Bank Of America Travel Card Foreign Transaction Fee
Traveling abroad can be an exciting and enriching experience, but it can also come with unexpected expenses. One of these expenses might be the foreign transaction fee that some credit cards charge. If you're a Bank of America customer and planning to use their travel card for your trip, you might wonder how much you'll have to pay in foreign transaction fees. In this article, we'll give you a comprehensive guide to Bank of America travel card foreign transaction fees, so you can plan your trip budget accordingly.
What is Bank of America Travel Card?
First, let's clarify what Bank of America Travel Card is. It's a type of credit card designed for frequent travelers who want to earn rewards and perks while they spend on travel-related expenses. Bank of America Travel Card comes in two versions: Bank of America Travel Rewards Credit Card and Bank of America Premium Rewards Credit Card.
The Bank of America Travel Rewards Credit Card is a basic travel card that allows you to earn points for every purchase you make. You can redeem these points for travel-related expenses such as flights, hotels, and rental cars. The Bank of America Premium Rewards Credit Card, on the other hand, is a premium travel card that offers more perks and benefits, such as airline incidentals credit, airport lounge access, and higher earning rates for travel-related expenses. Both cards have no foreign transaction fees for purchases made outside the US.
What is Foreign Transaction Fee?
Before we dive into Bank of America's foreign transaction fees, let's understand what foreign transaction fee is. A foreign transaction fee is a fee charged by credit card issuers for purchases made outside the cardholder's country of residence. This fee is usually a percentage of the transaction amount, typically around 3%.
The foreign transaction fee may apply not only to purchases made in foreign currencies but also to purchases made from foreign merchants in your home currency. For example, if you use your US credit card to buy a product from a UK online store that prices in US dollars, you may still be charged a foreign transaction fee if the merchant's processing bank is located outside the US.
Bank of America Travel Card Foreign Transaction Fees
As mentioned earlier, Bank of America Travel Card has no foreign transaction fees for purchases made outside the US. This means that, if you use your Bank of America Travel Card to make purchases in foreign currencies or from foreign merchants, you won't be charged any extra fees on top of your purchase amount. This applies to both Bank of America Travel Rewards Credit Card and Bank of America Premium Rewards Credit Card.
However, there are some exceptions to this rule. If you use your Bank of America Travel Card to withdraw cash from an ATM abroad, you will be charged a cash advance fee and an ATM fee, in addition to the foreign currency conversion fee. The cash advance fee is usually a percentage of the withdrawal amount, while the ATM fee may vary depending on the ATM operator. Bank of America charges $5 per withdrawal plus 3% of the withdrawal amount for cash advances made outside the US or in a foreign currency, whichever is greater.
How to Avoid Bank of America Travel Card Foreign Transaction Fees
If you want to avoid foreign transaction fees while using your Bank of America Travel Card, here are some tips:
- Use your Bank of America Travel Card for purchases in local currencies instead of your home currency.
- Use your Bank of America Travel Card to pay for purchases at merchants that don't charge dynamic currency conversion (DCC). DCC is a service that allows merchants to convert your foreign currency purchase into your home currency at the point of sale, but it often comes with a high exchange rate and additional fees.
- Avoid using your Bank of America Travel Card to withdraw cash from ATMs abroad. Instead, bring enough cash or use a debit card that doesn't charge foreign transaction fees for ATM withdrawals.
- Consider getting a credit card that has no foreign transaction fees and better rewards for travel-related expenses, such as Chase Sapphire Preferred or Capital One Venture.
Conclusion
Bank of America Travel Card is a great option for frequent travelers who want to earn rewards and perks while avoiding foreign transaction fees for purchases made outside the US. However, if you plan to use it for cash advances or withdraw cash from ATMs abroad, be aware that you will be charged additional fees. To avoid foreign transaction fees, always choose to pay in local currencies, avoid DCC, and consider getting a credit card with no foreign transaction fees and better travel-related rewards.
