Here's why overseas transactions with credit cards should be avoided
Updated : August 29, 2018 03:03 PM IST
Whether online or offline, always keep in mind that using credit cards abroad attracts currency and network-based charges, such as mark-up fees or foreign currency transaction fee, cash advance fees, which is charged as per the transaction’s value including the mark-up charges applicable.
Lenders also charge a foreign transaction charge. This can range from anywhere between 1.5 -3.5 percent of the total transaction. While this may not seem a lot for smaller transactions, for big ones these can run into thousands of rupees.
Cash withdrawals can also cost you anywhere between 1-4 percent fee in addition to the standard cash withdrawal rate for your credit card. So, it makes sense to carry cash or a travel card whose charges are muted compared to your card.
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