Yes, many debit cards charge a conversion fee (often called a foreign transaction fee) when used for purchases or ATM withdrawals in a foreign currency, typically ranging from 1% to 3% of the transaction amount. These fees are applied by the bank or payment network (like Visa or Mastercard) to convert currency.
For foreign currency transactions converted by Visa/Mastercard, a conversion factor of 1% is applied on the converted amount. For foreign currency transactions converted by UnionPay, a conversion factor of 0.6% is applied on the converted amount.
Yes, many debit cards charge foreign transaction fees (FTFs) and ATM fees when used abroad, typically 1% to 3% of the transaction, but you can find cards, often from online banks or credit unions, that offer no foreign transaction fees and sometimes even reimburse ATM fees, making it crucial to check your bank's policy before traveling.
Key benefits of using a debit card abroad
Debit cards are a solid option for cost-aware travelers, as they offer direct access to your bank account without the potential for overspending. One of the key benefits is the ability to withdraw cash from ATMs with relatively low fees, depending on your bank.
To avoid currency conversion fees abroad, always choose 'local currency' whether you're withdrawing cash from an international ATM or spending on a prepaid travel money card.
Avoid multiple currency conversion fees: If you use a credit or debit card while travelling, your bank may charge you currency conversion fees for each transaction. With a travel card, your funds will already be in the currency of the country in which you are travelling, so this may be avoided.
Your card statement should spell out out international-transaction fees as line-items, but of course by the time you get your statement, it's too late. Before you leave home, call your bank or credit-card company and quiz them about the specific fees that come with using their card overseas.
State-by-State Legality
As of June 2025 surcharges are prohibited or restricted in the following: California. Connecticut. Maine.
The average processing fee for debit card transactions is 34 cents in interchange plus your processor's markup.
Yes, it is generally illegal for U.S. merchants to charge an extra fee (surcharge) on debit card purchases, with major card networks prohibiting it, reinforced by federal law (Durbin Amendment) and various state laws, though some states have specific bans or restrictions, making it a complex area where merchants often illegally pass on costs as surcharges or convenience fees.
The following steps will help you avoid foreign transaction fees:
For debit cards with no foreign transaction fees, top choices include Charles Schwab Investor Checking (reimburses ATM fees), Capital One 360 Checking (no fees, but local ATM fees may apply), SoFi Checking, Fidelity Cash Management, and digital options like Revolut or Wise, which offer good currency exchange rates and low costs abroad, though some may have limits or weekend currency exchange charges. Always check for potential ATM fees from the local bank owning the machine, even with a no-fee debit card.
Yes, it is generally illegal for U.S. merchants to charge an extra fee (surcharge) on debit card purchases, with major card networks prohibiting it, reinforced by federal law (Durbin Amendment) and various state laws, though some states have specific bans or restrictions, making it a complex area where merchants often illegally pass on costs as surcharges or convenience fees.
Quick Answer. Whether you should use a debit card for travel depends on your own circumstances. 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.
Foreign transaction fees are charged by card issuers. Currency conversion fees are charged by credit card payment networks for exchanging one country's legal tender for another. Both fees may sometimes be combined and referred to together as a foreign transaction fee.
Gas stations, bars, restaurants and online shopping are the riskiest places to use debit cards due to skimming vulnerability. Contactless payments and credit cards offer better security than traditional debit cards. Monitor your checking account daily and report suspicious activity immediately to minimize fraud losses.
Bank Transfer
Bank transfers are usually the cheapest option when it comes to funding your international money transfer with Wise. Bank transfers can be slower than debit or credit cards, but they usually give you the best value for your money. Read more how to use bank transfers as a payment option.
The 2/3/4 rule: According to this rule, applicants are limited to two new cards in 30 days, three new cards in 12 months and four new cards in 24 months. The six-month or one-year rule: Some credit card issuers may let borrowers open a new credit card account only once every six months or once a year.
The EQ Bank Card works just like any other card you use to spend what you want, where you want, and when you want. Almost anywhere in the world where Mastercard ® is accepted—that's more than 210 countries, by the way—with no foreign transaction fees 1.
Always select to pay in local currency
Whether you're paying in a restaurant, bar or local souvenir shop, don't agree to the transaction being in pounds. It could cost you more than paying in the local currency. Point-of-sale currency conversion rates are set by the retail outlet and they're usually less favourable.