How to Avoid Foreign Transaction Fees from Credit CardsFortunately, foreign transaction fees are becoming a thing of the past for many credit card companies. With so much competition, credit card issuers are choosing to release more options for consumers, such as frequent fliers and wealthy spenders, who spend a lot of money abroad and often get hit with high fees in the process.
A 2016 survey by CreditCards.com revealed that 39 out of 100 credit cards did not come with foreign transaction fees.1 So researching and comparing the various credit card options available will help you avoid these fees and potentially save a substantial amount of money when shopping internationally.
Just be sure to read the fine print associated with any credit card or debit card that you are planning on getting. Even if there aren’t any foreign transaction fees, there might be other aspects about a card, such as annual fees, that could still hurt your bottom line. On top of that, you might get hit with a high margin on the exchange rate, even if you are able to dodge the transaction fee—and that margin could cost you up to 5%.