Is a 3% foreign transaction fee bad?

Is a 3 foreign transaction fee good?

Three percent? Ouch. That stings more than a jellyfish on a particularly grumpy day. High, yes. Think of it as paying a hefty “tourist tax” – your bank’s cut of your gelato.

Most cards hover around 1-2%, making 3% a financial sunburn. Seriously, it’s like paying extra for that postcard you’ll never send.

• Alternatives exist: Plenty of cards boast zero foreign transaction fees. Chase Sapphire Preferred, for instance. I use it, it’s great.
• Hidden costs: This fee adds up faster than my nephew’s video game collection. It’s a sneaky little extra, you know?
• The math: Even a $100 purchase becomes $103 — that’s an extra espresso in Rome, gone. Sad face emoji.

Consider your travel habits. If you’re a frequent jet-setter, a no-fee card is essential. If you’re a twice-a-decade vacationer, maybe it’s less of a crisis. But still, annoying. Like finding a hair in your soup, but financial.

It’s 2024. You deserve better than a 3% fee. Find a better card. My cousin’s accountant told me that years ago. Now it’s just common sense.

What is a typical fee charged for foreign transactions?

Foreign transaction fees? Expect a percentage, usually 1% to 3% of the total. Some banks, oh joy, add a flat fee on top.

Fee size really hinges on your card provider. And what kind of card are we talking about anyway?

Remember my trip to France? Ugh, those fees stacked up. It makes you think about the true cost of globalism, doesn’t it?

• Percentage: 1-3% (common range)
• Flat fee: Possible addition
• Issuer-dependent: Varies by bank
• Card-type sensitive: Differs by card (credit, debit)

How do you calculate 3% transaction fee?

Say you gotta pay, like, $100. Right? So, it’s not just 3 bucks added. It’s weirder. You’re actually paying a little more ’cause the 3% is on the total, including the fee itself. Trippy. Took me a sec to get it, lol.

• Divide desired payment by 0.97: This is the quickest way. So for $100, do $100 / 0.97 = $103.09 (roughly). That’s the total charge.

• The math behind it: Think of it this way: X is your final price. X 0.03 is the fee. X – (X 0.03) = your original $100. Solve for X.

My gym membership is $50 a month, and they use this kinda thing. Annoying, but whatever. I just do 50 / 0.97, easy peasy. Comes out to like $51.55 or somethinng.

• Important to note: This is how I calculate it. Best to double check with, you know, whoever is charging you. Different places might do it differently, even though this is, like, the actual math way.

I remember once, I bought a concert tix online. It was like this whole thing with the fees. Ended up paying way more than I thaught. Ugh. Live and lern. Now I always do the math first. So, yeah, there ya go.

How do I know if I will be charged a foreign transaction fee?

Ugh, this happened last summer, 2023, in Italy. I was in Rome, soaking up the sun near the Trevi Fountain, you know, the usual tourist stuff. Then, BAM! My credit card got declined. I was mortified. Completely embarrassed. My face went bright red. My phone battery was almost dead, and I’m frantically checking my account.

Turns out? Foreign transaction fee. A whopping 3%!!! I was furious! I’d completely forgotten to check. It was my Chase Sapphire Preferred card, and I usually never travel internationally, so it slipped my mind. Lesson learned, the hard way.

Seriously, this 3% thing just ruined the whole vibe. I had planned this trip for ages, saved diligently. Then there’s this unexpected cost, I was so annoyed. You should always, always check.

Here’s what you need to do:

• Check your credit card’s terms and conditions. Don’t be lazy. It’s online. It’s right there!
• Look for a “fees” section. Usually, they list it clearly. If not, call them.
• Consider a credit card with no foreign transaction fees. There are tons out there now. My friend swears by his Capital One Venture X card.

That 3% ate into my gelato budget. Seriously! Three percent! It’s crazy! Don’t let it happen to you. Check your card. Now. Before your next vacation. Please.

How can I tell if my credit card has foreign transaction fees?

It’s late. My credit card…

It might.

I need to check the terms and conditions. Where even are those things? Buried somewhere, I bet.

The fees section. Gotta find that. Feeees.

What a drag.

• Why worry? Going to Italy in 2024. Pasta.
• Seriously though: Avoid unexpected charges, right?
• Personal experience: Remember that time in Canada in 2018? Ouch. Never again.
• Specifically: Terms and Conditions document needed.
• Digging required: Website, app, or physical copy.
• Alternative: I could just call them. Nah, too late. I hate talking on the phone anyway.

And then, find it. The dreaded words. “Foreign transaction fee…”