Are you planning a foreign trip but you are worried about how much fees you will have to pay?
Accessing your money abroad can be a nightmare. Many people have used their credit cards abroad without thinking about it only to get home and realise that it has cost them a fortune. Before you jet off on holiday this year, why not take the time to look at transaction fees abroad? Here you will find more information on the different fees you can expect to pay with each bank.
The Fees You Can Expect to Pay
There are a variety of fees that you can expect to pay when you are on holiday abroad. You will often find the most common fee listed as “Overseas Transaction Fee” or a “Currency Conversion Fee“. You will find that this fee often takes from 1%-3% depending on who your credit card is with, Visa, Mastercard or American Express. Out of this fee around 1% of it is taken by the card payment system. However, there are some cards that are starting to offer 0% foreign transaction fees. Check out our guide on leading credit cards with low foreign currency transaction costs. Foreign Currency & International Fees for Credit Cards
Transactions and withdrawals
The overseas transaction fee is applied when you buy anything on the card. If you want to withdraw money from a credit card then you will often be charged high cash advance fees. On average a cash advance fee will be from 1%-3%. This is in addition to any interest charges that are applicable. The thing about credit card fees is that at the end of the day, they really add up. If used just a couple of times then it isn’t really a lot of money to have to pay. However, if you start using the card to pay for everything then it will really mount up. Another thing that you have to consider is that the cash advance fees also start charging you interest. You receive no interest free periods with cash advances. So, as soon as you make the withdrawal, you will be charged interest each day until you pay it back. Cash advances can be really expensive and you should only use them if they are really needed. The fees that you are charged will depend completely on the type of credit card that you have. There are quite a lot of different credit cards to choose from so it would be a good idea to choose one which has the lowest international fees.Back to top