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How to compare 0% foreign transaction fee credit cards

Published on November 27th, 2020
  Written by 
Bill Tsouvalas
Bill Tsouvalas is the managing director and a key company spokesperson at Savvy. As a personal finance expert, he often shares his insights on a range of topics, being featured on leading news outlets including News Corp publications such as the Daily Telegraph and Herald Sun, Fairfax Media publications such as the Australian Financial Review, the Seven Network and more. Bill has over 15 years of experience working in the finance industry and founded Savvy in 2010 with a vision to provide affordable and accessible finance options to all Australians. He has built Savvy from a small asset finance brokerage into a financial comparison website which now attracts close to 2 million Aussies per year and was included in the BRW’s Fast 100 in 2015 as one of the fastest-growing companies in the country. He’s passionate about helping Australians make financially savvy decisions and reviews content across the brand to ensure its accuracy. You can follow Bill on LinkedIn.
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If you are planning to travel overseas with your credit card you could attract foreign fees transaction costs for every swipe you make. This could increase your credit card bill with hundreds of dollars that could be used elsewhere. You will need a 0% foreign transaction fee that will be able to block the sting of foreign fees. Here are five ways that you can compare your no foreign fee transaction cards to get the best deal.

What are foreign fees?

Foreign fees are fees that some banks apply to individual purchase that you make overseas. It is a 2-3% percentage of whatever purchase you make, which could drive the overall bill you pay on your credit card. This fee can also be applied to purchases that you make in the comfort of your home from foreign countries. A 3% fee might appear to be nothing when spending on small purchases overseas. However, if you are planning a whole holiday trip expenses such as accommodation, car rentals and food can easily run up your bill to thousands of dollars. If you are travelling in a country that uses cash a lot instead of credit cards you could be faced with some hefty ATM withdrawal fees that can range from $3.52 to $5.50.

Choose a card that has strong traveller benefits

All it takes is finding the right card to avoid foreign fees. You need to choose a card that has features and rewards that are tailored towards travelling. Choose a 0% foreign fee credit card that provides you with travel insurance that can give you peace of mind knowing that you are protected. Some cards also offer benefits such as lounge access, and hotel purchases. This will help smoothen out any kinks that you might stumble upon while travelling with no added costs.

With flexibility comes more freedom

When choosing a 0% foreign credit card you need to check if the card will fit your lifestyle. If you are a frequent flyer, be it for holidays or business trips, you need a card that will be able to help you save up on fees. A card that has frequent flyer rewards attached to it will be a winner in helping you save on flight costs.

However, you also need to check if the card has flexible payment features. This should be done before you sign up for the card by checking its terms and conditions.

Can it go everywhere you go?

Is the card a card that is widely accepted in foreign countries? You will need a card that will be able to help you no matter where you travel before you find yourself financially stranded due to the card not being accepted in a certain country. The most popular cards that are widely accepted in many countries are usually Visa and Mastercard, therefore it would be best to choose something along those lines.

Do the fees balance out?

Have you researched the overall costs for having a 0% foreign fee transaction card? Always keep in mind that when comparing your credit card, you need to know the overall costs. This will help you avoid a card that comes with unnecessary features and fees that do not mould to your needs.

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This guide provides general information and does not consider your individual needs, finances or objectives. We do not make any recommendation or suggestion about which product is best for you based on your specific situation and we do not compare all companies in the market, or all products offered by all companies. It’s always important to consider whether professional financial, legal or taxation advice is appropriate for you before choosing or purchasing a financial product.

The content on our website is produced by experts in the field of finance and reviewed as part of our editorial guidelines. We endeavour to keep all information across our site updated with accurate information.

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