Travel and International Transactions (2024)

FAQs

How to avoid DCC charges? ›

To protect Forex Card users from incurring additional charges, many Forex cards are pre-configured to decline DCC transactions automatically. This means that if a POS or ATM abroad offers you the choice to pay in your “home currency” or the local currency, the card will automatically decline the DCC option.

Many international travelers encounter foreign transaction fees while making purchases or withdrawing cash from an ATM in a foreign country. The easiest way to avoid a foreign transaction fee is to use debit or credit cards with no foreign transaction fees while traveling abroad.

If you want to keep a tab on the spending, a debit card can be a good option. Credit cards, on the other hand, are handy if you face a shortage of funds while travelling abroad.

A foreign transaction (FX) fee is a surcharge on your credit card bill that appears when you make a purchase that either passes through a foreign bank or is in a currency other than the U.S. dollar (USD). This fee is charged by many credit card issuers, typically ranging from 1% to 3% of the transaction.

Currency conversion fees are typically charged by the debit or credit card processor, like Visa or Mastercard, and run around 1% of the transaction amount. DCC is usually set by a merchant's service provider that processes the exchange rate and any additional fees.

What is Dynamic Currency Conversion? Dynamic Currency Conversion is a point-of-sale or online payment option for international transactions which allows cardholders to pay in Indian Rupees at an international location or with a merchant located in India but registered overseas.

It's possible to get a foreign transaction fee waived, but it isn't easy. Call your credit card issuer's customer service department and request that they waive the fee. It works best if you've had the credit card for many years, but even then, there's no guarantee the issuer will waive the fee.

Many banks offer credit cards with no foreign transaction fees, including the HSBC Low Interest Rate Credit Card and the Westpac Lite Credit Card for example. Or as an alternative, check out a non-bank provider like Wise or Revolut for a no foreign transaction fee card with low overall fees.

Is a MasterCard or Visa better for international travel? ›

According to Visa, cards issued through its payment network are accepted in 200 countries and territories around the world. Meanwhile, Mastercard reports acceptance in 210 countries and territories around the world.

Banks that have no foreign transaction fees on at least some credit card purchases, ATM withdrawals and debit card transactions include Capital One and HSBC.

Use credit cards

Many big issuers offer credit cards with low mark-up exchange rates. These cards come with many rewards points and benefits. For example, The Platinum Card® from American Express entitles you to 3x Membership Reward points on every transaction you make abroad.

Not all credit cards charge a foreign transaction fee, but many do. To find out if your card does, check the “fees” section of the terms and conditions for your card.

Use a different payment method.

Merchants often charge convenience fees or surcharges when credit cards aren't a standard payment method. If you have a rent, utility or tax bill, consider paying by check or electronic transfer instead.