Introduction
If you are planning an international trip and you are a Bank of America customer, it is important to understand the international travel fees that may apply to your transactions. In this article, we will dive into the details of these fees, how they are calculated, and offer some tips on how to minimize them.
Understanding Foreign Transaction Fees
When you use your Bank of America debit or credit card outside of the United States, you may incur foreign transaction fees. These fees are charges applied by the bank to cover the costs associated with converting currencies and processing international transactions.
Types of International Travel Fees
Bank of America charges two types of fees for international transactions: foreign transaction fees and foreign ATM withdrawal fees.
Foreign Transaction Fees
Foreign transaction fees are typically a percentage of the total transaction amount and are applied whenever you make a purchase in a foreign currency. Bank of America’s foreign transaction fee is usually around 3% of the transaction amount, but it may vary depending on the type of account you have.
Foreign ATM Withdrawal Fees
If you need to withdraw cash from an ATM while abroad, you may also face foreign ATM withdrawal fees. These fees are charged by Bank of America for using non-Bank of America ATMs overseas. The fee amount can vary depending on the type of account you have and the country where you are making the withdrawal.
Tips to Minimize International Travel Fees
While international travel fees are unavoidable in most cases, there are a few strategies you can use to minimize them:
1. Use Bank of America Global ATM Alliance
Bank of America is a member of the Global ATM Alliance, which allows Bank of America customers to use partner bank ATMs abroad without incurring foreign ATM withdrawal fees. Before your trip, check the list of partner banks in your destination country and look for their ATMs to save on fees.
2. Choose Local Currency
When making a purchase overseas, you may be given the option to pay in your home currency or the local currency. Always choose the local currency to avoid dynamic currency conversion fees, which can be quite high.
3. Use Travel Rewards Credit Cards
If you frequently travel internationally, consider using a travel rewards credit card that offers perks such as waived foreign transaction fees. Bank of America offers several credit cards with travel rewards programs that can help you save on fees and earn rewards points at the same time.
Conclusion
Bank of America international travel fees can add up quickly if you are not aware of them. By understanding the types of fees you may encounter and following the tips mentioned above, you can minimize these fees and make the most of your international travels while still enjoying the convenience of using your Bank of America debit or credit card.