Attention Travelers! Uncover The Truth: Does Southwest Credit Card Charge Foreign Transaction Fees?

When embarking on international adventures, it’s crucial to understand the potential financial implications. One common concern is whether your credit card will incur foreign transaction fees (FTFs). This blog post will delve into the world of Southwest credit cards, unraveling the mysteries surrounding FTFs and empowering you with the knowledge to make informed decisions.

Understanding Foreign Transaction Fees

FTFs are charges imposed by credit card issuers when transactions are processed in a currency other than the card’s home currency. These fees typically range from 1% to 3% of the transaction amount. While some cards offer FTF-free perks, it’s essential to check the specific terms and conditions of your Southwest credit card to determine its FTF policy.

Southwest Credit Cards and FTFs

Southwest Rapid Rewards® Premier Credit Card

• 0% FTFs on all purchases made outside the United States

Southwest Rapid Rewards® Plus Credit Card

• 1% FTFs on all purchases made outside the United States

Southwest Rapid Rewards® Performance Business Credit Card

• 0% FTFs on all purchases made outside the United States

Exception to the Rule: Southwest International Travel Fund

Southwest offers a unique perk called the International Travel Fund (ITF). Cardholders who use their Southwest credit card to purchase Southwest flights can earn ITF points. These points can be redeemed for future Southwest flights, effectively offsetting the cost of any FTFs incurred during the trip.

Tips for Avoiding FTFs

• Use a dedicated travel credit card: Some travel credit cards offer FTF-free perks or have low FTF rates.
• Look for cards with no annual fee: Avoid paying additional fees on top of FTFs.
• Consider using a foreign exchange service: Exchange your currency before your trip to avoid FTFs altogether.
• Use your card’s ITF: If you have a Southwest credit card, take advantage of the ITF feature to minimize the impact of FTFs.

The Bottom Line: Navigating Foreign Transactions with Southwest Credit Cards

Understanding the FTF policies of your Southwest credit card is essential for making the most of your international travels. By choosing a card with low or no FTFs, using the ITF feature, and employing other avoidance strategies, you can minimize the financial burden associated with foreign transactions. Remember, knowledge is power, and armed with this information, you can embark on your global adventures with confidence and ease.

Frequently Asked Questions

Q1: Does the Southwest Rapid Rewards® Premier Credit Card have FTFs?
A: No, the Southwest Rapid Rewards® Premier Credit Card does not charge FTFs on any purchases made outside the United States.

Q2: Can I use my Southwest ITF points to pay for FTFs?
A: No, ITF points cannot be used to pay for FTFs directly. However, you can use them to offset the cost of Southwest flights, effectively reducing the impact of FTFs.

Q3: What is the FTF rate for the Southwest Rapid Rewards® Plus Credit Card?
A: The Southwest Rapid Rewards® Plus Credit Card charges a 1% FTF on all purchases made outside the United States.

Q4: Can I avoid FTFs by using a foreign exchange service?
A: Yes, exchanging your currency before your trip through a foreign exchange service can help you avoid FTFs altogether.

Q5: Do all Southwest credit cards offer FTF-free perks?
A: No, not all Southwest credit cards offer FTF-free perks. Only the Southwest Rapid Rewards® Premier Credit Card and the Southwest Rapid Rewards® Performance Business Credit Card have 0% FTFs.