Travelling with a wad of cash is never safe and it’s even more of a hassle when you are travelling overseas due to the different currencies. Credit cards are the best and safest way to make cash transactions when you are travelling. A credit card will ensure that you don’t have to worry about currency conversion wherever you are. It is also the safest option because even if you lose your card, there are less chances that you will lose all your money. The bank will take you off the hook for any unauthorised purchases if you report your card stolen.
But using credit card overseas comes with a cost. There are special charges that will be applicable for the transactions you make on your credit card overseas. It is very important to know what additional charges you have to pay for before you use your credit card overseas. Given below are the charges applicable when you use your credit card overseas.
Overseas conversion fee -
Overseas conversion fee is decided by the card provider. The charges can be anywhere between 1% to 3% on the amount transacted. This fee is applicable on every transaction you make overseas with your credit card.
Currency conversion fee-
Converting currency when you are in a different place can be a tedious task. When you use your credit card for any transaction outside Malaysia, the transaction amount will be first converted to US dollars, and then converted to Ringgit again on the date the transaction is processed by the Bank. The rate of exchange on the date of such posting may differ from the rate of exchange in effect on the date of transaction. The exchange rates may vary according to market fluctuations. Any rate imposed is final and all exchange rate risks would be borne by the cardholder.
Cash advance fee on overseas ATM-
You can easily avail cash advance from an ATM when you are outside Malaysia. But there will be a certain percentage of fee applicable on the cash advance from the ATM.