What is a foreign transaction fee?

by cedrick.casper , in category: Banking and Credit , a year ago

What is a foreign transaction fee?

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1 answer


by tavares , 10 months ago


A foreign transaction fee is a charge imposed by credit card companies or banks for purchases made in a foreign currency or transactions processed by a non-U.S. merchant. When you use your credit card internationally, your credit card company may charge a percentage of the transaction amount as a foreign transaction fee. This fee is typically added on top of the actual purchase price and can range from 1% to 3% of the transaction amount. The purpose of this fee is to cover the costs associated with converting currencies, processing international transactions, and managing the associated risks.