Do credit cards charge fees for international transactions?

Credit Card Fees for International Transactions

International purchases made with credit cards often incur additional costs beyond the transaction amount. These fees are charged by both card networks (e.g., Visa, Mastercard) and individual card issuers (e.g., banks, credit unions).

Foreign Transaction Fees

The most common fee associated with international transactions is the foreign transaction fee (FTF). This fee typically ranges from 1.5% to 3% of the transaction value. It is charged by the card network and is applied to any purchase made in a currency other than the card’s home currency.

For example, if you have a US-issued credit card and make a purchase in Europe for €100, you may be charged an FTF of 3%. This would result in an additional charge of €3 on your credit card statement.

Issuer Fees

In addition to FTFs, some card issuers may also charge additional fees for international transactions. These fees can vary depending on the issuer, but typically range from $1 to $5 per transaction.

For example, your credit card issuer may charge a flat fee of $3 for all international purchases. This fee would be added to the FTF charged by the card network.

How to Avoid International Transaction Fees

There are a few ways to avoid international transaction fees:

• Use a credit card with no FTFs. Some credit cards, such as the Capital One Venture X Rewards Credit Card, do not charge FTFs.
• Use a debit card. Debit cards typically do not charge FTFs, but they may charge ATM withdrawal fees.
• Use cash. If you are traveling to a country where credit cards are not widely accepted, it may be better to use cash.

Conclusion

International credit card transactions can incur additional fees, including FTFs and issuer fees. It is important to compare different card offerings before traveling abroad to find a card that best suits your needs and minimizes these fees.