Planning holiday? Foreign transaction fee can burn big hole in your pocket

Carrying cash or having a good travel credit card with rewards can help reduce costs

Planning to use your credit card while on a foreign vacation this holiday season? There’s a fee hidden in the fine print of terms and conditions. And we are not talking about the foreign currency conversion fee — the fee charged to convert your foreign currency purchases into rupees. This is called the Foreign Transaction Fee (FTF), which can dig a big hole in your pocket if you aren’t careful. 

Navin Chandani, chief business development officer, BankBazaar, says: “The FTF is a fee you pay the credit card issuer every time you use the credit card abroad. It usually ranges