Considering making an international purchase on a credit card? There are a few risks you should be aware of first. If you think there’s a chance you might want to return the item and receive a refund on your credit card, you might be surprised to learn that the amount you’ll be refunded will be considerably less than what you initially paid. Why? Credit card companies and merchants don’t refund the international conversion or international transaction fees paid when you made the purchase. In fact, they often charge the fees again, compounding your loss. Here’s a few things you can do to protect yourself:

1) Make sure you know the international transaction fee your credit card will charge for making the purchase. (See list of credit card international transaction fees).

2) Know the DCC fee that the merchant might be charging if you use a credit card that is susceptible to additional DCC fees.

3) Make sure you want to keep the item your purchasing. If you’re not sure, pay in cash. You could end up only receiving $90 of a $100 purchase for doing a chargeback on a typical credit card charging a 3% international transaction fee.

4) International car rental companies often charge a deposit which is refunded when the car is returned. This is effectively a chargeback on your credit card which can be very costly if there are also high foreign conversion fees being applied. The only defense is to find a credit card with low foreign transaction fees.