How to avoid foreign transaction & currency conversion fees while traveling abroad

Heading overseas? Whether you’re traveling for business, pleasure, or to see family, there’s one thing you don’t want coming home with you: surprise fees. Foreign transaction and currency conversion fees can sneak up on you like jet lag, quietly inflating your spending. However, with a bit of planning, you can dodge most of them.

Here’s a breakdown of what these fees are, where they hide, and the best ways to avoid fees like these when traveling internationally.

What is a foreign transaction fee?

A foreign transaction fee is applied when you make international transactions or purchases in a foreign currency. Typically, these fees are around 1% to 3% per transaction and may consist of different fees charged by the payment processor (Visa or Mastercard) and your debit or credit card issuer.

Even if you’re shopping online from a U.S.-based website with prices shown in USD, but the payment is processed by a foreign bank, you could still get hit with this fee. It adds up quickly, especially on longer trips or big-ticket purchases. 

That’s also on top of other fees, such as international ATM withdrawal fees and payment processor fees.

Examples of international transaction fees

Below is a list of banks and their foreign transaction fees. Note that fees may vary depending on your card issuer or bank.

Bank of America

Bank of America charges a total foreign transaction fee of 3%. This includes both the issuer fee and network fee. This fee may be waived for certain accounts. For example, if you have a Travel Rewards or Premium Rewards credit card, you won’t be charged for foreign transaction fees. 

Need to withdraw cash using your Bank of America ATM or debit card? There’s a $5 usage fee¹ per withdrawal or balance inquiry, aside from the ATM operator access fee, if you’re using a non-Bank of America ATM. 

Chase

If you’re planning to use your Chase debit card internationally, you’ll likely encounter the following charges: foreign transaction fee (3%), international ATM withdrawal fee, and foreign exchange rate adjustment fee. As for currency exchange rates and fees, Chase applies the following: the applicable Visa or Mastercard rate for international transactions and a 3% foreign transaction fee.

Banks and credit cards that don’t charge foreign transaction fees

Some financial institutions understand that you shouldn’t have to pay extra just for using your own money abroad. A number of U.S. banks and credit card providers offer products that waive foreign transaction fees entirely. Here are a few popular options:

• Capital One. According to Capital One², none of their U.S.-issued credit cards, such as Venture or Quicksilver, have foreign transaction fees. You may want to check their rates and disclosures³ for more information on other charges like annual fees. 
• Chase. Chase offers credit cards with no foreign transaction fees, such as the Chase Sapphire Preferred and Chase Sapphire Reserve cards. Note that these may include variable annual fees. Check the terms here.⁴
• Bank of America. Bank of America also offers several options that waive foreign transaction fees on credit cards. Note that some of these cards may come with an annual fee. Credit cards with no foreign transaction fees include:
  -Travel Rewards
  -Premium Rewards
  -Premium Rewards Elite
  -Travel Rewards for Students
  -Travel Rewards Secured
• Discover. Online bank Discover doesn’t charge foreign transaction fees when you use its Discover Credit card overseas. 
• Schwab Bank. Schwab Bank⁵ doesn’t assess foreign transaction fees when you make an ATM withdrawal or pay for international purchases in foreign currency. Note that this applies to Schwab Bank investor Checking accounts with Schwab Bank Visa Platinum Debit Cards. However, ATM operators or merchants may charge an international transaction fee.

Using foreign partners of your bank

Many major U.S. banks have international partnerships that let you withdraw cash or perform transactions without additional fees. For example, Bank of America partners with banks like BNP Paribas (France) and Barclays (U.K.). 

Before your trip, check your bank’s website for a list of partners and eligible countries. Using a partner bank’s ATM can help reduce not just ATM fees but also additional international transaction fees associated with third-party withdrawal networks. 

Using money transfer services to avoid high transaction fees

Need to send money to yourself or family abroad? Traditional wire transfers and credit card transactions often involve hidden charges and variable exchange rates. 

Here’s where BOSS Money stands out, offering:

• Low transfer fees and competitive exchange rates
• Cash pickup, mobile wallet, bank deposit, direct debit, and home delivery options
• The ability to send money even without a credit card

This is especially helpful for immigrants or travelers without a U.S. credit card or bank account. Instead of using a card and paying additional fees, you can visit a BOSS Money offline store or local retail partner and send cash directly.  

For example, if you’re traveling to Mexico, instead of paying an international transaction fee for using your card, you can send money to yourself via BOSS Money. Arrange for cash pickup, which is often faster and more affordable, at BOSS Money partners like 7-11, Oxxo, and Ferrelaza. Note that transfer limits vary by country, pickup location, and local regulations.

How to avoid currency conversion fees overseas

Currency conversion fees are often embedded in dynamic currency conversion (DCC), where you’re asked whether to pay in U.S. dollars or the local currency. It might sound convenient to choose USD, but don’t do it. 

Here’s why:

• The merchant or ATM operator determines the exchange rate, and transactions may entail hidden fees
• You’ll usually end up paying more than if your card processed it in the local currency

Aside from paying in the local currency, you can also use multi-currency apps or wallets, bring a small amount of local cash, or use BOSS Money to transfer local currency directly. 

Avoiding ATM fees abroad

ATM fees abroad can include a surcharge from the foreign ATM provider, a fee from your home bank for using an out-of-network ATM, or possibly an additional currency conversion fee. Plus, there’s no guarantee you’ll get the best exchange rates as these tend to fluctuate. 

Here’s how to sidestep these international transaction fees:

• Withdraw cash less often and try to get larger amounts. For example, instead of paying $5 every time you withdraw $100, take out $400 and minimize how often you’re charged. 
• Sign up for an account that refunds out-of-network withdrawals like Chase Sapphire or Private Client.
• Pay in the local currency. Dynamic currency conversion may be convenient since it eliminates guesswork, but you might be charged additional fees and not get the best exchange rates.
• Exchange your money in your destination’s local currency before leaving your home country. By paying in cash, you can avoid additional fees, but make sure to have a backup payment method in case an establishment doesn’t accept cash. 
• Avoid independent ATMs like those found in airports or hotels. These may charge higher fees and have poor exchange rates. 
• Using services like BOSS Money to avoid ATMs altogether.

Final thoughts

Foreign transaction and currency conversion fees might seem small at first, but over a week or two of travel, they can chip away at your budget.

Now you know better. With the right cards, smarter ATM withdrawal strategies, and services like BOSS Money, you can spend more time enjoying your trip and less time worrying about fees. 

Need to send yourself cash while traveling abroad? Try BOSS Money for fast, secure, and low-fee money transfers. See how BOSS Money transforms the way you send and receive money.

Sources: all third party information obtained from applicable website as of July 31, 2025

1. https://locators.bankofamerica.com/international.html

2. https://www.capitalone.com/learn-grow/money-management/no-foreign-transaction-fee-credit-card/

3. https://www.capitalone.com/credit-cards/compare/

4. https://creditcards.chase.com/no-foreign-transaction-fee-credit-cards

5. https://www.schwab.com/checking

This article is provided for general information purposes only and is not intended to address every aspect of the matters discussed herein. The information in this article is not intended as specific personal advice. The information in this article does not constitute legal, tax, regulatory or other professional advice from IDT Payment Services, Inc. and its affiliates (collectively, “IDT”), and should not be taken or used as such by any individual. IDT makes no representation, warranty or guaranty, whether express or implied, that the content in this article is current, accurate, or complete. You should obtain professional or other substantive advice before taking, or refraining from, any action on the basis of the information in this article.