A lot of us Filipinos enjoy shopping online in America because of the cheaper prices and huge selection (druel worthy huge) of products that are available, many of which you can’t buy in the Philippines or cost substantially more here. You can safely shop online using your Philippine credit cards on American websites or online stores and have your items quickly shipped to your air freight forwarder and be enjoying your purchases within just 1 week. Using your credit card to make payment also means you protect yourself against fraudulent websites or sellers as your credit card issuer can do a chargeback to recover the funds, all good so far.
Overseas spending credit cards
What some people don’t realize however when they’re shopping online in America they are being charged an overseas transaction fee even if they’re in the Philippines. These fees are usually not mentioned, hidden or disguised as an exchange rate but if you examine your credit card billing statement you will notice the rate is usually between 2-5% in the banks favour as this is where the banks hide their fees. This means you have paid up to 5% to use your credit card overseas and you might not have even realized it.
Best credit cards for overseas shopping
The best credit cards in the Philippines for overseas shopping are from Security Bank, RCBC, BPI & Maybank. These banks have cards that offer the lowest overseas transactions fees ranging from 0% to 1%. Remember though when picking a credit card also consider the monthly interest rate, annual membership fee, chargeback protection policy and what rewards and perks they give to their cardholders. Also consider your financial situation, if you think you won’t be able to pay your credit card bill in full on the due date then this means you will be charged interest on the outstanding balance (unpaid) and it would wise to choose a card that has both a low overseas transaction fee and a low interest rate on purchases.
To find the best overseas spending credit cards simply use our compare credit cards tool.