A credit card can add a lot of convenience to your international trips. It saves you from the burden of carrying cash, which is not just inconvenient but also unsafe. Also, now that credit cards are being specifically designed to take care of all your travel needs including travel insurance, there is no reason to not use one while travelling and shopping abroad.
However, there is a price for all that convenience. Card issuers charge a foreign transaction fee when you purchase something overseas or when you make a payment that is processed by a non-Singapore bank. This fee that is applicable to your card is always mentioned in its terms and conditions. Most often, this fee is in the range of 2-3% and may vary depending on the card issuer and the payment network. A foreign transaction fee comprises three different types of charges that generally apply to credit cards:
As of now, there is no card that doesn’t charge any foreign transaction fee. However, there are some card issuers that do not charge any admin fee. This means that your foreign transaction fee will be reduced to just the payment network fee and the dynamic currency conversion fee (if applicable).
One such card that currently doesn’t charge any admin fee is CIMB Visa Signature Credit Card. With this CIMB credit card, you will only have to pay 1% fee as charged by Visa or Mastercard for your foreign transactions. The dynamic currency conversion fee applicable to this card is also 1%.
Know which are the best credit cards to use when moving to foreign countries from singapore, shopping in foreign currencies etc. Read more...