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As more people become global, it is necessary for the business owner to be able to use their credit cards in other countries. This is true whether you are traveling for business or for pleasure. You may need to reserve hotel rooms, rental cars, purchase clothing and other items while in another country. Purchases made in other countries are subject to an international credit card fee. This fee is charged by Visa and MasterCard and most card issuing banks charge their own fees on top of the international credit fee. It is generally a percentage of the total purchase. This practice pushes the final price of your purchase higher. The American Express charge card is one of the few cards that do not charge an international fee on overseas purchases. American Express offers charge cards for both personal use and business use.
One controversial fee that is added to the international credit card fee is the Dynamic Currency Conversion, or DCC. This fee is charged by merchants when they calculate your bill in US dollars instead of their local currency. The controversial part of the DCC fee is that this fee is often added to the bill even after the card has been charged in US dollars, simply because the transaction took place in another country. Since most travelers do not question the amounts that are charged to their credit cards, they do not notice the extra fee that was added. As a result, the traveler ends up paying a DCC fee multiple times for a single purchase. International credit card fees are also charged to automatic transaction machine withdrawals.
The international credit card fee can run as high as ten percent, which adds a significant amount to the purchase. Even purchases completed online are subject to the international fee if you purchase something from a company that is located overseas and you are still located in the United States. You can curb these fees by finding a card that has the lowest international fees. You may even be able to negotiate with your bank to lower their international credit card fee. The best way it avoid the international credit card fee altogether is to use and American Express card, or another card that doesn't charge this fee, or use cash and travelers checks. |
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