Top ways that credit card fees sneak into your trip

Here are some ways that credit card fees make your trip more expensive—and how you can avoid some of them by using an EQ Bank Card.

How fees add up when you use a travel credit card

If you’re an avid traveller, you may have a travel credit card. They offer convenience and perks. But those benefits often come with a cost, and the fees can start racking up even before the vacation begins.

Before you travel

Most travel credit cards carry hefty annual fees ranging from around $120 per year up to $799 for cards with the most premium benefits. That’s a lot of money to pay just for opening an account.

That’s not all. When you’re ready to plan a trip, you might use an online reservation engine to book flights, accommodations or excursions. For reservations outside Canada, you’ll likely pay an extra foreign transaction (FX) fee when you hit “Book,” with most credit cards adding around 2.5% to each expense.

Tip: You might think you can get around this by opting to pay in Canadian dollars, but if you do, you’ll pay a dynamic currency conversion fee instead, which adds a surcharge to the currency exchange rate. Ouch!

At your destination

The fees don’t stop once you land at the airport, either. Typically, the first thing you’ll want to do is get local currency. You might think hitting up a bank machine is the easiest option, but it can cost you.

When you use your debit card abroad to withdraw cash, not only is there an extra FX fee usually, but some debit cards charge as much as 3.5% for currency conversion. Even bringing cash to exchange at the airport gets costly. As a general rule, airport kiosks tend to offer poor exchange rates and—you guessed it—extra FX fees.

Eventually, you’ll leave the airport and embark on the best part of your vacation, but if you use your credit card, you’ll pay for the privilege. Each and every foreign currency purchase—that means taxis, dining, entertainment and shopping—is subject to at least the extra 2.5% FX fee with most regular credit cards.