Just a heads up to penny-pinching budget travelers like me. I just received a notification in the mail that Bank of America is redefining the term "Foreign Transaction Fee" for their credit cards. They are now including all transactions made outside of US soil no matter what currency the transaction is made in. This includes US dollars. Cheeky buggers.
So now when you buy that whatchamahoozit at Harrod's and the clerk kindly asks you if you want to process your purchase in US dollars, B of A will still charge you with that nasty foreign tranaction fee because you're standing in the United Kingdom at the time of purchase.
Now, to be honest, I advocate using Capital One while abroad anyway since they don't charge any foreign transaction fees at all. And I'll admit that a 3% charge generally isn't that huge. So it's up to you whether you think it's worth it.
But I personally want to save as much as possible. And on a $5000 trip, 3% comes out to $150 I'd rather spend somewhere other than some CEO's pocket. And if I hadn't caught this tiny addendum in this almost forgettable piece of mail, I wouldn't be aware of this re-definition.
So there you are. Charge wisely.