So after all the search and lengthy discussions, you have finally decided on your Europe trip destination and lodging. While others are busy planning out an itinerary and shopping destinations, you as a decision maker are carefully looking at how to spend wisely and make the most out of your trip. Let us help you out a bit with this important task to avoid spending unnecessarily and be in control of your finances.
First thing first, choose the card that suits your expenditure plan for the trip. To prevent any surprises on your credit or debit card use abroad, be well informed in advance on different kinds of charges that will apply to transactions. There are three major types of costs namely,
- Foreign transaction fee – Your card issuing bank (SBI, HDFC, BOB, ICICI, PNB, etc.) charges transaction charge on your usage of card abroad, which is roughly 2.5-3.5 % of total amount.
- Foreign currency conversion fee – Apart from the card issuing bank, network service providers such as Visa or Master Card also charge currency conversion charges on your purchases abroad in the range of 1-2% approximately. This conversion fee does not accurately relate to the currency conversion rates for that particular date. Your bank merchant will forward the transaction details to Visa or Master card in 1-2 days post your purchase date and after that, Master Card or Visa will calculate the conversion fees on the conversion rates one day in advance to the transaction date. These rates apply to your transactions throughout the day.
- Cash Advance fee – We do not recommend cash withdrawals abroad for the simple reason that they invite two different charges – standard cash withdrawal rates on your credit or debit card as well as international cash withdrawal fee.
If you are still baffled as to how to predict additional charges that will reflect on your statement, you can read about foreign transaction fees and cash advance fee on your bank’s website. One can always speak to customer care centre to know more about your credit card or debit card offers and fees while traveling abroad. You could also refer to the data on foreign currency conversion fee available on Visa and Master card’s websites.