What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (2024)

Table of Contents

  • What are foreign transaction fees? How do they work?
  • Why do some cards charge foreign transaction fees?
  • Can I avoid foreign transaction fees?
  • How to spot a foreign transaction fee on your credit card
  • Credit cards with no foreign transaction fees
  • Which credit card processors are accepted internationally?
  • Which types of credit cards are accepted internationally?
  • How do you save money when using a credit card internationally?
  • The bottom line
  • FAQs

Money Credit Cards

Article updated on Jul 25, 2024

Foreign transaction fees could increase your expenses while traveling overseas, but there are ways to avoid them

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What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (1)What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (2)What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (3)

Written by

Cynthia Paez Bowman is a finance, real estate and international business journalist. Besides Bankrate.com, her work has been featured in Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and SimpleDollar.com. She owns and operates a small digital marketing and public relations firm that works with select startups and women-owned businesses to provide growth and visibility. Cynthia splits her time between Los Angeles, CA and San Sebastian, Spain. She travels to Africa and the Middle East regularly to consult with women's NGOs about small business development.

See full bio ,

What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (4)

Tiffany Connors

Editor

Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.

See full bio

Edited by

What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (5)

Justin Jaffe

Managing editor

Justin Jaffe is the Managing Editor for CNET Money. He has more than 20 years of experience publishing books, articles and research on finance and technology for Wired, IDC and others. He is the coauthor of Uninvested (Random House, 2015), which reveals how financial services companies take advantage of customers -- and how to protect yourself. He graduated from Skidmore College with a B.A. in English Literature, spent 10 years in San Francisco and now lives in Portland, Maine.

See full bio ,

What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (6)

Courtney Johnston

Senior Editor

Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.

See full bio

CNET staff -- not advertisers, partners or business interests -- determine how we review the products and services we cover. If you buy through our links, we may get paid.

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Our Experts

What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (7)What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (8)What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (9)

Written by

Cynthia Paez Bowman

Cynthia Paez Bowman is a finance, real estate and international business journalist. Besides Bankrate.com, her work has been featured in Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and SimpleDollar.com. She owns and operates a small digital marketing and public relations firm that works with select startups and women-owned businesses to provide growth and visibility. Cynthia splits her time between Los Angeles, CA and San Sebastian, Spain. She travels to Africa and the Middle East regularly to consult with women's NGOs about small business development.

See full bio ,

What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (10)

Tiffany Connors

Editor

Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.

See full bio

Edited by

What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (11)

Justin Jaffe

Managing editor

Justin Jaffe is the Managing Editor for CNET Money. He has more than 20 years of experience publishing books, articles and research on finance and technology for Wired, IDC and others. He is the coauthor of Uninvested (Random House, 2015), which reveals how financial services companies take advantage of customers -- and how to protect yourself. He graduated from Skidmore College with a B.A. in English Literature, spent 10 years in San Francisco and now lives in Portland, Maine.

See full bio ,

What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (12)

Courtney Johnston

Senior Editor

Courtney Johnston is a senior editor leading the CNET Money team. Passionate about financial literacy and inclusion, she has a decade of experience as a freelance journalist covering policy, financial news, real estate and investing. A New Jersey native, she graduated with an M.A. in English Literature and Professional Writing from the University of Indianapolis, where she also worked as a graduate writing instructor.

See full bio

CNET staff -- not advertisers, partners or business interests -- determine how we review the products and services we cover. If you buy through our links, we may get paid.

Reviews ethics statement

Why You Can Trust CNET Money

Table of Contents

  • What are foreign transaction fees? How do they work?
  • Why do some cards charge foreign transaction fees?
  • Can I avoid foreign transaction fees?
  • How to spot a foreign transaction fee on your credit card
  • Credit cards with no foreign transaction fees
  • Which credit card processors are accepted internationally?
  • Which types of credit cards are accepted internationally?
  • How do you save money when using a credit card internationally?
  • The bottom line
  • FAQs
What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (13)

Written by

Cynthia Paez Bowman

Read more from Cynthia

Cynthia Paez Bowman is a finance, real estate and international business journalist. Besides Bankrate.com, her work has been featured in Business Jet Traveler, MSN, CheatSheet.com, Freshome.com and SimpleDollar.com. She owns and operates a small digital marketing and public relations firm that works with select startups and women-owned businesses to provide growth and visibility. Cynthia splits her time between Los Angeles, CA and San Sebastian, Spain. She travels to Africa and the Middle East regularly to consult with women's NGOs about small business development.

What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (14)

Written by

Tiffany Connors

Editor

Read more from Tiffany

Tiffany Wendeln Connors is a senior editor for CNET Money with a focus on credit cards. Previously, she covered personal finance topics as a writer and editor at The Penny Hoarder. She is passionate about helping people make the best money decisions for themselves and their families. She graduated from Bowling Green State University with a bachelor's degree in journalism and has been a writer and editor for publications including the New York Post, Women's Running magazine and Soap Opera Digest. When she isn't working, you can find her enjoying life in St. Petersburg, Florida, with her husband, daughter and a very needy dog.

