Why did I get charged an international fee?

Understanding International Transaction Fees on Credit Cards

Unexpected charges on your credit card statement can be alarming, and international fees are a common culprit. These fees arise when you use your card to make purchases or withdraw cash outside of your home country.

Causes of International Fees

Two primary factors can lead to international fees:

• Transaction Processing Fees: When you use your card in a foreign country, the bank or credit card company may charge a fee for processing the transaction. This is typically a flat fee or a percentage of the transaction amount.

• Currency Conversion Fees: When you make a purchase in a currency different from your home currency, the card issuer must convert the transaction amount into your home currency. This often incurs a fee, which varies based on the exchange rate and the bank’s policies.

Identifying International Fees

To determine if you’ve been charged international fees, carefully review your credit card statement. Look for any transactions made outside of your home country and check for the following charges:

• Foreign Transaction Fee
• Currency Conversion Fee
• International Service Charge

Mitigating International Fees

If you frequently travel internationally, there are steps you can take to minimize these fees:

• Get a Card with No Foreign Transaction Fees: Some credit cards offer perks that waive or reduce foreign transaction fees.
• Use Local Currency When Possible: Avoid using your credit card for transactions in foreign currencies. Instead, withdraw cash locally and use that to pay for purchases.
• Notify Your Card Issuer: Inform your card issuer about your travel plans. This will help them flag your transactions as domestic rather than international.

Conclusion

International transaction fees can add unnecessary expenses to your credit card bill. By understanding the causes of these fees and taking steps to mitigate them, you can save money and avoid surprises when you use your card abroad. Always review your credit card statement closely to identify any unexpected charges and contact your issuer if you have any questions.