USAA Removes Foreign Transaction Fee on Credit Cards
USAA announced it will no longer be charging foreign transaction fees on any of its credit cards. The company is aiming to improve the benefits to its military members, allowing them to travel to other countries without being charged an additional fee on their purchases.
Prior to the announcement, USAA cards had a 1% foreign transaction fee for its American Express, MasterCard and Visa cards. This is lower than the standard foreign transaction fee of 3%, but it was still extra money that users had to pay when traveling overseas. Foreign transaction fees are designed to cover the cost of converting currency from U.S. dollars to Euros, Pesos, etc., and they are common for a number of credit cards.
USAA first eliminated foreign transaction fees on its Visa cards in October, but the company kept the fees on their MasterCard and American Express until now. USAA will also be replacing its MasterCard products with Visa cards over the course of 2016.
USAA is the 10th largest credit card issuer in America, and at one point, it was the largest MasterCard issuer in the country. USAA MasterCard users totaled $26 billion in transactions in 2014.