For those who frequently travel overseas either due to their working schedules or because of their lifestyles, the phrase “international transaction fees” would probably not sound unfamiliar at all. Banknotes, checks, coins, travellers cheques and so on are all starting to be erased from people’s minds in an age overwhelmingly dominated by the idea of using credit cards. It’s now quite difficult to guess what will be the medium of exchange in the future, especially if one is to imagine how fast things have changed since the invention of money by the Lydians.
Although there are millions of credit card users in today’s world, very few of them know exactly what kind of additional fees that the credit card issuers charge on some transactions. While shopping overseas, making online reservations or buying items online, it is very likely that you will be charged a fee for those transactions that you undergo. Surprisingly, you might not even see these fees on your credit card statement if you are not well-informed about what the credit card companies do for certain transactions.
Throughout the world, while most banks do charge some amount of international transaction fees, several major credit card issuers do not such as Capital one. Nevertheless, a 1% currency conversion fee , which is charged by both Visa and MasterCard, is almost standard if you make foreign transactions using your credit card. Many banks, furthermore, implement additional up-to-3% fees onto each foreign currency transaction, and they charge fees for foreign ATM usage abroad as well. As the competition amongst the banks is fiercely growing nowadays, there are some credit card companies that offer ‘no’ additional fees charged for currency conversion, foreign transaction or foreign ATM usage.
On the other side, travellers cheques – even though credit card usage has rendered them less important than they were before – have some advantages for the travellers who want to financially secure themselves during their trips. For instance, travellers cheques, which are commonly used in the USA and Canada, can easily be replaced if they are lost or stolen, and can be used instead of cash in most places. Nevertheless, it may be regarded as an drawback that travellers need to carry their passports with them all the time, because some places ask for passports together with a picture ID or a driving license.
It is, therefore, highly important that people on a vacation make a choice as to how they will administer their payments. It is widely accepted that the question of money is a crucial point that people must take into account before travelling overseas. No matter what, it is for sure that travellers need to be thoroughly aware of the means of payment they go for, since there are always parties in search of hitting travellers with fees and surcharges that may not be clearly disclosed.