In today's interconnected world, international travel and online shopping have become commonplace. However, hidden costs such as international transaction fees can quickly add up, impacting your financial well-being. This article aims to shed light on what international transaction fees are, why they matter, and provide practical tips on how to avoid them.
When using your card for purchases outside your home country or making online transactions in a foreign currency, you may encounter international transaction fees. These fees, typically charged by card issuers or banks, are a percentage of the transaction amount and can range from 1% to 3%. While seemingly small, they can accumulate significantly, especially for frequent traveller's or individuals who frequently engage in cross-border online shopping.
International transaction fees can take a toll on your finances in several ways. Firstly, they add an extra expense to your purchases, effectively increasing the overall cost of the transaction. Secondly, if you frequently travel or make international online purchases, these fees can accumulate and impact your budget over time. Understanding how to minimise or avoid these fees altogether is crucial for saving money and optimising your financial resources.
International transaction fees can be a hidden drain on your finances, but armed with the right knowledge and strategies, you can minimise or even eliminate them. By choosing a card like Yondr without foreign transaction fees, notifying your bank about your travel plans, paying in local currency, exploring alternative payment methods, and researching merchant policies, you can save significant amounts of money on international transactions. Stay informed, plan ahead, and take proactive steps to avoid these fees, ensuring your financial resources are used efficiently while enjoying seamless international experiences.
Things you should know
YONDR MONEY Pty Ltd ABN 11625732569 holds AFSL number 545391 and is authorised to provide general financial product advice to retail and wholesale clients. Any advice you receive from Yondr is general and does not take into account your objectives, financial situation or needs. You should consider whether the advice is suitable for you and your circumstances. Before you make any decision about whether to acquire a certain product, you should obtain and read the relevant product disclosure statement.