On the other hand, convenience (as with other things) has a price.
With credit card use, we need to consider several hidden charges, especially if you use your credit card overseas.
When you pay for your bill, you will normally see the local currency. The credit card company will then convert the charge to US$ or Euro (depending on where your card is issued). This may take a few days after the purchase, depending on when the merchant submits the charge. The exchange rate could be less favourable or it could be better.
The price: Most credit card companies charge a currency conversion fee which will be added to your bill with EACH of your foreign purchase. It is just about the same amount as when you buy traveller’s checks). It should be around 1%.
Credit cards allow you to take money out of Automated Teller Machines.
The price: Like when back home, you will be charged a transaction fee. And then, there’s the cash handling fee of around 1.5%. In addition, you will charged $2 every single time you use the cash machine.
So, when using your credit card, you would have to consider transaction fee charges, exchange rate losses and whatever else some credit card companies think should be charged.
And that is where the difference lies. Some credit cards have better terms. It is best to check which credit card you should use, especially if your job entails a lot of travelling abroad.
Thinking of getting a better one to serve your needs? Compare before you sign that dotted line. Moneysupermarket can help you compare 300 credit cards and find the best one, based on your requirements.
Oh yea, don't forget to consider airline issued credit cards for mileage advantage.
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