Credit Card Fees Are Avoidable

By Author: Alisdair Cosgrove
Total Articles: 184
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Nearly all credit card companies in the USA, except one, will charge a two to three percent foreign transaction fee if your card is used abroad. Before this particular time many credit card companies did not clearly explain these fees in their terms and conditions.

Many people received a notice of a class action lawsuit settlement regarding these fees earlier this year.Credit card companies are required to clearly state foreign and international transaction charges on credit card applications, since the lawsuit has been settled.

If you want to know how much your credit card company charges for international transactions you should contact the customer service and you will probably be told that the fee is three percent. It can be very expensive on the purse to pay an extra three percent on every purchase, but these charges can be avoided.

Your own bank will often give a significantly better exchange rate for foreign currency than what you may receive at a foreign currency exchange booth.

When a debit card is used as a credit card, there may be some risks, but ATM withdrawals are free of ...
... foreign transaction charges as a general rule. A debit card will be easier to use fraudulently when making purchase abroad than a credit card, so this can be the best reason to use a credit card there.

When there are fraudulent charges and overcharges made on your credit card you can contest them a receive a refund. If your debit card was used fraudulently , you will not only be faced with an empty bank account, but you will find that it takes longer to receive any type of refund.

The only way to pay no international transaction fees seems to be to use a credit card that does not charge these fees and with these no fee credit cards you get the security provided by a credit card without added expenses.

ATM transactions carry a small fee for each transaction, so it is good to know how much you will spend, this is as great for day to day life and also when on vacation. Few people can tell exactly how much cash they will require while traveling , so unless you have a very precise budget it can be difficult to withdraw the correct amount in one single transaction. Sometimes it is hard to find a cash machine in many countries, so you have to be careful to not withdraw too large an amount to keep from being robbed. You have to pay fees to convert to foreign currency and then you also have to pay fees to convert back to your local currency.

You can use the safe alternative of traveler's checks instead of cash, but there is a fee charged when they are purchased and they are not accepted everywhere.

When applying for the credit card you believe will not charge any additional fees for foreign purchases be sure you study the terms and conditions carefully to be absolutely sure you are getting the right card. Check the terms before using the card and be sure you can pay off the balance quickly if it has a high interest rate...or you're simply paying fees a different way.
Alisdair Cosgrove has been writing finance articles for many years and can find more of his work at the UK site CreditCardsWeb.co.uk, offering long term low rate credit cards for UK residents and also a great selection of 0% purchase credit cards. Visit today to read more of Alisdair's great credit card articles including getting more from rewards.