Will I be charged for using my debit card abroad? (2024)

FAQs

Will I be charged for using my debit card abroad? ›

Foreign transaction fees can add up fast when using your debit card abroad. The fees are often 1% to 3% of the amount of a purchase, and many banks also apply the fee to ATM withdrawals. Below, we compare the amount financial institutions charge to make an international ATM withdrawal or debit card purchase.

There may be additional charges from cash machines or banks when you withdraw money abroad or in a foreign currency. Check before you make the transaction.

Foreign ATM and transaction fees

Foreign transaction fee: Sometimes called a currency conversion fee, this applies for foreign transactions made with a debit card. It usually ranges from 1% to 3% of the purchase amount. Foreign transaction fees for credit cards work similarly.

As long as you have a credit card with no foreign transaction fees, notify your credit card company of your travel plans, and only pay for purchases expressed in terms of the local currency, you should be able to avoid post-trip credit statement surprises.

The best way to avoid foreign transaction fees is to acquire a no-foreign-transaction-fees credit card, if you qualify for one. Next in line are checking accounts or debit cards with no foreign transaction fee. It is also possible to avoid the fee by paying in the local currency for purchases.

International ATM fee: This is usually a combination of a flat fee and a percentage of the amount withdrawn. Typically, fees range from $1 to $5. Foreign transaction fee: Also known as a currency conversion fee, this fee can range from 1% to 3% of the total purchase amount.

When you pay by Visa debit card you're protected against fraud for any unauthorised spending. It may be a good idea to make card payments in local currency and avoid paying the local currency conversion charges.

Whether you should use a debit card for travel depends on your own circ*mstances. For instance, you should avoid using a debit card in another country if you'll be hit with high foreign transaction fees and ATM fees.

Banks that have no foreign transaction fees on at least some credit card purchases, ATM withdrawals and debit card transactions include Capital One and HSBC.

Can I use my debit card overseas? ›

Your card is compatible with most overseas ATMs. Just make sure the ATM accepts Visa cards and be sure to select Credit when making your withdrawal. Please be aware that overseas transaction fees will apply. Additional ATM operator fees may also apply.

While there are some situations where it may make sense to use DCCs, it's usually better to pay in the local currency – especially if you use a credit card that doesn't charge foreign transaction fees.

Many banks offer credit cards with no foreign transaction fees, including the HSBC Low Interest Rate Credit Card and the Westpac Lite Credit Card for example. Or as an alternative, check out a non-bank provider like Wise or Revolut for a no foreign transaction fee card with low overall fees.

With the Starling Bank account you do not pay any fees to withdraw foreign currency from a cash machine while anywhere in the world outside Europe.

International transactions usually have a foreign exchange markup fee, but most cards charge less than 3% and some have no fees at all. The Fi-Federal debit card offers zero forex charges depending on the account type .

Discover® Bank

Discover doesn't charge foreign ATM network or foreign transaction fees. But Discover card acceptance can be limited outside of the U.S., Canada, Mexico and some Caribbean nations. With an HSBC Premier Checking account, customers pay no foreign transaction fees. HSBC also has a worldwide network of ATMs.

If you need cash from an ATM, it's usually better to use a debit card, because credit cards often charge a high interest rate for a cash advance. Major credit cards are generally accepted, especially in cities. Check with your card issuer about foreign transaction fees and currency exchange fees.