INNOVATIVE WAYS TO AVOID FOREX CARD TRANSACTION CHARGES ON YOUR UPCOMING INTERNATIONAL TRIP
Do you have an international trip planned in the near future? If yes, then your excitement must be shooting through the roof! After a two-year-long hiatus in international tourism, an overseas trip is bound to give anyone the ‘happy high!’
With the travel itinerary prepared, flight tickets and hotel rooms booked, and suitcases packed, do you feel you are still missing something? Well, in all honesty, an international trip is incomplete without a top-tier travel card. But, unfortunately, if you carry your usual Debit or Credit card abroad, you might be bombarded with pesky Forex card transaction charges. Well, what are they, and how can a travel card help? Let us find out!
WHAT ARE FOREX CARD TRANSACTION CHARGES?
In a layperson’s language, a Forex card transaction charge can be defined as a charge that your Credit or Debit card company adds onto transactions that process foreign currency or pass through foreign banks. The foreign transaction fee ranges from 3 percent to 5 percent of your total purchase. A foreign transaction card usually has two components –
- Network Fee – It is the fee charged by the Credit card network, such as VISA, RuPay, or Mastercard. The network fee is fixed at 1 percent of each transaction for Visa and Mastercard.
- Issuing Fee – It is that part of the Forex card transaction charge imposed by the bank.
TOP THREE INNOVATIVE TACTICS TO AVOID FOREX CARD TRANSACTION CHARGES ON
- Exchange Currency Before Traveling – One of the most feasible ways to avoid foreign transaction fees is by exchanging currency before you leave the country. Although carrying hefty amounts of foreign money also comes with its own fair share of risks, you can stuff a basic amount of cash into your secure suitcase before taking off. Please enquire with your Credit or Debit card company about currency exchange, as they might be able to sell you foreign money without additional fees.
- Apply for an International Travel Card – The most convenient way to avoid Forex card transaction charges is by applying for an international travel card in a timely fashion. Such cards do not exact Forex markup fees, and you may save anywhere from 3 percent to 5 percent on every transaction abroad. In addition, some of the best travel cards come with rewards and benefits, such as travel insurance, airport lounge access, interest-accruing savings account, and more.
- Analyze Your Bank’s International Partners – Besides the foreign transaction fee levied on card swiping at PoS counters abroad; you will also be burdened with ATM transaction charges on your money withdrawals from an overseas location. Usually, the ATM withdrawal fee ranges from 1 percent to 3 percent per transaction. However, you can swerve such ancillary expenses from your credit card bill by examining your bank’s foreign partners. For example, many mega-banks and financial institutions have alliances with banks abroad, implying that you will not be charged any fees while withdrawing money from your bank’s overseas partners.
So, there we have it, a short and straightforward overview of three innovative yet effective ways to avoid Forex card transaction charges on your upcoming international trip.