If you are planning a trip outside the United States, it’s essential to know which of your credit cards charge what’s known as foreign transaction fees. I can think of a handful of cards that I use heavily in the US but that charge foreign transaction fees for use abroad. It’s important to assess before packing for an international trip and be sure to leave these cards at home.
What is a foreign transaction fee?
Well, it’s pretty much what it sounds like. It is a fee you’ll pay every time you swipe your card outside the United States. It is usually around 3% per transaction and will show up on your credit card bill as a separate line item like this:
As you can see, these fees add up quickly. Most people only check their statements once they get home from a trip. Speaking from experience, I can say that it is a real bummer to come home from a fabulous vacation and realize that you had inadvertently wasted hundreds of dollars on foreign transaction fees because you had been gallivanting around Italy, blissfully unaware that you had been swiping the wrong card.
What cards don’t charge a foreign transaction fee?
Here’s a list of my favorite travel cards that are safe to swipe outside the United States:
- American Express Gold
- American Express Platinum
- Bank of America Premium Rewards
- Capital One Venture Rewards
- Capital One Venture X
- Chase Sapphire Preferred
- Chase Sapphire Reserve
- Citi Premier
Conclusion
Before heading off on an international adventure, I always check my wallet and ditch any cards that charge foreign transaction fees. That extra 3% might not seem like much, but it adds up fast and can put a real damper on an otherwise fantastic trip. So, to avoid any unpleasant surprises when I get home, I pack only the cards that won’t charge me extra for using them abroad.
