Foreign Transaction Fee Chase Sapphire Preferred What You Need to KnowTravelers and frequent international shoppers often face the issue of foreign transaction fees when using credit cards abroad. These fees can add up quickly, making your purchases more expensive. Fortunately, the Chase Sapphire Preferred® Card is known for its travel-friendly benefits, including its stance on foreign transaction fees. In this topic, we will explore whether the Chase Sapphire Preferred® charges foreign transaction fees, how it compares to other cards, and how to maximize the benefits of using this card for international purchases.
What Are Foreign Transaction Fees?
Before delving into the specifics of the Chase Sapphire Preferred® card, it’s essential to understand what foreign transaction fees are. These fees are typically charged when you make a purchase in a foreign currency or through an international bank. Foreign transaction fees are usually calculated as a percentage of the total purchase amount, typically between 1% and 3%.
For example, if you make a $200 purchase while traveling abroad, a 3% foreign transaction fee would add an additional $6 to the total cost, making your purchase $206.
Does the Chase Sapphire Preferred Charge Foreign Transaction Fees?
The Chase Sapphire Preferred® Card does not charge foreign transaction fees. This is one of the key advantages of this card for travelers. Many credit cards impose foreign transaction fees, especially those geared towards rewards and everyday purchases. However, the Chase Sapphire Preferred® has positioned itself as a top choice for international travelers by eliminating these fees.
This benefit makes the card highly appealing for individuals who frequently travel abroad or shop with international merchants. By not having foreign transaction fees, the Chase Sapphire Preferred® can save you money on each purchase made in a foreign currency.
Why Is the Chase Sapphire Preferred a Great Choice for International Travel?
There are several reasons why the Chase Sapphire Preferred® stands out as a premier card for international travel. Below, we will explore the benefits that make it an ideal choice for frequent flyers and global shoppers.
1. No Foreign Transaction Fees
As mentioned earlier, the absence of foreign transaction fees is a huge selling point for the Chase Sapphire Preferred®. While other credit cards may charge up to 3% per transaction, this card allows you to make purchases abroad without any extra fees, saving you money in the long run.
2. Travel and Purchase Protection
The Chase Sapphire Preferred® card offers excellent travel protection benefits, including trip cancellation insurance, travel accident insurance, and baggage delay insurance. These benefits can help protect you from unexpected travel disruptions or issues that may arise during your trip.
Additionally, the card provides purchase protection for items bought with the card. If your purchase is damaged or stolen within 120 days of purchase, the card can provide reimbursement for up to $500 per item, up to a maximum of $50,000 per year.
3. Earn Rewards on International Purchases
The Chase Sapphire Preferred® card is known for its rewards program, which offers 2 points per dollar spent on travel and dining and 1 point per dollar on all other purchases. Points can be redeemed for travel through the Chase Ultimate Rewards® program, often at a 25% higher value when booking through the portal. This means that your international purchases, whether for flights, hotel stays, or dining, will earn you more points, which can be redeemed for free or discounted travel in the future.
4. Wide Acceptance Abroad
The Chase Sapphire Preferred® card is part of the Visa network, which is widely accepted at millions of merchants and ATMs worldwide. Visa is one of the largest payment networks, ensuring that you can use your card in most countries without issues. This wide acceptance is crucial when traveling abroad, as you want to make sure your card will work in various locations.
How to Maximize the Benefits of the Chase Sapphire Preferred Abroad
While the Chase Sapphire Preferred® offers several benefits for international travelers, it’s important to maximize these advantages to get the most out of your card. Below are some tips to help you use your card effectively when traveling overseas.
1. Pay in Local Currency
When making purchases abroad, always choose to pay in the local currency instead of U.S. dollars. Some merchants and ATMs offer dynamic currency conversion (DCC), which allows you to pay in your home currency. While this may seem convenient, DCC often comes with higher exchange rates and additional fees. Paying in the local currency ensures you get the most competitive exchange rate.
2. Use the Chase Ultimate Rewards® Portal
If you’re booking travel while abroad, consider using the Chase Ultimate Rewards® portal. You can redeem your points for flights, hotels, and car rentals, and points are often worth 25% more when redeemed through the portal. This added value makes it easier to save money on travel expenses and maximize your rewards.
3. Be Mindful of ATM Fees
While the Chase Sapphire Preferred® does not charge foreign transaction fees, withdrawing cash from an ATM abroad may incur fees. Chase has partnerships with several international banks that allow you to withdraw cash without paying ATM fees. You can also look for ATMs that belong to the Visa network, as these may offer lower or no fees for withdrawals.
4. Monitor Exchange Rates
The exchange rate can have a significant impact on the cost of your purchases when traveling abroad. To avoid surprises, keep an eye on exchange rates and plan accordingly. Some credit card companies, including Chase, may offer real-time exchange rate updates, helping you track the rate when making international purchases.
Chase Sapphire Preferred vs. Other Travel Cards
The Chase Sapphire Preferred® card is often compared to other premium travel credit cards, such as the Chase Sapphire Reserve® and the American Express® Gold Card. While all of these cards offer valuable benefits for travelers, the Chase Sapphire Preferred® has a few distinct advantages
-
Lower Annual Fee The Chase Sapphire Preferred® comes with a more affordable annual fee of $95, compared to the $550 annual fee for the Chase Sapphire Reserve®.
-
No Foreign Transaction Fees Like the Chase Sapphire Reserve®, the Chase Sapphire Preferred® does not charge foreign transaction fees. This sets it apart from many other cards that impose such fees.
-
Great Rewards on Travel and Dining The card offers 2 points per dollar on travel and dining, which makes it a solid choice for those who spend on these categories, both abroad and at home.
The Chase Sapphire Preferred® card is a top choice for international travelers due to its lack of foreign transaction fees, excellent rewards program, and valuable travel protections. Whether you’re booking a flight, dining at a restaurant, or shopping online from international merchants, you can enjoy a seamless experience without worrying about extra fees.
By using the card wisely, such as opting for local currency when making purchases and utilizing the Chase Ultimate Rewards® portal, you can maximize the benefits and earn significant rewards while traveling abroad. If you’re planning to travel internationally, the Chase Sapphire Preferred® card is certainly worth considering for its travel perks and cost-saving features.