When visiting a foreign country, you can conveniently use your American credit card for most goods and services. The part that's not so convenient? Each purchase usually comes saddled with a foreign transaction fee, or what used to be called a currency conversion fee. Foreign transaction fees vary between bank, issuer, card typeIt's wise to find out what the fee for your card is before you leave the country so you can budget your spending abroad. Unfortunately, that's easier said than done.
In 2006, Visa, MasterCard and Diners Club were slapped with a $336 million settlement for hiding foreign transaction fees. Customers who used those cards abroad between 1996 and 2006 were not notified they were being charged such fees, and a court declared the consumers were entitled to refunds.
After the settlement, some issuers chose to reveal the foreign transaction fees in their cards' terms and conditions. For others, they remain absent. Tracking them down often requires a call to customer service or the corporate office, and even then, you're not guaranteed an answer.
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