Are Foreign-Transaction Fees Going Away?
As card issuers fight to retain or gain customers, some are eliminating the number of fees associated with a credit card transaction, reports USA Today.
CreditCards.com reviewed 100 cards and found that the number of fees dropped from 613 to 593 in a year’s time. One of the main fee eliminations was foreign-transaction fees, which typically add $3 to a customer’s bill.
An industry analyst at CreditCards.com said that as the Great Recession ends, people are more willing to spend and banks are more willing to lend. Plus, there are more credit cards available than ever, making the market increasingly more competitive.
Cedit card companies are taking additional measures to retain and gain customers. Some have stopped charging customers for a paper copy of a past statement, for example. Today, travelers often get reward points and more Americans travel abroad, which is why foreign transaction fees have been a focus.
Even though foreign fees are meant to cover conversion expenses and fraud risk, card issuers usually make that money up from balance interest and fees charged to merchants, Ben Woosley, president of information and review website CreditCardForum, told USA Today.
These fees can even be a burden for those simply purchasing items from an international merchant. Woosley says his team recommends people carry at least one credit card that doesn’t charge the foreign transaction fee just to be safe.
Contact i3 Merchant Solutions online or call 1-800-621-8931.
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