Foreign Transaction Fee

Explanation: The fee that you will be charged on the purchases that you make while traveling outside of the United States OR while purchasing items over the internet from merchants that are located outside of the U.S.

Our Thoughts: The Foreign Transaction Fee for most credit cards is generally between 2-3 percent of the amount of each purchase you make overseas. For example, if your credit card has a Foreign Transaction Fee of 3 percent and you charge $1,000 on this card while traveling outside the U.S., you will be charged a $30 fee. It may be worth applying for a credit card with no foreign transaction fee before going on your trip.

Background: Learn more about foreign transaction fees