Credit Card Guide
What is a Credit Card Foreign Transaction Fee?
Credit cards have become an important part of our daily lives especially in the current day and age. With rising expenses and pay cuts, more people have started to become reliable on the use of credit cards as a way of paying for things that they do not currently have the money for. Depending on which credit card you opt for, you will be given a credit limit that is set on a monthly basis. This limit is a guideline of how much you can spend on credit on a monthly basis. The amount of credit limit that you are granted is known to vary depending on which credit card company you decide to go with and your past credit history rating. Even though credit cards are mainly applied for so that they can be used in your domestic region, many people have started to make effective use of the card in other international countries.
When ever one goes on holiday, they are usually known to take a set amount of cash with them. It is quite common for one to find something that they would like to buy which they did not take account for when considering how much money to take with them. In such circumstances, many people tend to make effective use of their credit card. Using your credit card abroad in any other country other than where you applied for the card initially is known to cost you. This is known as a credit card foreign transaction fee. The amount that you have to pay can vary depending on which credit card company you are initially registered with. Some credit cards are known to charge you a one off fee for foreign transactions meaning that regardless of how many transactions you make, you will only be charged once. This however is quite rare.
More often, what you will see is that you will get charged for each foreign transaction separately. The amount is usually a percentage of the amount of the transaction rather than a set amount. When it comes to using your credit card abroad, it is a good idea that you inform your credit card company before leaving. If you do not inform your credit card company and your card is used abroad, the chances are that the card will not work or be declined for safety reasons. You will have to request your credit card company to allow purchases to be made at a particular foreign country for a prescribed time period. This will help ensure that any chances of fraud are automatically reduced.
When it comes to credit card foreign transaction fees, it is a good idea to take your time in reading the fine print. There are usually a number of different clauses attached to foreign transactions which one should always be aware off. Before opting to use your card abroad, make sure you have understood what it means for you and your credit card. Ideally you would want a lawyer or a financial advisor to have a look at your agreement.
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