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How to minimize and avoid international transaction fees while traveling abroad.

Did you know that most major U.S. credit card companies charge an international credit card transaction fee if you swipe it abroad? Only recently have many of these companies began (as per legal requirements) to clearly disclose such fees so customers could plainly see what these charges were. So how do you minimize international transaction fees while traveling abroad?

First and foremost, don’t use the credit card! Instead, make purchases using travelers cheques or local currency. Exchange currencies through your bank before you leave to avoid high exchange fees or use an ATM since withdrawals do not generally have transactions fees, you can withdraw in local currency, and your bank’s foreign currency rate is likely much cheaper than anywhere else. You can also use your debit card but be sure the vendor does not run your card as a credit card, otherwise you will be subjected to the same fees.

The easiest way to avoid foreign transaction fees is to simply sign up for a card that doesn’t charge them – you’ll get the peace of mind using a credit card without the annoying fees that can really add up. Currently, Capital One and Discover are the only major credit card companies that do not charge international transaction fees; however, Discover is not accepted many places internationally.