Understanding Overseas Transaction Fees
When using your UOB credit card overseas, you may encounter an overseas transaction fee (OTF). This fee, typically a percentage of the transaction amount, is charged by the card issuer to cover currency conversion and other processing costs.
How Much is the UOB Credit Card Overseas Transaction Fee?
The OTF charged by UOB varies depending on the type of credit card you hold. The following table summarizes the OTFs for different UOB credit cards:
| Credit Card Type | Overseas Transaction Fee |
|---|---|
| UOB PRVI Miles American Express Credit Card | 3.5% |
| UOB Visa Signature Credit Card | 3.0% |
| UOB Mastercard | 2.5% |
| UOB Lady’s Card | 2.0% |
| UOB YOLO Card | 1.5% |
Calculating the Overseas Transaction Fee
To calculate the OTF for a specific transaction, simply multiply the transaction amount by the applicable OTF percentage. For example, if you make a purchase of SGD 1,000 using your UOB PRVI Miles American Express Credit Card, the OTF would be SGD 35 (1,000 x 0.035).
Additional Considerations for Overseas Transactions
In addition to the OTF, there may be other factors to consider when using your UOB credit card overseas:
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Exchange Rates: Currency exchange rates fluctuate often, and the rate you receive when using your credit card may differ from the official exchange rate. It’s important to check the exchange rate before making a purchase.
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ATM Fees: If you withdraw cash from an overseas ATM using your UOB credit card, you may be charged an ATM fee by the bank operating the ATM.
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Dynamic Currency Conversion (DCC): Some merchants may offer to process your transaction in your home currency instead of the local currency. While this may seem convenient, it often results in a less favorable exchange rate and higher fees. It’s generally better to decline DCC and opt for the local currency instead.
Minimizing Overseas Transaction Fees
There are several strategies you can employ to minimize the impact of OTFs on your overseas purchases:
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Choose a credit card with a low OTF: As shown in the table above, some UOB credit cards offer lower OTFs than others. Consider applying for a card with a lower OTF if you frequently make overseas purchases.
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Use a currency exchange service: Currency exchange services typically offer more competitive exchange rates than credit cards. Consider exchanging your currency before traveling to avoid the OTF and secure a better exchange rate.
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Make larger purchases: The OTF is charged on a per-transaction basis, so it’s more cost-effective to make fewer, larger purchases rather than several smaller ones.
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Consider using a travel card: Travel cards, such as the UOB Travel Card, often offer more favorable exchange rates and lower fees than traditional credit cards.
Conclusion
Understanding the UOB credit card overseas transaction fee is essential for planning your overseas travel budget. By choosing a credit card with a low OTF and implementing the strategies outlined above, you can minimize the impact of these fees and enjoy a more affordable overseas experience.
