Why Am I Getting International Purchase Transaction Fee and What to Do About It

You're getting hit with an international purchase transaction fee, and you're wondering why. The truth is, many credit card companies and banks charge these fees to cover the costs of processing cross-border transactions.

These fees can range from 1% to 3% of the transaction amount, and they're usually charged by the bank or credit card issuer.

You might be thinking, "But I'm not even traveling abroad, so why am I getting this fee?" The reason is that your credit card company is still processing the transaction as an international transaction, even if you're buying something from a US-based website.

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Fees can sneak up on you, especially when making international purchases.

A foreign transaction fee is one of the most common types of fees you could face.

These fees are assessed by your credit card issuer and tend to be charged as a percentage of the purchase.

The percentage is usually around 3%, which might not seem like much, but the charges can add up.

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For example, if you charge $5,000 on a card that carries a 3% foreign transaction fee, you’ll have to pay an extra $150.

You could get hit with a foreign transaction fee even if you’re not physically using your card overseas.

These fees apply whenever you make a purchase with your card from a non-U.S. retailer, so if you buy an item online from a company based in another country, you could be charged the fee.

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International transaction fees can be a sneaky surprise when making purchases abroad. These fees are typically charged by your credit card issuer and can range from 1% to 3% of the transaction amount.

Some credit card networks, like Visa and MasterCard, charge a 1% fee, while American Express charges a whopping 2.7% fee. Discover, on the other hand, doesn't charge any foreign transaction fee.

If you're using a credit card with a foreign transaction fee, you're essentially paying a markup on your purchase. To avoid this, consider using digital payment solutions like digital wallets or multi-currency accounts, which often offer more competitive exchange rates and lower fees.

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Here's a breakdown of the two parts that make up a credit card foreign transaction fee:

Keep in mind that some credit cards, like travel cards, often waive the foreign transaction fee.

You can avoid international purchase transaction fees by using the right credit card. Many popular travel credit cards like the Chase Sapphire Preferred Card, Bank of America Travel Rewards credit card, and the Capital One Venture Rewards Credit Card give cardholders the ability to use their cards abroad and pay no international transaction fees.

Using a debit card abroad can be expensive, with foreign ATM fees as high as $10, including the bank's fee. To avoid this, consider exchanging currency before traveling or using a credit card with no foreign transaction fees.

Some credit cards, like the Delta SkyMiles Blue American Express Card, don't charge foreign transaction fees and have a $0 annual fee. You can also consider opening a bank account with no foreign transaction fees, like Charles Schwab, and using their debit card overseas.

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If your bank has a foreign partner in the country you're traveling to, you might be able to do business with them and avoid fees. However, it's essential to ask your bank about their foreign partners before traveling.

Here are some credit cards that offer no foreign transaction fees:

Keep in mind that even if you use a credit card with no foreign transaction fees, you may still be charged a card network fee, which can range from 1% to 2.7% of the transaction cost, depending on the card network and issuer.

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Using cash while traveling can be a hassle, especially when exchanging it for local currency. Most people who've traveled abroad know how costly it can be to exchange their cash for the local currency.

Carrying a wad of cash around can also be risky, especially because pickpocketing can be an unfortunate but common occurrence while traveling. You'll usually have to pay up in order to get your cash, whether you go to an airport kiosk or an international ATM.

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Some banks and online institutions have low foreign transaction fees or none at all, or will even reimburse you for fees charged by other banks when you use foreign ATMs. Check with your local bank, as some have partnerships with banks in other countries so travelers can use their ATMs and not have to pay out-of-network fees.

Here are some examples of foreign transaction fees for different credit card networks:

The card issuer fee is usually an additional 1% to 2% in fees on top of the network fee. This means that the foreign transaction fee is between 1% and 3% of the transaction in U.S. dollars, depending on your credit card issuer and payment processing network.

When traveling internationally, using a credit card can be a convenient option, but it's essential to be aware of the potential fees and take steps to minimize them.

To start, notify your card issuer of your travel plans, so they don't flag your transactions as suspicious. This will also help you understand your card benefits and emergency services.

Always pay in local currency to avoid being charged a higher exchange rate by your card issuer. Keep receipts and monitor your transactions to catch any suspicious activity.

It's also a good idea to have backup payment methods, such as cash or another credit card, in case your primary card is lost, stolen, or declined.

Here are some key tips to keep in mind when using your credit card abroad:

Foreign transaction fees can add up quickly, so it's essential to understand how they work. Typically, these fees are charged at the end of your monthly billing cycle and can range from 1-3% of the transaction amount.

To keep your credit card costs low while traveling abroad, consider choosing a card that doesn't charge foreign transaction fees. Discover and Capital One are two card issuers that have removed this fee from all their credit cards.

You can also opt for travel cards that lack the fee. Both Visa and Mastercard offer some cards without a foreign transaction fee, and American Express has cards with lower fees.

To find out if your credit card charges a foreign transaction fee, read through the credit card disclosure or check your credit card issuer's website. You can also call your credit card issuer to learn the details.

Here are some popular credit card issuers that don't charge foreign transaction fees:

By choosing the right credit card, you can minimize your overseas trip costs and enjoy your travels without breaking the bank.

If you're a small business owner, you might be charged foreign transaction fees on international purchases made through a virtual terminal or card reader.

These fees can range from 1% to 3% of the total purchase amount, and they're often assessed by banks to cover the cost of converting U.S. dollars into the currency of the country where the purchase was made.

For business owners, a business credit card that doesn't charge foreign transaction fees can be a great way to avoid these unexpected fees.

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As an online buyer, you might be charged a foreign transaction fee by your bank, which can be a surprise when you see it on your statement.

If you're a subscription box company that sources products from outside the U.S., you might need to adjust your business practices to account for these fees.

Here are some common scenarios where foreign transaction fees might be assessed:

As a business owner, you're likely no stranger to navigating the world of credit card processing fees. But did you know that foreign transaction fees can be a major headache for businesses that operate across borders? These fees can lead to unexpected credit card processing fees, even when a purchase is completed through a virtual terminal instead of a card reader.

For businesses that accept credit card payments, foreign transaction fees can be a significant issue. Depending on the nature of your business and how you accept credit card payments, you might need to make adjustments for foreign transaction fees. This isn't just about updating your invoice software or policies, but also about how you do business.

A business credit card that doesn’t charge foreign transaction fees is a great way to start safeguarding your company. This can be especially important for businesses that source products from overseas, like a subscription box company.

Here are some key things to keep in mind when it comes to foreign transaction fees:

It's worth noting that not all businesses are affected equally by foreign transaction fees. A local barbershop, for example, may not have to worry about these fees as much as a subscription box company that sources products from overseas.

Many of us make purchases online, often from companies outside of the United States.

Some of these purchases come with a "foreign transaction fee" charged by our bank, which can range from 1% to 3% of the total purchase amount.

These fees are purportedly used to cover the cost of converting U.S. dollars into the currency of the country where we are making the purchase.

Many of these fees are improper or being illegally assessed, which can result in monetary damages for consumers.

We represent individual consumers who have experienced monetary damages as a result of improper foreign transaction fees.

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