credit card no international transaction fee

This avoids the complications and fluctuations that can come from converting different foreign currencies using different agencies and institutions. It sets a single, flat fee consumers pay on purchase activity involving currency conversions. The alternative, widely employed by credit card companies, is a foreign transaction fee. It’s paid to the agency or organization that is facilitating the conversion. Typical cross-border transactions involve a conversion fee, which is the cost to convert one currency into another. Here’s why: Whenever one currency is converted into another, there are costs. This can even happen when you’re making online purchases from an individual or a business located in a foreign country. If the transaction takes place in a country or financial institution that normally uses a currency other than dollars, fees will be involved.

When a transaction involves a foreign bank.When you make purchases in a foreign currency.How do foreign transaction fees work?įoreign transaction fees can be incurred primarily in one of two situations: First, a little more about the fees themselves. Still, just because many credit cards charge foreign transaction fees doesn’t mean you have to pay them. There are fees associated with that transaction. dollars need to be converted to the local currency. Here’s why: When you make a purchase in a foreign country, U.S. When you travel to a foreign country and charge expenditures in a currency other than dollars, it’s likely your credit card will charge you a foreign transaction fee.

Credit card no international transaction fee