A 2-3% foreign transaction fee is applied whenever you use a credit card or debit card to pay for something in another currency, such as when you’re travelling or shopping online with an international retailer.
If you went to France and booked a hotel for $1000, a 3% international transaction fee would add $30 to your credit card bill.
There are a select few cards that don’t charge this fee, including some platinum and premium credit cards, and cards marketed specifically to travellers.
TIP: Check out credit card terms and conditions to find out how much this fee is worth. If you shop online or travel a lot, getting a credit card that doesn’t charge for foreign transactions can save you heaps.