have a card with no foreign transaction fees. Another thing to look for in a travel card is that it has an EMV chip. This means you insert or tap the card rather than swiping the magnetic strip. Europe, Asia, and Canada all adopted this system before the United States did, so many people in the US are not used to this system and don’t have chip cards yet. Be sure your travel card has a chip! If you have a shopping credit card, we should warn you that they may not be used abroad. But some cards like REI MasterCard can as they are maintained by international network.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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