Say ‘Bon Voyage’ to Credit Card Foreign-Transaction Fees

Photo by Syda Productions / Shutterstock.com

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.

Disclosure: The information you read here is always objective. However, we sometimes receive compensation when you click links within our stories.

Read Next
12 Ways Retirees Can Earn Passive Income
12 Ways Retirees Can Earn Passive Income

These simple ways of earning income without a lot of active, ongoing effort can stretch your retirement dollars.

Marooned at Home? Earn Some Cash Playing on Your Computer
Marooned at Home? Earn Some Cash Playing on Your Computer

Earn cash by reading emails, taking surveys, playing games, shopping and signing up for offers through this website.

7 Gadgets Under $60 That Can Boost Your Health
7 Gadgets Under $60 That Can Boost Your Health

These Amazon finds can help ease foot aches, boost energy and even protect your heart.

7 Ways to Shop at Costco Without a Membership
7 Ways to Shop at Costco Without a Membership

You don’t necessarily need to join to get in on the warehouse store’s savings.

3 Reasons You Can’t Rely on Medicare Alone
3 Reasons You Can’t Rely on Medicare Alone

Counting on Medicare to cover health care costs can jeopardize your retirement plans.

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Most Popular
If You Find This Thrift Shopping, Buy It
If You Find This Thrift Shopping, Buy It

This iconic dinnerware is prized for everyday use as well as reselling for profit.

20 Things That Are Actually Worth Stockpiling
20 Things That Are Actually Worth Stockpiling

You don’t need a year’s supply of toilet paper to survive an outbreak, but consider stocking up on these items.

9 of the Best Things to Do When You Retire
9 of the Best Things to Do When You Retire

You’ve waited all your life for this moment. Make the most of your retirement.

Medicare Will Not Cover These 6 Medical Costs
Medicare Will Not Cover These 6 Medical Costs

Don’t let these health care expenses catch you off guard in retirement.

Beware This Hidden Ingredient in Rotisserie Chicken
Beware This Hidden Ingredient in Rotisserie Chicken

Something foul may lurk in those delicious, ready-to-eat birds.

7 Kirkland Signature Items to Avoid at Costco
7 Kirkland Signature Items to Avoid at Costco

Even if it seems you save a bundle buying Costco’s Kirkland Signature brand products, they may not be the bargain they appear to be.

Never Buy These 10 Things on Amazon
Never Buy These 10 Things on Amazon

Just because you can purchase something on Amazon doesn’t mean that you should.

17 Everyday Products Now Facing Shortages
17 Everyday Products Now Facing Shortages

Many goods we take for granted have become tough to find in 2021.

3 Colors That Can Ruin Your Car’s Resale Value
3 Colors That Can Ruin Your Car’s Resale Value

Select the wrong color for your next car, and it could depreciate twice as fast as others.

9 Groups Who Should Brace for Higher Income Taxes
9 Groups Who Should Brace for Higher Income Taxes

Recent proposals would hike taxes for people with a wide range of incomes.

7 Big Purchases You Should Never Make
7 Big Purchases You Should Never Make

Sometimes a big-ticket purchase is nothing more than a big waste of money.

5 Ways to Get Amazon Prime for Free
5 Ways to Get Amazon Prime for Free

Hesitant to drop $119 a year on an Amazon Prime membership? Here’s how to get it for free.

8 of the Worst Things to Buy at Target
8 of the Worst Things to Buy at Target

No store can specialize in everything. For some purchases, it’s smart to shop elsewhere.

5 States With the Worst Health Care for Retirees
5 States With the Worst Health Care for Retirees

All of these states are located in the same region of the nation.

How to Buy Gas At Costco Without a Membership
How to Buy Gas At Costco Without a Membership

The warehouse club often has some of the cheapest gas in town. Here’s how you can get it as a nonmember.

8 Things You Should Be Buying at Thrift Stores
8 Things You Should Be Buying at Thrift Stores

For one expert, these secondhand bargains stand out from the rest.

20 Great Part-Time Jobs for Retirees
20 Great Part-Time Jobs for Retirees

Retirees can dial back the intensity of work while continuing to bring in a paycheck.

3 Ways to Get Microsoft Office for Free
3 Ways to Get Microsoft Office for Free

With a little ingenuity, you can cut Office costs to zero.

11 Foods That Can Keep for Years
11 Foods That Can Keep for Years

These are some of the longest-lasting groceries you can buy.

View More Articles

View this page without ads

Help us produce more money-saving articles and videos by subscribing to a membership.

Get Started

Add a Comment

Our Policy: We welcome relevant and respectful comments in order to foster healthy and informative discussions. All other comments may be removed. Comments with links are automatically held for moderation.