![]() ![]() (Screenshot courtesy of Chase) Foreign transaction fees vs. Instarem has no affiliation or relationship with products or vendors mentioned.The fees for the Chase Freedom Unlimited. All details are accurate at the time of publishing. ![]() Sign up via the Instarem app and get your virtual card instantly! It’s totally free.ĭisclaimer: This article is intended for informational purposes only. With amaze, you get better rates with no extra fees charged, enjoy fantastic FX rates with every overseas purchase and earn InstaPoints on FX spends and redeem them as cashback or discounts on overseas money transfers. If you notice that option is not made available to you and you’re still charged the amount, you can dispute with your bank and request a chargeback. If there is one biggest takeaway from this article is that you have the option to skip the DCC fees.Īt the point of payment, always ask to pay in foreign currency and merchants will have to abide by your decision. ![]() Pay in foreign currency with your credit card It may not be the most ideal method, but the assumption here is that higher cashback can cover a part of the foreign transaction fees. With that in mind, pick a cashback credit card that offers higher rebates than 3.25%. The typical foreign transaction fees are between 2.5% – 3.25%. Choose a cashback card that offers higher rebates The only caveat is that you are probably at the mercy of the exchange rates in money changers. ![]() Use cash to pay for smaller transactions such as food, shopping and entertainment. So, leave the heavy lifting like hotels, car rentals or expensive shopping to your credit card. If you are paying by cash, there won’t be the option for dynamic currency conversions.īut we can’t be carrying that much cash all the time when we travel. If you plan to go overseas with your credit card here are four ways to avoid paying those extra fees: Pay by cash #Foreign transaction fee how to#You Might Also Like To Read: How to Dispute Credit Card Charges made on Instarem’s amaze How to avoid paying more DCC and FX rates? And the cost breakdowns are not shown upfront to you.īy agreeing to DCC, you will be paying more than SGD138.46 for a USD100 product. The exchange rate offered is usually unfavorable. Don’t get too excited about skipping the conversion gymnastics in your head. And you will have the option to do so at the point of payment. It’s a charged service to allow merchants to convert to your local currency. What are Dynamic currency conversion fees? Don’t underestimate this, as small amounts do add up. You’ll be paying $4 more for the product. You Might Also Like To Read: Meet Instarem’s amaze card: its features, benefits, and how you can get one How are they calculated?Īssuming you bought a product at USD100, here’s what you’ll be paying: Product Price On average, most banks charge foreign transaction fees that range between 2.5% – 3.25%. You will find both fees combined and presented as one in your credit card bill. Networks like Mastercard and VISA take up to 1% of the foreign transaction fees* for major Singapore banks like OCBC, DBS, and UOB. This extra money is made up of two parts: Network fee and issuing bank fee. Translation: Extra money to cough out for foreign currency payment. Now that we have all our parties addressed, let’s look at each definition. You, the buyer of the product or services. Upon accepting the offer, you will be charged a dynamic currency conversion fee. The business that sells a product or services to you.Īt the point of payment, merchants will offer the option to convert to your local currency. Payment solution providers: They provide merchants with the platform to offer dynamic currency conversion fees.Įxamples are Global Blue, First Data and Euronet Worldwide. Bank fees are a part of the foreign transaction fees. Their network fees play a part in the foreign transaction fees.Įxample: Visa, Mastercard, American Express and UnionPay Banksįinancial institutions that issue your credit cards. Payment gateways that provide infrastructure to banks. Let’s break it up into a few parties involved and how they get a cut out of your foreign expenses. Before we get confused with the terms…let’s understand the parties involved They might snowball and eat into your travel expenses. As we move to an endemic phase, it’s not surprising as more people are starting to catch the wanderlust bug.īefore you go big on your travel spending, here are two important key factors you need to understand:ĭon’t underestimate these fees. ![]()
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