Discover Credit Card Foreign Transaction Fees: A Comprehensive Guide

Introduction

Are you planning an international trip? It's important to be aware of the foreign transaction fees (FTFs) that may apply when using your Discover credit card abroad. These fees can add up quickly, so it's crucial to understand how they work and how to avoid them.

What is a Foreign Transaction Fee?

A foreign transaction fee is a charge that is applied to purchases made with a credit card outside of the card's issuing country. The fee is typically a percentage of the transaction amount, ranging from 1% to 3%.

Discover's Foreign Transaction Fee

Discover charges a 3% foreign transaction fee on all purchases made in a currency other than U.S. dollars. This fee is applied to both credit and debit card transactions.

How to Avoid Foreign Transaction Fees

There are several ways to avoid foreign transaction fees when using your Discover credit card abroad:

• Use a credit card with no foreign transaction fees. There are a number of credit cards that offer no FTFs. These cards can save you a significant amount of money if you travel frequently.
• Use a debit card. Debit cards typically do not charge foreign transaction fees. However, it's important to be aware that you may be charged ATM fees when using a debit card abroad.
• Pay in local currency. When making purchases abroad, try to pay in the local currency. This will avoid the foreign transaction fee that is applied to purchases made in U.S. dollars.
• Use a travel money card. Travel money cards are prepaid cards that can be used to make purchases in foreign currencies without incurring foreign transaction fees.

Impact of Foreign Transaction Fees

Foreign transaction fees can have a significant impact on your travel budget. According to a study by NerdWallet, travelers who pay with credit cards that charge foreign transaction fees spend an average of $200 more per trip than those who use credit cards with no FTFs.

Conclusion

Foreign transaction fees can be a costly inconvenience when traveling abroad. By understanding how FTFs work and how to avoid them, you can save money on your next trip.

Frequently Asked Questions

• Why does Discover charge a foreign transaction fee?
  Discover charges a foreign transaction fee to cover the cost of processing transactions in other currencies.

  

• Can I get a refund for foreign transaction fees?
  No, Discover does not offer refunds for foreign transaction fees.

• How can I avoid foreign transaction fees when using my Discover credit card?
  There are several ways to avoid foreign transaction fees when using your Discover credit card, including using a credit card with no FTFs, using a debit card, paying in local currency, and using a travel money card.