Bank of america credit card foreign exchange rate

This question is about the Bank of America® Travel Rewards credit card

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What's the best Bank of America credit card for international travel?

The best Bank of America credit card for international travel is the BofA Travel Rewards card because it has a $0 annual fee, a 0% foreign transaction fee and good rewards. New cardholders can earn 25,000 points worth $250 in travel purchases, by spending $1,000 within 90 days of account opening. It has no foreign transaction fee, which means cardholders won’t have to pay extra for purchases made outside of the U.S. … read full answer

Bank of America cards with foreign transaction fees charge an extra 3% on all international purchases, both in person and online. In addition to not having a foreign transaction fee, the Bank of America Travel Rewards card is on the Visa Network. This gives the card global acceptance. Visa credit cards can be used in more than 200 countries where credit cards are accepted.

Other perks on the Bank of America Travel Rewards card include an intro APR of 0% for 18 billing cycles and 1.5 points per $1 spent on all purchases. Bank of America/Merrill Lynch customers with an eligible banking account get a 10% increase that bumps earnings to 1.65 points per $1 spent.

You can redeem points to pay for any travel expenses up to 12 months from when you charge them to your card. Travel expenses include, but are not limited to, airfare, hotel stays, vacation rentals, taxi rides and car rentals. Points are worth 1 cent each when redeemed for travel. Alternatively, you can redeem points for a direct deposit, statement credit or gift cards, but they’ll be worth half a cent or less. Bear in mind this card does require excellent credit (score of 750+) in order to have good odds of being approved.

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Is using a credit card internationally a good idea?

Yes, using a credit card internationally is the best way to go about paying for things when you’re abroad. It’s safer because you don’t have to carry as much cash, and all major credit card companies offer $0 fraud liability guarantees. Using a credit card internationally also gets you the… read full answerbest currency exchange rates, and it’s a great opportunity to earn rewards.

Using a credit card internationally isn’t the same as using a credit card domestically, though. There are a few guidelines to follow, such as using a no foreign transaction fee credit card on the Visa or Mastercard network. And there are several other items you should be aware of, including travel alerts, chips and dynamic currency conversion.

Here are some tips for using a credit card internationally:

• Full protection from unauthorized charges: Credit cards allow you to minimize the amount of cash you carry abroad and provide the opportunity to earn rewards. They also come with $0 fraud liability.
• Avoid foreign transaction fees: Many credit cards come with foreign transaction fees when you buy from internationally-based merchants. These fees are typically 1%-3% of the purchase amount. If you go abroad, you should get a card with no foreign transaction fee.
• Set travel alerts: Many credit card companies ask that you set a “travel alert” before leaving the country. It’s not mandatory. But if you don’t, they might suspect that international purchases are fraud and suspend your spending privileges until you notify them otherwise.
• Wider acceptance and more protection with chip cards: You’ll have a smoother experience using a credit card internationally if it’s a “chip” card. Many unmanned payment terminals abroad will not take cards that have only a magnetic stripe. And merchants may even give you a hard time if your card doesn’t have a chip.
• Refuse Dynamic Currency Conversion: Choose to pay in the local currency. Merchants may offer to let you pay in U.S. dollars, a practice known as Dynamic Currency Conversion. But it’s often an excuse to use an unfair exchange rate (often as much as 7% higher) and overcharge you.
• Avoid cash advances: Credit card cash advances allow you to get cash from your card’s credit line. However, cash advances are subject to hefty fees and interest rates that accrue immediately, with no grace period. So it’s best to avoid them outside of emergency use.

If you’re in the market for a credit card to use internationally, check out our editors' picks for the best credit cards for international travel.

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