What the charge actually is
A foreign transaction charge is a percentage applied to purchases processed outside your home country. It applies to online orders from overseas merchants too, not only to spending while you are physically abroad.
Check before you go, not at the till
Terms vary between cards from the same issuer, and a card that waives the charge for travel purchases may still apply it elsewhere. Confirm the specific wording on the card you plan to take rather than assuming the whole product range behaves the same.
Always decline conversion at the terminal
When a payment terminal or website offers to charge you in your home currency, decline it and pay in the local one. The convenience conversion is set by the merchant processor and is routinely worse than the network rate you would otherwise get.
Paying in your own currency abroad feels safer and is almost always the more expensive choice.
Cash withdrawals are a separate matter
Withdrawing cash abroad usually carries its own charge and often begins accruing interest immediately, with no grace period. Treat overseas cash withdrawals as a last resort rather than a routine part of the trip.
Carry a backup
Take a second card from a different network and keep it separately. Acceptance varies by country and a blocked or lost card on day one of a trip is a much larger problem than the charge you were trying to avoid.
