| As major banks feel pressure to boost profits, some | | | | Because Capital One operates bank branches in both |
| credit card issuers have targeted foreign travelers for | | | | the U.S. and in Europe, it has opted not to charge any |
| special fees and surcharges. Foreign transaction fees | | | | foreign transaction fees. In addition, you can make a |
| often save money on most overseas credit card | | | | same-day payment to Capital One's secure Web site |
| purchases, compared to local currency conversion | | | | from any pre-registered checking account. This is how |
| services. However, a growing trend of rising service | | | | I saved hundreds of dollars in fees on my most recent |
| fees has forced smart travelers to search for better | | | | trip, spending a few minutes in the hotel's business |
| deals from competing banks. | | | | center to make a quick payment that cleared my |
| Using Credit Cards Abroad Saves Cash | | | | balance. Pentagon Federal Credit Union also offers a |
| Carrying cash abroad can be risky. A pickpocket or a | | | | handful of credit cards with no transaction fees, |
| lost wallet can ruin a vacation or stall a business trip. | | | | especially attractive for military members serving |
| For decades, travelers' checks allowed globetrotters | | | | overseas. |
| to reduce their risk by replacing lost or stolen funds. | | | | Watch the Register for Unexpected Credit Card Fees |
| Both solutions require you to find a change bureau | | | | While abroad, you may encounter retailers willing to |
| willing to trade your cash or checks for local currency, | | | | charge you in your home currency. These |
| usually at an unfavorable conversion rate. Standing in | | | | point-of-purchase conversions almost always use |
| line for a teller may have worked just fine ten years | | | | inflated rates that can run 10% or higher to credit card |
| ago, but it doesn't fit today's fast-paced lifestyle. | | | | issuers' market rates. Furthermore, these purchases |
| Just as credit cards have become widely accepted in | | | | still trigger foreign transaction fees, since the sales take |
| the United States, they have become a preferred | | | | place outside the U.S. |
| form of payment in many parts of the world. When I | | | | You don't always have to leave the country to run into |
| traveled to the UK in November 2009, a £10 cab ride | | | | foreign transaction fees. Some credit card issuers |
| converted to $16.50, including my bank card's foreign | | | | treat any transaction made outside the 50 U.S. states |
| transaction fee. I'm far happier to have paid fifty cents | | | | as "foreign," meaning you could get charged a fee for |
| by swiping a card than paying $18 after a trip to a | | | | an overseas online purchase or an in-person |
| bureau de change. | | | | transaction in the Dominican Republic. It's always a |
| Common Foreign Transaction Fees | | | | good idea to check with foreign-owned e-commerce |
| As of March 2010, major credit card issuers report | | | | companies whether your transaction will be processed |
| foreign transaction fees ranging as high as 3 percent: | | | | domestically. |
| - Capital One - no foreign transaction fee | | | | Frequent travelers can still find good value among |
| - American Express - 2-3%, depending on member | | | | credit card offerings, even when issuers charge |
| status | | | | foreign transaction fees. For instance, American |
| - Bank of America - 3% | | | | Express now offers numerous reward programs that |
| - Chase - 3% | | | | can benefit globetrotters, while also offering fast and |
| - Citibank - 3% | | | | convenient fraud protection and card replacement |
| - HSBC - 3% | | | | services. Airline affinity cards can earn back their |
| - Wells Fargo - 3% | | | | annual fees and service charges with free upgrades, |
| - Discover Card - 2%; accepted in China, the | | | | travel vouchers, and hotel nights. Regardless of the |
| Caribbean, Central America, Mexico and certain parts | | | | credit card you choose for your next overseas trip, |
| of Europe | | | | remember to notify your issuing bank of your |
| - Pentagon Federal Credit Union - varies, with at least | | | | upcoming itinerary, so they don't mistakenly place a |
| one fee-free product | | | | fraud block on your account. |