When you use a U.S. credit card abroad almost all of the major card companies charge a two to three percent foreign transaction fee.

Many credit card companies did not clearly disclose or explain these fees in their terms and conditions until this recent time. Many people received a notice telling of a class action lawsuit settlement regarding these fees earlier this year.

Now that the lawsuit has been settled, credit card companies are required to clearly state foreign and international transaction charges on credit card applications.

When you are wondering how much your current credit card company charges on international transactions, call the customer service number to find out, most will inform you that the fee is three percent. Paying an extra three percent on every purchase can really hurt the wallet, but fortunately, there are a few ways to avoid these charges.

The foreign currency rate you will receive from your bank may be much better than that of a foreign currency exchange booth.

Even though ATM withdrawals are generally free of foreign transaction charges, using your debit card as a credit card comes with some risks. A debit card will be easier to use in a fraudulent manner when making purchases abroad than a credit card; this can be the best reason to use a credit card abroad.

If an unscrupulous merchant overcharged or fraudulently used your credit card, you can easily contest the charges and receive a refund on your credit card account. A debit card used fraudulently will make your bank account disappear and it will be very slow to reappear.

It seems that the best way to pay no international transaction fees is through the use of the credit cards that charge no fees; these no fee credit cards give you security without the added expense.

It is always great to know just how much you will be spending in your day to day life, but it is even better when you are vacationing because ATM fees are charged for each transaction. Most people do not have a very good idea of how much cash they may need to have on hand while traveling; it is difficult to withdraw the correct amount in one single transaction.

A cash machine can be difficult to find in many countries and you have to be careful to refrain from withdrawing too excessive of an amount to avoid the risk of being robbed. You have to pay fees to convert to foreign currency and then you also have to pay fees to convert back to your local currency.

Traveler's checks are a safe alternative to cash but they are not accepted everywhere and there is a fee to purchase them.

When applying for the credit card you believe will not charge any additional fees for foreign purchases, be sure you study the terms and conditions carefully to be absolutely sure the card you are getting is the right card. Check the terms of the card before using it, to assure yourself that you can pay off the balance in a hurry if the interest rate is high, so you won't be paying fees in a different way.