Money Matters: Foreign Transaction Fees and Credit Cards

 

With international travel expected to approach pre-pandemic levels this year, WalletHub today released the results of a nationally representative Foreign Transaction Fee Survey gauging people’s opinions on various aspects of spending money abroad, along with a report on WalletHub’s Best Credit Cards for International Travel.

Please find key takeaways below, followed by commentary from WalletHub experts (audio and video files included).

• Not-So-Foreign Fees:  Roughly 7 in 10 people don't realize foreign fees can apply without foreign travel. Foreign transaction fees can also apply to purchases made through foreign merchants while you’re in the U.S.
   
• Unaware of Foreign Fees: 41% of people don’t know if their credit card has a foreign transaction fee. This is most common among people over the age of 45. 
   
• Swearing Off Foreign Transaction Fees: 53% of people say they would never get a credit card that charges a foreign transaction fee.
   
• Best Exchange Rate When Traveling Abroad: The majority of people (79%) don't know that using a credit card gets them the best exchange rate when traveling abroad. 
   
• Worries When Using Credit Cards Internationally: Card loss/theft (35%) is what people worry about the most when using their credit cards internationally, followed by currency exchange rates (28%) and credit card foreign transaction fees (23%), leaving overspending (13%) at the bottom of the list. 
   
• Unfair Fees: 62% of people say foreign transaction fees are unfair. Women (71%) are more likely to feel this way than men (52%). 
   
• Credit Card Politics: More than 7 in 10 people think foreign fees should be cheaper in countries allied with the U.S. 
   
• Best Credit Cards for International Travelers: Capital One Venture Rewards Credit Card and Chase Sapphire Preferred® Card. Both have $0 foreign fees and great travel rewards.
   
• Best Credit Card Companies for No Foreign Fees: Capital One, Discover and NFCU are some of the major issuers that exclusively offer no foreign transaction fee credit cards. Getting such a card, along with a no foreign fee debit card, enables international travelers to minimize the cost of currency conversion.