What Are The Various Charges Involved On Credit Cards Used Abroad?

By Sneha B K
Subscribe to GoodReturns
For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

    After having a splendid international holiday, one may get a rude shock after going through the credit card bill as it heavily differs from the amount what you had calculated, especially if you are not in tune with the charges on credit cards spent abroad.

    There are some not so friendly charges levied by banks when credit card is used abroad.

    What are the Various Charges Involved on Credit Cards Used Abroad?

    Here are few things to consider before travel abroad and before planning your expenses on a credit card.

    1) Currency Conversion Fee

    As you own a Indian credit card, the banks and institution of Visa and MasterCard automatically may charge around 1-2% on foreign exchange.

    Also read:5 Best Credit Cards With No Annual Fees

    2) Foreign Transaction Fee

    The card providers will charge around 2.5 -3.5 per cent on the transaction amount, irrespective of the currency.

    3) Cash Advances fee

    Cash advances are very expensive even in India. Withdrawing abroad will definitely be higher. There can be a charge around 1-4 per cent every time you carry out cash withdrawal. However, it will be in addition to local cash withdrawal charges.

    4) Currency Conversion date

    Conversion date may not be necessarily the date which you made purchase. It depends on the merchant on which day the transaction is posted. It may vary with one or two days. So, when you calculate your payment amount it may vary with billed amount due to different dates and respective currency fluctuations.

    Also read: 6 Wrong Ways of Using your Credit Card

    Conclusion

    Considering all the above points, you may have to pay additional of 5-6 per cent on your actual amount spent. Therefore, one should be aware of all the cost and charges involved before going for it.

    If you are a frequent flyer, buy a credit card which suits your lifestyle and avail discounts on airfare and many more.

    GoodReturns.in

    Read more about: credit card
    Company Search
    Enter the first few characters of the company's name or the NSE symbol or BSE code and click 'Go'

    Find IFSC

    We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more