List of Credit Card Foreign Currency Transaction Fees

Most credit cards charge a foreign transaction fee when the card is used outside the United States. These fees are usually between 2% and 3% of each purchase, but there is at least one major credit card issuer that does not charge any fee (see table below). The fee typically includes a conversion fee of 1% that is charged by international MasterCard and Visa networks for overseas purchases. In addition, most U.S. banks add their own fee which is where the total 2% to 3% fees come from.

These fees can add up quickly when traveling abroad. We recently traveled to Canada for a week, and the cost of the hotel, food, souvenirs, and and sight-seeing ads up. We used a Discover More card, which ads 2% to the total cost for the foreign currency fee. As you’ll see in the chart below, 2% is very competitive. Because we also earned 5% cash back from most of the purchases, we came out ahead even compared to a card that doesn’t charge for international purchases. Still, when traveling outside the United States, it’s important to consider which cards you’ll take with you and use on your trip.

While there are lists available of foreign transaction fees (e.g., this one from MSN), the are outdated. The MSN list, for example, includes a Washington Mutual credit card even though WaMu has been closed for many months now. So below is an updated list of the major card issuers and the fees they charge for using their card outside of the United States.

Best Cards for International travel

Card Issuer	Foreign Currency Fee	Top Travel Card	Travel Benefits
Capital One	0%	No Hassle Miles Rewards	1 mile per dollar spent on purchases up to $1,000 each month 2 miles per dollar above $1,000 each month No limit on the miles you can earn and miles don't expire Redeem for Travel, Merchandise, Gift Cards and more No blackout dates and no seat restrictions Fly FREE on any airline to any destination
Chase	3%	Chase Sapphire	10,000 Bonus Points after first purchase 2X on all airfare booked through Ultimate Rewards No earning caps, point expiration, or blackout dates Earn 10x for every dollar when shopping at select merchants through Ultimate Rewards Mall 1 point for every dollar on all other purchases
Discover	2%	Miles by Discover	12,000 Bonus Miles - 1,000 Bonus Miles each month you make a purchase for your first year Double Miles on travel and restaurant purchases. One Mile for every dollar on all other purchases Flexible redemption options for travel, gift cards, or cash Double Miles through our exclusive online shopping site
Bank of America	3%	Bank of America® World MasterCard® Credit Card with WorldPoints	WorldPoints® rewards: Cash, unrestricted travel, hotel benefits, car rentals, merchandise, gift certificates and more Ultimate Access™ rewards: Unique experiences, sports memorabilia, marquee events and more Rewards Start at: 2,500 points Points: 1 point per $1 in retail purchases Points Limit: None Points Expire: 5 years
American Express	2.7%	Starwood Preferred Guest(R) Credit Card from American Express	Earn up to 25,000 Starpoints (R) – enough for up to 6 free nights at a category 1 or 2 hotel. Use Starpoints(R) for free nights and upgrades at participating Starwood hotels and resorts in 95 countries including Sheraton, W Hotels, Westin and more with no blackout dates No annual fee for the first year and $45 thereafter Transfer Starpoints(R) – almost always on a 1:1 basis – to the frequent flyer programs of over 30 major airlines Earn one Starpoint(R) for every dollar you spend and double Starpoints(R) at participating Starwood properties and retail partners Express Approval. Get a decision in less than 60 seconds.

Here are more details on the fees charged by each card issuer:

• Discover: 2% of the U.S. dollar amount of each purchase made in a foreign currency
• Citi: 3% of the U.S. dollar amount of each purchase made outside the U.S
• Chase: 3% of the U.S. dollar amount of the transaction, whether originally made in U.S. dollars or converted from a foreign currency.
• Capital One: Capital One does not charge a fee for using your credit card for foreign currency transactions. Foreign purchases will be converted at the foreign exchange rate in effect at the time of posting the charge.
• Bank of America: Transaction Fee for any transaction made in a foreign currency and any transaction made in U.S. Dollars that is processed outside the United States: 3% of the U.S. Dollar amount of each such transaction.

Credit card charges, U.S. dollars

Occasionally, a foreign merchant will charge you in U.S. dollars rather than in the local currency. Banks are inconsistent in their treatment of such charges: Bank of America and Citibank add the same conversion fee regardless of the currency, but American Express and Chase do not surcharge dollar billings.

Although dollar billings might seem a good idea—at least in some cases—you have to be aware of a possible scam: The merchant may use a lousy exchange rate when it converts your bill into US dollars, so you might end up paying both a merchant’s private currency markup in addition to a surcharge. the solution to this would be to avoid any billing in dollars.

Withdrawing from An ATM Overseas

Until recently, the only extra charge you paid was a flat fee for each withdrawal from a foreign ATM, regardless of the amount of money you received. Lately, however, some big banks have added a conversion surcharge. This is something you should find out about before using your card at a foreign ATM so you don’t have any surprise charges.

Other Factors When Deciding Which Credit Cards to Take Abroad

When traveling overseas, the foreign currency transaction fee is one consideration when deciding what credit cards to take with you. But there are several other this to keep in mind.

• Always Take a Visa or MasterCard: Discover is not accepted in many places overseas, and neither is American Express. Because Visa and MasterCard charge lower interchange fees, among other reasons, they are accepted virtually everywhere. The last thing you want is to be overseas and not have a card that can be used when need. So always take a Visa or MasterCard.
• Take an American Express: I always take my Gold Amex as well. While it’s not accepted in as many places as Visa or MasterCard, its travel services are unparalleled. Amex can help you in a pinch in many, many ways.
• Cash Back: While the foreign transaction fee is important, consider all of the benefits each card has to offer. As I mentioned above, we used our Discover More Card in Canada this summer to take advantage of 5% cash back. Even paying a 2% transaction fee, we came out ahead.