What To Know
- Foreign transaction fees are charges imposed by credit card companies when you use your card for purchases made in a currency other than your home currency.
- If you’re looking for a credit card that won’t charge you foreign transaction fees, Southwest credit cards are a great option.
- Currency conversion fees are charges applied when a transaction is made in a currency other than the U.
Planning an international trip? It’s essential to understand how your credit card handles foreign transactions. Southwest Airlines, known for its budget-friendly flights, offers a range of credit cards. But do these cards come with foreign fees that could eat into your travel budget? Read on to unravel the truth about Southwest credit card foreign fees.
Foreign Transaction Fees Explained
Foreign transaction fees are charges imposed by credit card companies when you use your card for purchases made in a currency other than your home currency. These fees typically range from 1% to 3% of the transaction amount.
Southwest Credit Card Foreign Fees
No Foreign Transaction Fees
The good news is that Southwest credit cards do not charge foreign transaction fees. This means you can use your Southwest credit card for international purchases without worrying about additional charges.
Currency Conversion Fees
However, it’s important to note that Southwest credit cards, like most other credit cards, charge currency conversion fees. These fees are applied when a transaction is made in a currency other than the U.S. dollar. Currency conversion fees vary depending on the exchange rate at the time of the transaction.
Types of Southwest Credit Cards
Southwest offers several types of credit cards, including:
- Southwest Rapid Rewards® Premier Credit Card
- Southwest Rapid Rewards® Plus Credit Card
- Southwest Rapid Rewards® Performance Business Credit Card
- Southwest Rapid Rewards® Premier Business Credit Card
All of these cards offer the same no foreign transaction fee policy.
Benefits of Using Southwest Credit Cards Abroad
In addition to saving on foreign transaction fees, using Southwest credit cards abroad offers several benefits:
- Earn Rapid Rewards Points: You can earn Rapid Rewards points on international purchases, which can be redeemed for Southwest flights, hotel stays, and more.
- Priority Boarding: Some Southwest credit cards offer priority boarding benefits, allowing you to board the plane earlier.
- Travel Insurance: Certain Southwest credit cards provide travel insurance benefits, such as lost luggage coverage and trip cancellation protection.
Tips for Avoiding Foreign Transaction Fees
While Southwest credit cards do not charge foreign transaction fees, there are other ways to avoid these charges:
- Use a currency exchange service: Exchange your currency before traveling to avoid currency conversion fees.
- Pay with cash: If possible, pay for small purchases with cash to avoid credit card fees.
- Use a debit card: Debit cards typically do not charge foreign transaction fees.
In a nutshell: A Budget-Friendly Choice for International Travel
If you’re looking for a credit card that won’t charge you foreign transaction fees, Southwest credit cards are a great option. With no foreign transaction fees and the ability to earn Rapid Rewards points, Southwest credit cards make international travel more affordable and rewarding.
Frequently Asked Questions
Q: Do all Southwest credit cards have no foreign transaction fees?
A: Yes, all Southwest credit cards offer no foreign transaction fees.
Q: What are currency conversion fees?
A: Currency conversion fees are charges applied when a transaction is made in a currency other than the U.S. dollar.
Q: How can I avoid currency conversion fees?
A: You can avoid currency conversion fees by exchanging your currency before traveling or using a debit card that does not charge foreign transaction fees.
Q: Can I earn Rapid Rewards points on international purchases?
A: Yes, you can earn Rapid Rewards points on international purchases made with a Southwest credit card.
Q: Do Southwest credit cards offer travel insurance benefits?
A: Certain Southwest credit cards provide travel insurance benefits, such as lost luggage coverage and trip cancellation protection.
