Summer is the busiest season for Americans traveling abroad.
According to the Bureau of Transportation Statistics, over 26 million people, or nearly 30% of all annual international commercial passengers, departed on scheduled flights abroad during the summer months in 2010.
With the economy continuing to recover, the positive growth in the number of people traveling internationally, witnessed from 2009 to 2010, is expected to continue in 2011.
However, the U.S. dollar is at a three-year low and the Euro has increased to the point that it is now worth about $1.50, which makes it ever more important for people to be careful about how they spend money abroad. Since it’s better to use a credit card overseas than rely on cash or travelers checks for a number of reasons—most notably the fact that Visa and MasterCard provide some of the best exchange rates possible—the question becomes, what are the best credit card companies for foreign travel?
What is the key feature of a credit card for overseas spending?
The primary factor in determining a credit card’s applicability to overseas travel is the presence of foreign transaction fees. According to the Pew Charitable Trusts, 91% of bank cards have fees that make every purchase processed abroad cost about 3% more. Therefore, a no foreign transaction fee credit card can save you a lot of money on a trip overseas.
Who’s the best?