What is a foreign transaction fee?

A foreign transaction fee is an extra fee that is charged when using a credit card outside of the United States. The fee is imposed to cover the cost of processing and exchanging foreign currencies. It is typically a percentage of the total purchase amount and is usually around 3%. In Delaware, credit card laws establish what a credit card company can charge as a foreign transaction fee. This usually includes the costs of exchanging the currency, any additional fees from a foreign bank, and the credit card company’s own processing fee. The exact fee that a credit card company charges is determined by the credit card agreement. In some cases, credit card companies will waive the foreign transaction fee on specific credit cards for customers who frequently travel abroad. This can be beneficial for customers who often purchase goods and services in foreign currencies. Delaware has specific laws to help protect the rights of credit card holders from unfair foreign transaction fees. These laws require credit card companies to provide customers with clear and accurate information about the fees prior to use, and give customers the ability to dispute the charges if they feel the fees are too high.

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What is a foreign transaction fee?

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