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Credit
Cards Overseas Transaction Fees
Credit cards typically charge 2.5% to 3.5% for overseas transactions
in a different currency. These transaction fees are usually lower
then the merchant's exchange rate. Hence, it makes sense to charge
your purchases in a foreign currency when abroad and use the credit
card's exchange rate instead of the merchant's exchange rate. As
a general rule of the thumb, MasterCards and Visa Cards have similar
transction fees while American Express Cards have the highest transaction
fees.
Benefits for Using Credit Cards Overseas
Despite the transaction fees, banks often tangle attractive cashbacks
for using credit cards abroad. These cashbacks can sometimes more
than offset the transaction fees involved. To make things easier
for comparison, the table below will summarise the rate of cash
rebate for using various cashback credit cards abroad as well as
the minimum requirements needed to qualify for the cashback.
Credit Cards Cash Rebate for Overseas Spending Comparison
Table
Best Cashback Credit Card for Overseas Spending
The flexible UOB One Card
gets our vote for the best credit card for overseas travel. It is
strictly-speaking not a cashback credit card for overseas spending
as it awards a potential cashback of 5% for everyday purchases.
The 5% cashback comes with conditions such as three minimum purchases
per statement period and a minimum monthly spend of $2000 for all
three months in a quarter. Despite the conditions, failure to spend
the minimum monthly spend will still earn you 3.33% cashback (which
is still higher than the other above listed cards) provided you
meet the minimum monthly spend of $500 for all three months in a
quarter. Additional perks include enrolment in the SMART$ rebate
programme, a huge rarity among credit cards that already earn cash
back in the first place.
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Reviews or Comments (2)
Very useful for travellers.
Just what I was looking for. Not easy to find an extensive list of cards for overseas spend.