The Bank of America Premium Rewards credit card exchange rate is Visa’s exchange rate on the date you make an international purchase. Visa exchange rates change on a daily basis, and they update these rates each day on their website.
While credit card exchange rates normally also include foreign transaction fees, the Bank of America Premium Rewards credit card does not charge foreign fees. This means the Bank of America Premium Rewards credit card will save cardholders 1.44% on purchases with international merchants, compared to the average credit card offer. As long as cardholders avoid dynamic currency conversion, the exchange rates they’ll pay on international spending with this card will be much lower than those they’d get from converting cash with banks, credit unions, or airport currency exchange services.
No foreign fee Bank of America cards clearly are a better choice for international spending than the ones with a 3% surcharge for everything you buy abroad. That’s actually one of the highest foreign fees on the market. So international shoppers need to be careful when picking a Bank of America credit card and perhaps consider cards from other issuers too.
Bank of America foreign transaction fees info:
Some Bank of America credit cards have 3% foreign transaction fees.
Other Bank of America credit cards have 0% foreign transaction fees.
Foreign transaction fees can apply when you travel abroad or make online purchases from foreign merchants.
At 3%, the Bank of America foreign transaction fee is too steep for anyone planning to make international purchases. But the cards that charge it are meant more for everyday spending than travel. The good news is there are a handful of foreign fee-less alternatives.
Best Bank of America credit cards with no foreign transaction fees:
Keep in mind that more and more cards from other issuers are shedding their foreign fees. So, if you’re not loyal to Bank of America, you can check out our editors’ latest picks for the best no foreign transaction fee credit cards to weigh your options.
Taking the following credit-card precautions will help you save money and avoid unnecessary hassle while using your credit card abroad.
Get a no foreign transaction fee credit card. Do this before booking flights, hotels, etc. Foreign transaction fees will be assessed on any purchase made through a foreign merchant, even before you leave the U.S.… read full answer
Call your credit card company. Most credit card companies require you to notify them of international travel plans. If you don’t, your account may be suspended due to suspicions of fraud. Capital One and American Express are the only major issuers that automatically detect when you’re traveling.
Know your info. Write down your account number as well as your credit card company’s phone number, and keep this information somewhere safe (not in your wallet). If your card gets lost or stolen, you’ll need both to get a replacement.
Don’t forget your ID. Some countries may require identification to authorize a U.S. credit card transaction. So don’t forget your passport when you go shopping abroad.
Pay in the local currency. Decline any merchant’s offer to convert prices into U.S. dollars. This could be a trick known as dynamic currency conversion, which merchants often use to assess high exchange rates and line their pockets.
Yes, using a credit card internationally is the best way to go about paying for things when you’re abroad. It’s safer because you don’t have to carry as much cash, and all major credit card companies offer $0 fraud liability guarantees. Using a credit card internationally also gets you the … read full answerbest currency exchange rates, and it’s a great opportunity to earn rewards.
Here are some tips for using a credit card internationally:
Full protection from unauthorized charges: Credit cards allow you to minimize the amount of cash you carry abroad and provide the opportunity to earn rewards. They also come with $0 fraud liability.
Avoid foreign transaction fees: Many credit cards come with foreign transaction fees when you buy from internationally-based merchants. These fees are typically 1%-3% of the purchase amount. If you go abroad, you should get a card with no foreign transaction fee.
Set travel alerts: Many credit card companies ask that you set a “travel alert” before leaving the country. It’s not mandatory. But if you don’t, they might suspect that international purchases are fraud and suspend your spending privileges until you notify them otherwise.
Wider acceptance and more protection with chip cards: You’ll have a smoother experience using a credit card internationally if it’s a “chip” card. Many unmanned payment terminals abroad will not take cards that have only a magnetic stripe. And merchants may even give you a hard time if your card doesn’t have a chip.
Refuse Dynamic Currency Conversion: Choose to pay in the local currency. Merchants may offer to let you pay in U.S. dollars, a practice known as Dynamic Currency Conversion. But it’s often an excuse to use an unfair exchange rate (often as much as 7% higher) and overcharge you.
Avoid cash advances: Credit card cash advances allow you to get cash from your card’s credit line. However, cash advances are subject to hefty fees and interest rates that accrue immediately, with no grace period. So it’s best to avoid them outside of emergency use.
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