When the person travels abroad there is no way he can pay with card or with cash easily. In the world of finance, there are many regulations that limit person’s spending ability abroad. Each time the client wants to take off money or to exchange cash into local currency, he loses money.
An interesting question is whether the client can withdraw the cash from the credit card abroad at zero cost. It is not easy. The only way to do it is to find the bank that is in the partnership with the issuing bank and withdraw there. Though, it does not give 100 percent guarantee the client won’t be charged any other type of commission.
What charges exist in financial world
When a client goes abroad the bank charges several types of fees for the card usage and cash withdrawals from credit cards. Here are some of them:
- Foreign transaction fee. This fee can be quite high, but it is charged only when a person pays by the plastic.
- Bank commission. This is the fee that is paid when the client withdraws cash from his credit plastic.
Some people think they can avoid paying commission when they withdraw cash if they take money from credit plastics. It is a misperception. Though, there is a way to diminish such a fee or even not to pay it at all.
Avoid bank charge if you take money from the credit plastic abroad
Whatever type of credit plastic you have, the bank will take the commission for cash withdrawal. Such a commission will be particularly high if the client withdraws money in the bank different to the credit plastic issuing bank. That will most probably be the case, as the majority of people keep money in national financial institutions.
Such institutions rarely have ATMs overseas. Usually, even big American financial institutions have only small offices abroad. So, the chance the client will pay the commission is very high. The commission can get up to 3 %.
It is important to understand that if a client withdraws even 100 euro, he will still be charged 3 percent. So, if you decide to get cash abroad, it is better to withdraw a large sum and pay 3% once.
How to avoid paying the commission
The best way to avoid paying the commission is to find the banks that entered into partnership with the issuing banks. Then, the probability that commission won’t be charged is bigger. But even then the client can’t be sure.
Using money abroad is always a pain. Though, the banks started to work on elimination of this problem. Many banks in American developed secured credit cards that have no transaction fee charges. It is very advantageous for the clients. It is the first sign that soon commission fees will be also eliminated.