One of the ways to make an international payment is to use a credit card. Credit cards are most widely accepted methods of payment globally and a Mastercard international credit or debit card is one of the examples. Mastercard credit cards can be used anywhere around the world.
When you use a Mastercard credit card abroad, you can be charged a foreign transaction fee. Mastercard has its own Mastercard currency conversion rate but it does not mean your bank or credit card issuer will use Mastercard foreign exchange rates to bill you for a foreign currency transaction. The overall foreign transaction fee can be composed of two fees: one from Mastercard (payment network) and one from card’s issuing bank. Mastercard typically charges 1 percent fee for each foreign transaction and bank can add 1 or 2 percent fee, which makes a 2-3% foreign transaction fee. However, many issuers charge no foreign transaction fee nowadays, and do not pass the payment network’s fee on to cardholders, which means you pay $0 for a purchase in a foreign currency. If you look around, you will definitely spot one or two Mastercard credit cards with no foreign transaction fees.
Other international Mastercard fees you should be aware of when traveling abroad are ATM fees. While it is not recommended to use a credit card to withdraw cash, a need may occur. Banks charge a flat fee for cash advances of $1-$5 for using an ATM network in another country, plus a percentage of the amount you withdraw.