To waive foreign transaction fees, use a credit card or debit card with no foreign transaction fees, pay in the local currency (not your home currency) to avoid dynamic conversion, and consider using a bank that reimburses international ATM fees, or exchange cash before traveling to pay in cash, though this carries risk.
The following five solutions will help you better understand how to avoid foreign transaction fees:
If you're getting a bad deal, consider getting a new card.
Reputable no-fee cards include those from Capital One, as well as Charles Schwab debit cards. Most credit unions and some airline loyalty cards have low-to-no international transaction fees.
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.
Disable roaming
To prevent roaming charges completely when travelling, put your smartphone on Airplane or Flight mode. If you still want your device available for voice calls or texts, turn data roaming off.
The 2/3/4 rule is a guideline, primarily used by Bank of America, that limits how many new credit cards you can get: no more than 2 in 30 days, 3 in 12 months, and 4 in 24 months, helping to prevent over-application and manage hard inquiries on your credit report. While not universal, it's a useful benchmark for responsible card application, though other banks have different rules (like Chase's 5/24 rule).
Credit cards are likely to remain more widely accepted than debit cards, especially cross-border. However, withdrawing money from ATMs abroad and the currency exchange associated with international transfers are often much cheaper with a debit card than with a credit card.
Yes, you can avoid foreign transaction fees by using credit/debit cards with no foreign transaction fees, paying in the local currency, using digital wallets, carrying some cash, or choosing banks with global ATM networks and fee reimbursements, saving you 1-3% on every transaction abroad.
What is a foreign transaction fee? A foreign transaction fee is a charge assessed by your credit card issuer on transactions made in any currency other than U.S. dollars (USD). This isn't just limited to brick-and-mortar locations abroad. It also includes websites based outside of the U.S.
Major banks offering no foreign transaction fees on debit and/or credit cards include Capital One, Charles Schwab, Discover, and HSBC, with options like Capital One 360 Checking, Schwab Bank Investor Checking (which refunds all ATM fees), and Discover Debit providing fee-free international spending and ATM use, though some may have card acceptance limitations or require specific account types. Other banks like Ally, Fidelity, and USAA also offer accounts that waive these fees, making them great for travelers.
A debit card is ideal for travellers looking to stay within budget and avoid overspending since it draws directly from your bank account. A credit card is better for those who prioritise flexibility, safety, and access to perks like travel rewards, insurance, and fraud protection.
What Is the 15/3 Rule?
Mastercard is better for international travel than Visa because Mastercard is accepted in more countries and territories (over 210) than Visa (200). Both are widely accepted nearly everywhere you're likely to travel, though, and each network supports credit cards that are excellent for traveling abroad.
The best Mastercard with no foreign transaction fee is the Capital One Venture Rewards Credit Card because it offers a sign-up bonus of 75,000 miles for spending $4,000 on purchases within 3 months from account opening (the bonus is worth $750 in travel). Plus, you can earn 2 - 5 miles per $1 spent on purchases.