People like spending each time they embark on a travel and it’s always fun. Also, learning How to Avoid Foreign Transaction Fee while traveling is a necessity. Getting to purchase all that you had longed for makes it more exciting.
For instance, if you can save on a foreign transaction fee, you may have saved nothing less than 1 to 3% on your international trips. Here are a few ways of skipping foreign transaction fees and international ATM fees.
How to Avoid Foreign Transaction Fee
When on your trip, you might get stuck with a foreign transaction fee for using your debit card. These fees can add up so fast, especially, if you travel abroad regularly. Then, there is a need to open an account with a bank that does not penalize nor charge on spending or making cash withdrawals overseas.
Foreign Transaction Fee
A foreign transaction fee (FTF) is a surcharge credit card holder is expected to pay for transactions processed outside of the U.S. They can be bought when you make it while traveling abroad or from a merchant based overseas.
Foreign Transaction fees might be added to credit cards when you make use of a Purchase or cash advance outside the U.S or you make use of a card to purchase products or services in a foreign currency.
Sometimes, the fee goes by a different name, which includes the Foreign Purchase transaction fee or foreign currency conversion fee.
Debit Card International Fees
A Debit Card International Fee is sometimes called a currency conversion fee that applies to foreign transactions made with a debit card. this usually ranges from about 1% to 3% of the purchase amount. you can pretty much say it is also called a Foreign Transaction Fee.
Banks With No Foreign Transaction Fees
Here I would be stating some Banks with No Foreign Transaction Fees. so in case, you would be making international travels, then you should check out one of these banks.
- American Express: certain credit cards.
- Bank of America: certain credit cards.
- Barclays: certain credit cards.
- Capital One: all credit cards, certain debit cards, and certain ATM transactions.
- Charles Schwab Bank: certain debit cards, certain ATM transactions.
- Chase: certain credit cards.
Avoiding Foreign Transaction Fees
Below I will be giving you some great steps to take to Avoid Foreign Transaction Fees. Trust me you would be needing these steps if you travel a lot.
Avoid using Foreign ATMs
Traveling with the cash you need for your trip is the best, to avoid paying additional charges like foreign transaction fees. If you know that your bank or credit union does not charge a fee for each transaction made outside of their ATM. With this in mind, it is better to get your cash ready for your trip or buy foreign currency before leaving town to avoid using any foreign ATM.
Get a card without a foreign Transaction Fee
If you do not like paying foreign transaction fees and do not want to get a credit card without charges when you’re abroad. A lot of credit card issuer offers these services, such as Chase, Capital One, and Discover among many others.
Credit cards that do not charge foreign transaction fees can save you a lot of money even if you’re not traveling. Before you apply for a credit card, you must think about it how it affects your credit score. If the merchant that processes your transaction is based abroad, You can be charged for foreign transaction fee while you’re shopping domestically.
Find out if your bank has a Foreign Partner
If you do not appreciate carrying cash, find out from your bank concerning Alliance ATM with any financial institutions in the country you’re traveling to. For example, if you banking with Bank of America, you won’t have to pay a fee for making a withdrawal from Deutsche Bank ATM in Germany and Spain.
Exchange Currency Before Traveling
Another easy way to avoid foreign transaction fees is by exchanging currency before leaving your country. Create a budget for your trip, estimate how much you need, and plan accordingly. Your bank or credit union may sell you foreign currency without you paying any additional fee. This is a good option to get access to foreign funds and get a decent exchange rate.