Here’s an unexpected reason to travel overseas this year: It’s less likely that your credit card company will hit you with those pesky “foreign transaction” fees.
Fewer credit cards are subject to this type of fee, according to CreditCards.com’s 2016 Credit Card Fee Survey, which was released this week.
The fees of 100 common general-purpose credit cards were examined for the study. CreditCards.com found a total of 593 fees attached to those cards, down from 613 total fees last year.
Among the different types of fees, the biggest change was seen in foreign-transaction fees. Of the 100 cards, 61 are subject to foreign-transaction fees, down from 77 last year.
That’s especially good news considering that Money Talks News founder Stacy Johnson, a certified public accountant, has named the fee among 10 of the world’s most insulting fees. He explains:
This is a fee charged on credit card purchases processed outside the United States … The implication of this insulting fee is that it’s related to the intricacies of currency conversion. But lawsuits have revealed these fees are nearly pure profit: money for nothing.
The average foreign-transaction fee this year is 3 percent, which remains unchanged since last year, according to the study.
CreditCards.com attributes the decline in foreign-transaction fees to increased competition as well as changes in industry regulations that have stemmed from the Credit Card Accountability Responsibility and Disclosure Act (CARD) of 2009:
Overall, as card issuers compete for a larger share of cardholders and respond to regulation changes, the fee landscape is now more favorable for those who carefully shop for a new card.
If you’re in the market for a new credit card, visit the Money Talks News Solutions Center for help finding the perfect credit card.
What’s your take on foreign-transaction fees? Let us know why by commenting below or over on our Facebook page.
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