Understanding Foreign Transaction Fees on Cards

Question:

What is typically true about credit or debit cards that have foreign transaction fees?

A. They offer higher rewards for international purchases

B. They charge an additional fee for transactions made outside the cardholder’s home country

C. They provide a higher exchange rate for foreign currencies

D. They automatically waive all foreign transaction fees

Answer Description:

Credit or debit cards that have foreign transaction fees typically charge an additional fee for transactions made outside the cardholder’s home country. This fee is usually a percentage of the transaction amount and is applied to cover the costs associated with currency conversion and international processing.