Foreign Transaction Fee

Explanation: A fee assessed for purchases made while traveling outside of the United States OR through merchants 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 or through foreign-based merchants. 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 or even booking flights, hotels, day trips, etc.

Background: Learn more about foreign transaction fees