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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 UOB Visa Signature
Card gets our vote for the best credit card for overseas travel.
The main reasons are due to the card having a low minimum requirement
of S$1,000 overseas spend to qualify for the high 5% cash rebate
which will more than offset any overseas card usage transaction
fees. Lets also not forget that the 10X UNI$ is also equivalent
to 4 air miles per $1 overseas spend, which helps the card to a
double accolade of also being the best mileage Credit
Card for Overseas Spending.
Comments on Best Credit Card for Overseas
Spending Comparison
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