Killing off a revenue source is rarely a goal for credit unions, but a few are doing just that by nixing the foreign transaction fees on their credit cards.
Foreign transaction fees are typically added to cardholder purchases that are made in a foreign currency or that go through a non-U.S. bank. While they're still very common, some card issuers appeared to be thinking twice about the fees lately. According to a CreditCards.com survey last year of 163 cards from 12 of the largest issuers in the United States, the number of cards that are ditching foreign transaction fees has risen by 80% since 2012, going from 21 to 38.
Some credit unions are following this drift and eliminating foreign transaction fees on some or all of their cards, but the move isn't for every credit union. A few things might make it worth taking another look at your program, experts said.
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