The Delta/AmEx credit card does not add a foreign transaction fee for international purchases as of May 1, 2014, and I recently noticed the United/VISA credit card falls into this free category as well. Nevertheless one of my credit cards retains a 3% foreign transaction fee. Is it my imagination or are more and more credit card companies dropping foreign transaction fees with the end in sight?
Posted by
Tresana, Highlands Ranch, CO, USA
23548 posts
The credit card business is competitive. If they think it gives them an advantage, then they will drop the fees. But they need to make money somewhere so they may pick it up somewhere else. I do think recently that the trend has been to drop the foreign transaction fee. It is a business. For Am Ex to drop the fee is not that big a deal since the card is not that widely accepted in Europe. The only reason I have the Delta/Am Ex is the free checked luggage. Never use the card in Europe or even take it for that matter.
Posted by
Lakewood, Colorado
19233 posts
They are dropping the foreign transaction fee to get you to use the credit card, rather then cash, because they still get 4% or more from the merchant, who passes that cost on to you. You still pay in the end.
Note, this is for credit card transactions, where they make a commission from the merchant. However, I have found that, in Germany, at least, places that don't take credit cards have prices that are lower. Your best bet is still to pay cash that you get from an ATM.
Posted by
Virginia
618 posts
Unless my memory fades, don't those 2 CC have a high annual fee? So maybe that is the reason they don't charge you transaction fees. They make their money one way or another.
Posted by
Washington, DC
884 posts
Or maybe it's the airline credit cards that are dropping the fees because they most likely cater to a traveling clientele. I also recall that they have annual fees, so the benefits may be outweighed. I still like my Capital One card for the no foreign transaction option.