Mon Dieu! Credit card issuers broadening foreign transaction fees

Lita Epstein
Updated

You may find out that your next online order will cost you more than you expect. That's because credit card issuers have added to or expanded their foreign transactions fees to include transactions processed outside the U.S.

Since February, Discover, Citigroup, Simmons and Bank of America expanded their fees, according to Bill Hardekopf of LowCards.com. Prior to this change the 3% fee was charged primarily when you traveled and bought something outside the country. With the new rules the foreign transaction fee now includes all transactions made or processed outside of the United States.

The big problem with this fee is that you won't know you're being charged the fee until the transaction shows up on your credit card bill. So what should watch out for when buying something online:

  • If the online merchant is based in another country, you could end up paying 3% more. Check carefully to be sure you're being billed in the U.S.

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