What To Know
- For example, if you spend $1,000 on a purchase in a foreign country, you could incur a $30 FTF.
- If you don’t have access to a credit card that offers no FTFs, the Chase Sapphire Preferred® Card can still provide value.
- A FTF is a charge levied by credit card issuers when you use your card for purchases made outside your home country.
When embarking on international adventures, it’s crucial to understand the potential financial implications, especially regarding foreign transaction fees (FTFs). These fees can add up quickly, eroding the value of your purchases. If you’re considering the Chase Sapphire Preferred® Card, it’s essential to know whether it carries FTFs and how to minimize them.
Understanding Foreign Transaction Fees
FTFs are charges levied by credit card issuers when you use your card for purchases made outside your home country. These fees typically range from 1% to 3% of the transaction amount, depending on the card issuer and the country where the purchase is made.
Chase Sapphire Preferred® Card: Foreign Transaction Fees
Does the Chase Sapphire Preferred® Card have foreign transaction fees?
Yes. The Chase Sapphire Preferred® Card charges a 3% FTF on all purchases made outside the United States. This fee applies to both chip-and-signature and chip-and-PIN transactions.
Impact of Foreign Transaction Fees on Your Spending
FTFs can significantly increase the cost of your international purchases. For example, if you spend $1,000 on a purchase in a foreign country, you could incur a $30 FTF. Over time, these fees can add up, reducing the value of your travel rewards.
Minimizing Foreign Transaction Fees
While FTFs are unavoidable with the Chase Sapphire Preferred® Card, there are strategies to minimize their impact:
- Use a card with no FTFs: Consider getting a credit card that offers no FTFs, such as the Capital One Venture Rewards Credit Card or the Discover it® Miles.
- Pay in local currency: When possible, pay for purchases in the local currency instead of converting to US dollars. This can help avoid the double conversion fee that some credit card issuers charge.
- Use cash or traveler’s checks: In some cases, it may be more cost-effective to exchange currency and pay for purchases in cash or with traveler’s checks.
Additional Considerations
- Chase Sapphire Reserve® Card: The Chase Sapphire Reserve® Card offers no FTFs, making it a more suitable option for frequent international travelers.
- Other benefits of the Chase Sapphire Preferred® Card: Despite the FTFs, the Chase Sapphire Preferred® Card offers valuable travel benefits, such as bonus points on travel purchases, airport lounge access, and trip delay insurance.
- Alternatives to credit cards: If you’re concerned about FTFs, consider using a debit card or a service like TransferWise to avoid additional fees.
When to Use the Chase Sapphire Preferred® Card Abroad
Despite the FTFs, the Chase Sapphire Preferred® Card can still be a good option for international travel if you:
- Maximize travel rewards: If you spend a significant amount on travel and earn enough points to offset the cost of FTFs.
- Value other benefits: If you frequently use the card’s other benefits, such as airport lounge access and trip delay insurance.
- Don’t have a card with no FTFs: If you don’t have access to a credit card that offers no FTFs, the Chase Sapphire Preferred® Card can still provide value.
Summary: Weighing the Pros and Cons
The Chase Sapphire Preferred® Card offers valuable travel benefits, but it’s important to be aware of the 3% FTFs it charges. By carefully considering your spending habits and minimizing FTFs, you can maximize the value of the card while enjoying the benefits of international travel.
Questions You May Have
Q: What is a foreign transaction fee?
A: A FTF is a charge levied by credit card issuers when you use your card for purchases made outside your home country.
Q: Does the Chase Sapphire Preferred® Card have FTFs?
A: Yes, the Chase Sapphire Preferred® Card charges a 3% FTF on all purchases made outside the United States.
Q: How can I minimize FTFs with the Chase Sapphire Preferred® Card?
A: Consider using a card with no FTFs, paying in local currency, or using cash or traveler’s checks.
Q: Is the Chase Sapphire Preferred® Card still a good option for international travel?
A: Yes, if you maximize travel rewards, value other benefits, or don’t have a card with no FTFs.
Q: What are some alternatives to the Chase Sapphire Preferred® Card for international travel?
A: Consider the Chase Sapphire Reserve® Card, Capital One Venture Rewards Credit Card, or Discover it® Miles.
Q: How do I avoid double conversion fees?
A: Pay for purchases in the local currency instead of converting to US dollars.
Q: Can I use a debit card to avoid FTFs?
A: Yes, using a debit card typically avoids FTFs, but it may not offer the same rewards and benefits as a credit card.
Q: What is TransferWise?
A: TransferWise is a service that allows you to transfer money internationally at low rates, avoiding FTFs.
