Answered by The Penny Pincher
All visa and master cards will charge at least a minimum amount of 1%. From there the difference can become striking. Bank card issuers of Visa and Mastercard can tack on as much as another 2 to 4% above the 1% minimum. If you use your card to withdraw cash you can have another 4% tack on as well. It used to be that the best rates for exchanging currencies was by using bank cards, however, this has changed in the past few years.
Using a credit card overseas is convenient and does provide protection in the many areas that I discussed previously. The foreign transaction fee is not that big of an issue, what is is your bank’s individual policy and charges that they track on to your transactions.
In general these are some fees charged by major credit/charge cards:
• American Express charges a flat 2% for foreign transactions.
• Diners Club charges a flat 2% for foreign transactions and a 4% fee for cash advances.
• US Bank Visa, Citibank MasterCard and Chase MasterCard all charge a 2% foreign transaction fee.
Cash advances are approximately 4%. This fee is in addition to the 2% foreign transaction fees.
The point to understand is that it pays to check with your bank and determine what card will offer you the best benefit while your overseas.