What is the Mastercard foreign transaction fee?

The Mastercard foreign transaction fee is usually 0% or 3%, depending on which card you have and the bank or credit union that issued it. Generally, foreign transaction fees apply every time you make a purchase at a physical location in a foreign country or an online transaction through an internationally-based merchant. So, if you’re travelling a lot, make sure to get a Mastercard that doesn’t charge this fee.

Keep in mind that the Mastercard foreign transaction fee comes in two parts. Mastercard, as a credit card network, always charges a 1% fee. Then, the Mastercard credit card issuer can choose to add their own fee on top of that, or cover the card network’s fee for you. If your card’s foreign fee is higher than 1%, it means the issuer added their own fees. If your Mastercard credit card’s foreign transaction fee is 0%, it’s because the issuer pays the 1% network fee for you.

Notable Mastercard Credit Cards with No Foreign Fees

It’s worth noting that Mastercard foreign transaction fees and Visa foreign transaction fees are pretty similar. Some cards charge as much as 3%. Others don’t charge a dime. Also, like Mastercard, Visa credit cards benefit from extensive worldwide acceptance.

The best approach is to compare no foreign transaction fee credit cards on both the Visa and Mastercard networks. Check your credit score to see which ones you could get approved for. Then, find the card with the best collection of rewards, rates, and fees for your needs. If you’re approved, you’ll save up to 3% on each foreign transaction.