Traveling is a great way to explore the world and experience new things. However, there is one downside to traveling abroad that can quickly drain your budget: foreign transaction fees. The Bank of America Travel Rewards foreign transaction fee can add up quickly, and can even put a damper on your entire travel plan. Fortunately, there are ways to avoid this fee and enjoy your experience abroad without worrying about added costs.
In this article, we’ll discuss how to avoid the Bank of America Travel Rewards foreign transaction fee so you can enjoy your travels with more money to spend on souvenirs and experiences. We’ll look at the best ways to pay for foreign purchases, the different ways to set up a foreign exchange account, and how to move funds to cover international payments.
Understand the Foreign Transaction Fee
When you use a bank card outside of the United States, a foreign transaction fee may be charged to your account. Bank of America’s Travel Rewards card has a foreign transaction fee of 3% of the total transaction amount. This fee is charged when you purchase goods or services in a foreign currency, or when you use your card for international purchases or transactions.
It is important to understand how the foreign transaction fee works and what you can do to avoid it. Below are some tips on avoiding the Bank of America Travel Rewards foreign transaction fee:
- Use a card that does not charge a foreign transaction fee: The best way to avoid the foreign transaction fee is to use a card that does not charge a foreign transaction fee. Numerous credit card companies offer zero foreign transaction fees on their cards.
- Pay in the local currency: Another way to avoid the foreign transaction fee is to pay for purchases in the local currency at the point of sale. By doing this, your purchase will be charged in the local currency instead of U.S. dollars.
- Look for ATMs with low foreign transaction fees: If you are traveling abroad and need to withdraw cash, look for ATMs with low foreign transaction fees. Many banks offer a flat fee for customers who withdraw cash from foreign ATM machines.
- Use digital wallets or prepaid cards: Digital wallets and prepaid cards can also be used to avoid foreign transaction fees. Both of these payment methods allow you to transact in the local currency of the country you are visiting, avoiding the Bank of America Travel Rewards foreign transaction fee.
Understanding the Bank of America Travel Rewards foreign transaction fee can help you avoid expensive international transaction costs. By following the tips above, you can travel abroad without worrying about the foreign transaction fee.
Maximize the Benefits for a Cashless Trip
If you plan on taking a trip abroad, it can be a great opportunity to maximize the travel rewards offered by your Bank of America travel rewards card. However, when traveling abroad, you might be subject to foreign transaction fees — which could adversely affect your overall travel budget.
Luckily, there’s a way to avoid these fees altogether and maximize the cashless benefits of your Bank of America travel rewards. Here are a few tips on how to minimize foreign transaction fees and get the most out of your cashless trip.
1. Pay for Travel Expenses with Your Bank of America Travel Rewards Credit Card
Taking your Bank of America Travel Rewards credit card with you on your trip can be one of the best ways to save money. Not only will you be able to use the card to purchase meals, accommodations, and other travel expenses, but you’ll also be able to avoid foreign transaction fees by using the card to pay for purchases in the country of your destination.
2. Always Use Local Currency
As a general rule, it’s recommended that you use the local currency when making purchases in a foreign country. This may require checking exchange rates before you leave, as well as withdrawing a bit of local currency, to ensure that you have enough money when needed. It’s best to avoid exchanging money at airports or hotels, as this will generally result in a poor exchange rate.
3. Look for Partner Merchants That Accept Bank of America Travel Rewards Credit Cards
Bank of America has partnered with a number of merchants in certain countries that accept travel rewards credit cards. This means that you can use your Bank of America card to make purchases without paying foreign transaction fees. Consider researching some of these partner merchants before you leave for your trip, as this can help you maximize your cashless benefits.
4. Get Cash Back at an ATM
In some cases, it may be necessary to withdraw foreign currency from an ATM. To maximize your cashless benefits, look for ATMs that are associated with Bank of America — as these will waive the foreign transaction fees. Additionally, it’s a good idea to withdraw larger amounts, as many ATMs charge a fee for smaller withdrawals.
5. Make Purchases with PayPal
Making purchases online can be a great way to avoid foreign transaction fees. Many websites and services accept PayPal as a form of payment, so you can use the funds in your Bank of America Travel Rewards Credit Card to purchase items without paying the extra fee. This can be one of the easiest and most cost-effective ways to save on foreign transaction fees.
By following these tips, you can ensure that you’re making the most of your cashless trip and maximizing the benefits of your Bank of America travel rewards. With careful planning, you can save money and enjoy your travels without worrying about foreign transaction fees.
Research Your Credit Card Options
When traveling abroad, foreign transaction fees can add up quickly. Using Bank of America’s Travel Rewards credit card for foreign purchases often results in a 3% fee. In order to get the absolute best deal on foreign purchases, it’s important to research what credit card options are available.
Before selecting a new credit card, make sure to consider the following:
- Fees associated with the credit card use for foreign purchases.
- Rewards programs offered for qualifying purchases.
- Length of time it takes to receive rewards.
- Credit limit.
- In-network global ATMs or banks from which cash may be withdrawn.
Research available credit cards and decide which option is right for you. Consider annually-recurring fees, signing bonuses, or other travel-related rewards.
When selecting a new credit card, it’s important to read all the terms and conditions beforehand. Pay close attention to the card’s annual fees, foreign transaction fees, and any rewards associated with the card. Companies like Visa, MasterCard, Discover, and American Express all offer credit cards with no foreign transaction fees.
Be Prepared for The Unexpected
When traveling, it’s always important to be prepared for the unexpected. There might be an unexpected fee, a sudden rise in costs, or a surprise expense that is unavoidable. You can prepare yourself for such occasions by allocating a portion of your budget for unforeseen expenses, as well as by researching fees and other applicable costs in advance.
As such, research should be done into the Bank of America Travel Rewards Foreign Transaction Fee. Knowing the fee amount and where it applies is necessary for avoiding additional fees and making sure you stay within your budget. Here are some tips on how to avoid it:
- Check your bank statement for any foreign transaction fees. Oftentimes, the Bank of America Travel Rewards Foreign Transaction Fee can just be a one-time charge, but regular fees may be charged if you frequently use your card abroad.
- Bring local currency with you wherever you go. Exchange rates and fees for using foreign cards can vary drastically. Knowing the exchange rate before you leave can help you save money.
- Use a local card or prepaid card. Sometimes the fees associated with using your Bank of America Travel Rewards card abroad can be too high. In these cases, it may be cheaper to take cash or use a local card or prepaid card.
- Get a credit card with no foreign transaction fee. If you make regular trips abroad, consider comparing different credit cards to find one that offers a foreign transaction fee-free plan.
By being aware of the Bank of America Travel Rewards Foreign Transaction Fee and preparing for it appropriately, you can save a lot of money and stress. It’s important to be prepared in case of unexpected fees or expenses to make sure that your travels are as enjoyable and smooth as possible.
Conclusion
Avoiding Bank of America Travel Rewards Foreign Transaction Fee is easy when the right precautions are taken. The most effective way to do this is by using a debit card that has no fee when used overseas or by carefully tracking foreign transaction fees and opting for the lower fee when possible. This will ensure that users will be able to enjoy their travels without the additional expense of foreign transaction fees.
Furthermore, numerous solutions exist for avoiding the Bank of America Travel Rewards Foreign Transaction Fee. These include opting for a debit card with no fee, comparing different banks and their foreign transaction fees, and even using an alternative payments option like Paypal or Google Pay. Taking the time to do some research and make smart decisions can save travelers money and ensure an enjoyable experience abroad.
