Bank Of America Travel Rewards Currency Conversion Fee
Bank of America is one of the largest banks in the United States, offering a range of financial products and services to its customers. One of its key offerings is the Bank of America Travel Rewards credit card, which is designed for frequent travelers looking to earn rewards on their purchases.
However, many customers are unaware of the currency conversion fee that the bank charges when using their credit card for international purchases. In this article, we will provide an overview of the Bank of America Travel Rewards currency conversion fee, how it works, and what you can do to avoid it.
What is the Bank of America Travel Rewards currency conversion fee?
The Bank of America Travel Rewards credit card is designed for travelers who want to earn rewards on their purchases. One of the key benefits of the card is that it does not charge foreign transaction fees on purchases made outside of the United States.
However, the bank does charge a currency conversion fee when you make a purchase in a foreign currency. This fee is typically 3% of the total transaction amount and is charged in addition to the exchange rate for the currency conversion.
For example, if you make a purchase of $100 in Europe using your Bank of America Travel Rewards credit card, the bank will charge you a currency conversion fee of $3 (3% of $100) in addition to the exchange rate for converting your dollars to euros.
How does the Bank of America Travel Rewards currency conversion fee work?
The Bank of America Travel Rewards currency conversion fee is applied automatically to all foreign currency transactions made with the credit card. The fee is calculated as a percentage of the total transaction amount and is charged in addition to the exchange rate for the currency conversion.
The exchange rate used for the currency conversion is based on the current market rate, which is determined by the bank's card processor. This rate can fluctuate over time, so the amount you are charged for the currency conversion fee may vary depending on when the transaction was made.
How to avoid the Bank of America Travel Rewards currency conversion fee?
If you use your Bank of America Travel Rewards credit card for international purchases, there are ways to avoid the currency conversion fee. Here are a few tips:
- Use a credit card that does not charge foreign transaction fees: There are several credit cards available that do not charge foreign transaction fees, which can help you avoid the Bank of America Travel Rewards currency conversion fee.
- Pay in local currency: When making a purchase in a foreign country, you may be given the option to pay in your home currency or the local currency. Always choose to pay in the local currency to avoid the bank's currency conversion fee.
- Use cash: Another way to avoid the currency conversion fee is to use cash for your purchases when traveling abroad. This can also help you stick to a budget and avoid overspending on your credit card.
Conclusion
The Bank of America Travel Rewards credit card is a popular choice among frequent travelers, but many customers are unaware of the currency conversion fee that the bank charges for using the card for international purchases. To avoid this fee, consider using a credit card that does not charge foreign transaction fees, pay in local currency when possible, or use cash for your purchases when traveling abroad.