What is a foreign transaction fee?

A foreign transaction fee is a fee imposed by credit card companies on purchases made outside of the United States. It is often a percentage of the transaction and can range from 1-3%. This fee is charged in addition to any other applicable fees and charges associated with the purchase. This fee applies even if the purchase is made with a credit card that doesn’t have the foreign transaction fee as a feature. In Oregon, credit card companies have the right to charge foreign transaction fees for purchases made outside the U.S. as per the Credit Card Law. Merchants may also add their own fee for foreign purchases or offer discounts for those made within the U.S. The foreign transaction fee is meant to cover the costs associated with exchanging foreign currency for the U.S. dollar. Credit card companies use the international exchange rate and some charge a processing fee as well. This fee helps to cover the cost of currency conversion, which can be quite expensive. Knowing the foreign transaction fee in advance is necessary so that consumers can compare the true cost of the purchase. The foreign transaction fee must be disclosed to the customer before the purchase is finalized.

Related FAQs

Can a creditor charge a late fee for a credit card payment?
What is a Fair Credit Billing Act?
What is a default on a credit card?
What is a credit limit?
What is the Truth in Lending Act?
Can I increase my credit limit?
How do I dispute unauthorized charges on my credit card?
How do I use a credit card responsibly?
Are there any rules or regulations that apply to credit card companies?
What can I do to improve my credit score?

What is a foreign transaction fee?

Related FAQs

Related Blog Posts