Buying something in a foreign land may cost you some big bucks. If you make payment through your standard credit card then you will be charged with foreign transaction fees that adds around 2% to 3% on the cost of purchases. Experts suggest not to pay through your credit card when on your travels and holidays. The best solution for this is to carry cash but that is a risky affair and so, one should choose credit cards with no foreign transaction fees.
Foreign transaction fees is applied when you buy anything in an abroad nation. It holds true even when you make online shopping in a foreign currency. The fees are a combination of charges imposed by credit card networks as well as credit card issuers. If you keep spending then the fees will accumulate resulting in a big fat bill that contains not just the purchases but also the transaction fees. If you buy ten times then you can easily expect 20% to 30% extra on the bill.
One of the easiest way to skip foreign transaction fees is to buy a no foreign transaction fee credit card. These cards do not charge transaction fees applicable on most debit or credit cards. Instead they convert the foreign currency into local currency based on the card network’s exchange rates at that time. So, you can also keep a track of the spending as money paid will be in the local currency only.
The catch with no transaction fees credit cards:
The catch here is that currency exchange is done by a third party and so, it may cost a little. But, experts suggest that you are still at the profitable end.
Another more important thing is that with these cards you save on the purchases but will ending paying high interest if you make cash withdrawals while abroad. Most credit card companies charge cash withdrawal fees but that can be waived off. However, you will have to pay for the high interest charged on withdrawals.
Dynamic currency conversion fees are the charge you pay to the merchants for selling the item into your currency and not theirs. The good thing is that with this feature you can understand the exact amount spent but the exchange rate will be decided by the merchant or their credit card processor. This rate is generally higher than what you expect.
To sum up, the no transaction fees credit cards are best for foreign travels. No need to use them apart from that reason, as they are not good to you when used locally. Keep them safe with you and use them for your next holiday. Till then your standard credit card will work best when used locally. To shop for the best no transaction fees credit cards, just check freepricecompare.com. You can also call us on 02034757476.