A MasterCard or Visa card can be used overseas, but you’ll need to expect some foreign service fees every time you use one of these cards abroad. Just because you are allowed to use it out of the country, does not mean that you don’t have to pay for this service.
Featured Credit Card for Travellers
The Westpac Earth Platinum credit card is the perfect card for travelers. Earn 1.5 Frequent Flyer points for every $1 spent on the AMEX with no points cap. You also get complimentary international travel insurance, not only for yourself but also your immediate family. As an added bonus, you can get an additional warranty on selected purchases on the card.
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- Cash Advance Rate of 21.49% p.a.
- 45 days interest free
Foreign service fees
There are four things to look at when examining foreign service fees and credit cards. These are:
- 1. The fee for converting foreign currency.
- 2. The fee for cash transactions.
- 3. The dynamic currency conversion.
- 4. The charges for overseas transactions.
The foreign currency conversion fee will be charged any time you make a purchase overseas. These foreign service fees are about 2% to 3% of the amount purchased. It is a fee that you pay so you can have the convenience of using your card in a foreign country. It can be well worth the charge if money is desperately needed while on a holiday.
The overseas transaction charge is a fee for making any transaction abroad. It may be charged by the provider for your credit card, but this fee is often waived by providers in Australia.
A cash transaction fee is charged when making cash transactions. More and more Australians are choosing debit cards to use overseas in place of a credit card, but it is nice to know that your credit card can help you out if you really need it when you are travelling.
Dynamic currency conversion is not the same as the foreign currency conversion fee. The dynamic currency conversion fee is charged by banks and foreign retailers. What they will do is charge you in your own home currency so that they can add 4% or more to the total purchase price. By doing this, the foreign currency conversion fee charged by your credit card is void.
All of these foreign service fees will not seem important if you are experiencing a real emergency while you are travelling, but they should seem important if you are just using your credit card to make basic travelling purchases. Keep all of these foreign fees in mind the next time you get away for a holiday.
