Credit Card International Finance Charges

Many people who travelled abroad during the last ten years have recieved notice of a class action settlement in which credit card companies are required to refund international finance charges.  The class action suit stemmed from the fact that many credit card issuers did not properly or clearly disclose the existence of international transaction fees.

While some will benefit from the refund, the ultimate effect of the lawsuit is clearer disclosure in regard to international finance charges.  And, unfortunately, the credit card companies have made clear the fact that there is a 3% international transaction fee for all purchases abroad.  This is now the industry standard, with major issuers ranging from Chase to American Express all charging consumers a 3% international transaction fee.

Essentially, when using your credit card abroad, these fees are inescapable.  However, there are a few steps one can take to reduce these fees.  Perhaps the easiest is to book hotel and travel accomodations on U.S. based websites.  Another is to use a debit card whenever possible, as most debit cards do not charge 3% transaction fees.

SmartCreditChoices.com has reviewed over 75 credit card applications in search of a credit card with no international transaction fees.  Unfortunately, we have yet to discover one.  As soon as we discover a no transaction fee offer, we will post that information here.