Hidden credit card fees on foreign purchases

american-express-89024_640It seems like a good idea to pay in U.S. dollars when you travel abroad because you know exactly how much you will be paying.

However, according to an article in the Washington Post, there is a new cost associated with these transactions.

If you are given an option to pay in U.S. dollars instead of the local currency, you may be paying a hidden conversion fee called DCC, dynamic currency conversion.

Most credit card companies charge a fee when you make a purchase in a foreign currency. For example: you pay for a meal in Paris and use your credit card. When you get your credit card bill, it shows a charge of usually 1-3% for the currency conversion.

However, some credit cards don’t charge that conversion fee. So if you opt for paying in U.S. dollars, you might unknowingly be paying this DCC fee.

Here is a link to the complete article: http://articles.washingtonpost.com/2013-05-16/lifestyle/39303655_1_dcc-conversion-currency

Just another ‘know before you go’ tip for you.



Copyright © Margaret Owen, Cruise Pro