Chip Lupo, Credit Card Writer
@CLoop
To calculate a foreign transaction fee, simply multiply the percentage your credit card charges for the fee by the total of your international purchase. Foreign transaction fees are typically around 3% of each transaction, and that amount is added to your purchase. While 3% may not seem like a huge price to pay, these fees can add up over many transactions, whether you’re shopping on foreign soil or through a website based outside of the U.S.
When you’re charged a foreign transaction fee, you’re essentially paying a combination of surcharges assessed by both the credit card network and the issuer. The credit card issuer, however, ultimately decides whether to levy the fee. If a credit card does not charge a foreign transaction fee, it’s because the issuer is absorbing the credit card network’s percentage of the fee rather than passing the cost on to their customers.
If a credit card charges a foreign transaction fee, it will be listed under the fees section in the card’s terms and conditions.
