![]() For example, a ‘spending fee’ of around £1-£1.50 every time you use your card abroad, on top of the foreign purchase fee. This is not only the case with credit cards, but debit cards too can incur some nasty surprises when you use them abroad. If you do have to leave a balance to pay off over time, it’s good to know how much interest you’ll be paying.Ĭheck out how much you will be charged for taking out cash from an ATM abroad using your credit card, as the difference between cards can be quite astonishing. Look at the APR of any card you are considering. These often offer multiple benefits for the globetrotter that may be useful, beyond simply the free foreign transactions. If you are looking for a credit card solely for travelling abroad, check out the range of dedicated travel credit cards. Other possible benefits of no foreign transaction fee cards When choosing a no foreign transaction fee card, you should always check out the other perks that might help you on your travels or at home – and be aware of some particulars which can easily be overlooked. However, you should watch out for surprise fees and charges that can quickly wipe the benefits from shopping easily abroad. Some no foreign transaction fee cards can also be used as a balance transfer card or cashback card. Not charging a foreign transaction fee is just one of many benefits that a credit card issuer can offer you. What is the best no foreign transaction fee credit card to use when travelling abroad? Section 75 purchase protection – for goods and services valued between £100 and £30,000 – can be extremely useful when travelling abroad, as it’ll likely be much harder to return faulty goods once you’re back home. If you choose sterling, the merchant will not only apply their own (less favourable) conversion rate, but you’ll also be smacked with a fee from your credit card issuer. It is important to remember that when you use your credit card abroad, and you are asked whether you want to carry out the transaction in sterling or the local currency, that you choose the latter. ![]() The ‘no foreign transaction fee’ offered by credit card issuers is almost always offered with the stipulation ‘when made in the local currency’. Sometimes an enhanced APR rate is payable, and payable immediately. There is usually a cash advance fee and a minimum charge applied, regardless of how much you withdraw. You might fairly assume that it’s also free to withdraw cash from a foreign ATM with such a card, but this is almost never the case. In this context, a transaction is any time you use your card to make a purchase. The key, though, is understanding what constitutes a ‘transaction’. So, how can you avoid foreign transactions fees? With a no foreign transaction fee credit card! What is a no foreign transaction fee credit card?Ī no foreign transaction fee card is exactly as it sounds: a credit card that doesn’t apply a fee for foreign transactions. This is usually around 3% the total cost of the transaction.Īs you can imagine, this can make travelling whilst using your credit card a very expensive experience indeed. What is a foreign transaction fee?Ī foreign transaction fee is a surcharge on your bill that is added when you make a purchase that passes through a foreign bank or in a currency other than GBP. ‘No foreign transaction fee’ credit cards are a good place to start. The way to combat this is to become savvier about the credit card you take with you. Their ease of use, however, hides the fact that credit cards can become very costly travelling companions if used poorly. Energy and Digital products are not regulated by the FCA.Using your credit card to travel but want to avoid a surprise on your bill when you get home? Here’s our guide on everything you need to know about no foreign transaction fee credit cards.Ĭredit cards are synonymous with travel because they can be used in almost every country in the world. Compare The Market Limited is authorised and regulated by the Financial Conduct Authority for insurance distribution (Firm Reference Number: 778488). Registered Office: Pegasus House, Bakewell Road, Orton Southgate, Peterborough, PE2 6YS. The unique Ray ID for this page is: 81226428081977bcĬomparethe is a trading name of Compare The Market Limited. Please include what you were doing when this page came up and the Ray ID found at the bottom of this page. You can email the site owner to let them know you were blocked. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. ![]() The action you just performed triggered the security solution. The website is using a security service to protect itself from online attacks. Compare the Market - Home Sorry, you have been blocked You are unable to access Why have I been blocked?
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