What Is a Foreign Transaction Fee?
A foreign transaction fee is a 1% - 3% surcharge that roughly 90% of credit cards add to transactions processed outside of the U.S. This type of fee, also called an international transaction fee, can apply when you’re traveling abroad or when you’re making purchases from internationally based merchants online or by phone.
Key Things to Know About Foreign Transaction Fees
- Who charges them? A foreign transaction fee is generally the combination of charges assessed by the card network (e.g. Mastercard, Visa) and a fee that card’s issuer (e.g. Bank of America, Citi) charges on top of that. The issuer decides exactly what foreign fee the card ultimately has.
- When they apply: You owe a foreign transaction fee when you make a purchase from a foreign merchant in-person, online or over the phone.
- How much they are: Foreign transaction fees typically range from 1% to 3% of the transaction amount. The average is 1.57%.
- Types of cards that have them: It’s common for both credit cards and debit cards to charge foreign transaction fees.
- How to avoid them: You can get a no-foreign-fee credit card or debit card.
Opinions and ratings are our own. This content is not provided, commissioned or endorsed by any issuer. WalletHub independently collected information for some of the cards on this page. Offers information was collected on April 30, 2025 and is likely to have changed since.
How to Avoid Foreign Transaction Fees
The only way to avoid credit card foreign transaction fees is to use a card that doesn’t charge them. There are plenty of cards, particularly those that focus on travel rewards, that do not charge any fee for making purchases from foreign merchants. Such cards are becoming increasingly common, and some issuers, such as Capital One, Discover, USAA and HSBC, have even removed foreign fees from all of their credit cards.
Since credit cards are by far the cheapest means of currency conversion, it pays to have a no foreign transaction fee credit card in your wallet so you don’t end up incurring unnecessary expenses.
You can learn all about the best credit cards with no foreign transaction fees here on WalletHub.
How Much Are Foreign Transaction Fees?
Foreign transaction fees typically range from around 1% to 3% of the cost of the transaction. So if you make a $100 purchase from a foreign merchant, you can expect to have another $1 to $3 tacked on, unless you have a card that doesn’t charge a foreign transaction fee. The average foreign transaction fee is 1.57%, according to WalletHub’s Credit Card Landscape Report.
That can add up quickly, and around 4 in 5 Americans think foreign transaction fees are a rip-off, according to our Foreign Transaction Fee Survey. At the same time, 1 in 3 people don’t even know if their card charges such a fee.
In order to provide a more complete picture of the foreign transaction fee landscape, WalletHub compared offers from the 10 largest banks and 10 largest credit unions, identifying the best offers of the bunch and more. You can check out our findings in the tables below.
Foreign Transaction Fees by Major Bank
| Issuer | Foreign Transaction Fee | Popular No Foreign Fee Offer | International Calls |
|---|---|---|---|
| American Express | Up to 2.7% of each transaction after conversion to US dollars | American Express® Gold Card | 1-336-393-1111 |
| Bank of America | Up to 3% | Bank of America® Travel Rewards credit card | 1-302-738-5719 |
| Capital One | No foreign fees | Capital One VentureOne Rewards Credit Card | Check issuer website |
| Chase | Up to 3% of each transaction in U.S. dollars | Chase Sapphire Preferred® Card | 1-302-594-8200 |
| Citibank | Up to 3% | Citi® / AAdvantage® Platinum Select® World Elite Mastercard® | 1-605-335-2222 |
| Discover | No foreign fees | Discover it® Miles | 1-801-902-3100 |
| HSBC | No foreign fees | HSBC Premier World Credit Card | 1-716-841-7212 |
| PNC | Up to 3% | PNC Cash Unlimited® Visa Signature® Credit Card | 1-412-803-7787 |
| USAA | No foreign fees | USAA Eagle Navigator® Credit Card | 1-800-531-8722 |
| U.S. Bank | Up to 3% | U.S. Bank Altitude® Connect Visa Signature® Card | 1-503-401-9991 |
| Wells Fargo | Up to 3% | Wells Fargo Autograph® Card | 1-925-825-7600 |
Foreign Transaction Fees by Credit Union
Foreign Transaction Fee Tips
Like much about credit cards, foreign transaction fees can be confusing. With that in mind, we’ve compiled a quick list of tips to help clarify the situation and enable you to avoid making mistakes.
- Get a card with no foreign fee: Getting one of the many credit cards that don’t charge a foreign transaction fee prevents you from ever having to worry about this issue in the first place.
- Know which purchases are affected: Remember that you don’t actually need to leave American soil to be charged a foreign transaction fee. Any time you make a purchase online or over the phone that is processed through an overseas merchant, you will be charged this fee. If the prices on a website are quoted in a foreign currency, that’s a good indication you are transacting with an international merchant.
- Avoid dynamic currency conversion: You should keep an eye out for dynamic currency conversion. This happens when an overseas merchant offers to convert your credit card transaction from the local currency into U.S. dollars. While it may sound tempting to see your transaction in a currency that you are familiar with, you should always refuse this offer. Many merchants will charge exorbitantly high exchange rates, as high as 7%, to do the conversion and pocket the difference as a fee.
- Set up a travel notice: Always call your credit card company before using your credit card to make purchases abroad so they do not become suspicious and lock your account due to fraud concerns.
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