Advertiser Disclosure

CNET editors independently choose every product and service we cover. Though we can’t review every available financial company or offer, we strive to make comprehensive, rigorous comparisons in order to highlight the best of them. For many of these products and services, we earn a commission. The compensation we receive may impact how products and links appear on our site.

What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? (2024)

FAQs

What Are Foreign Transaction Fees and Can You Avoid Them When Using a Credit Card Internationally? ›

Foreign transaction fees are fees charged by certain credit cards when you make a purchase in a foreign currency. You can see if a card charges foreign transaction fees, and what amount, on a card's rates and fees or terms and conditions page. Foreign transaction fees vary by card and typically range from 2% to 5%.

Can you avoid international transaction fees? ›

Check with the merchant if to confirm if you'll be charged an international transaction fee. The best way to avoid the international transaction fee is to look for debit and credit cards that allow you to shop overseas without being charged international fees.

What are foreign transaction fees on credit cards? ›

What Is a Foreign Transaction Fee? A foreign transaction fee is a fee charged by a credit card issuer or bank for every transaction made in a country outside of the U.S. Fees vary depending on the credit card or bank's terms and conditions, but usually fall between 1% and 5% of the purchase amount.

Can you use credit cards internationally without fees? ›

Credit cards with no foreign transaction fees give you the freedom to travel internationally and spend money without worrying about the added cost of foreign transaction fees. Start your next trip off right by applying for a Bank of America® credit card with no foreign transaction fees.

How can I avoid international fees? ›

Open a bank account with no foreign transaction fees

Before leaving the U.S., consider finding a checking account that allows you to use your debit card outside of the country with no additional fees. If you'd rather not open a new bank account, ask your bank if they have ATMs in the countries you're traveling to.

How can I avoid fees using my card abroad? ›

Pay in the local currency

You could potentially avoid any currency conversion fees (when transactions are processed in GBP), and in some cases, get a better exchange rate. Check with your lender about whether there are fees for using your credit card abroad.

How to tell if your credit card has no foreign transaction fee? ›

Not all credit cards charge a foreign transaction fee, but many do. To find out if your card does, check the “fees” section of the terms and conditions for your card.

Is it wise to use a credit card abroad? ›

One may wonder how safe it is to carry a Credit Card and forex card for shopping while abroad, or to buy online from international websites. Well, if you are careful enough to observe a few precautions, this mode of payment is quite secure, time-saving, and hassle-free.

Is it better to use a debit or credit card abroad? ›

Top travel credit and debit cards – what we'd go for

It's worth noting that, should things go wrong with something you buy overseas, credit cards offer stronger protection than debit cards – credit cards give Section 75 protection, whereas debit cards give the lesser, but still useful, chargeback protection.

Is Visa or MasterCard better for international travel? ›

Mastercard credit cards are more widely accepted internationally, while Visa cards tend to offer more benefits. But for most consumers, there is no practical difference between Visa and Mastercard. You should only worry about whether to get a Visa or Mastercard if you're torn between two offers.

Can I put my phone on airplane mode to avoid international charges? ›

With Airplane Mode turned on, your device will not be able to connect to cellular service, meaning you will definitely not incur any international roaming charges. But, if you have airplane mode turned on, it also means that you cannot make any calls or send/receive any messages.

Should I turn off mobile data when abroad? ›

Turn off mobile data

If you want to avoid high roaming charges, make sure you turn your mobile data off on all devices before you arrive at your destination. You will still be able to make and receive calls (and be aware that charges will apply for these), but you'll need to connect to Wi-Fi to use any online apps.

How do I use my phone internationally without charges? ›

You can set your phone to airplane mode before arriving at your destination and keep it there while traveling abroad so that your phone doesn't use data. You'll just have to manually connect to Wi-Fi or Bluetooth if you'd like to use these options while abroad.

How do I avoid international transfer fees? ›

Make Cross-Border Payments

Digital wallets are independent of banks and can hold funds in multiple currencies, with transparent exchange rates. Because of this, they can circumvent many of the fees and costs associated with wire transfers, making it even easier to send money abroad, all over the world.

Can international transaction fees be waived? ›

It's possible to get a foreign transaction fee waived, but it isn't easy. Call your credit card issuer's customer service department and request that they waive the fee. It works best if you've had the credit card for many years, but even then, there's no guarantee the issuer will waive the fee.

How do I make international transactions without charges? ›

Use a Forex Card

A forex card, also known as a travel card, is a prepaid card loaded with foreign currency. Using a Forex card for international transactions can help you avoid Forex charges. Simply load the card with the currency you need before travelling.

How not to pay international fees? ›

Always make payments in the local currency

When you use a credit card at a shop or restaurant, they may ask you which currency you'd like to pay in — your home currency or the local currency. Always pick the latter. If you choose your home currency, you'll get hit with a conversion fee on top of your bill.

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