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.
Banks with no debit card foreign transaction or ATM fees
Capital One 360
Capital One’s online bank stands apart from many banks because it doesn’t charge a currency conversion fee or a fee for using a foreign ATM network. If an out-of-network ATM operator charges you a fee, however, it won’t be reimbursed by Capital One 360.
Charles Schwab Bank
This brokerage firm’s banking unit doesn't charge a fee when you use its debit card at an ATM overseas, and it offers unlimited reimbursem*nts for ATM fees from cash withdrawals worldwide, regardless of the network used. And it doesn't charge currency conversion fees for debit card transactions.
Discover® Bank
Discover doesn’t charge foreign ATM network or foreign transaction fees. But Discover card acceptance can be limited outside of the U.S., Canada, Mexico and some Caribbean nations.
HSBC
With an HSBC Premier Checking account, customers pay no foreign transaction fees. HSBC also has a worldwide network of ATMs.
Varo Bank
The mobile-only banking app Varo joins the ranks of other travel-friendly banks. It charges no foreign transaction fees or ATM fees at over 40,000 Allpoint® ATMs. (There is a $3.50 charge on out-of-network and international ATMs.)
*Foreign debit card purchase cost refers to foreign transaction fees — often 1% to 3% — and currency conversion fees (if applicable). These fees will typically show up on your monthly statement.
**Foreign ATM withdrawal cost refers to out-of-network ATM fees plus any foreign transaction fees (if applicable).
Note: Some ATM owners tack on their own fee in addition to what your bank may charge. People with premium checking accounts might be eligible for certain fee waivers.
How do I avoid foreign transaction fees on my debit card?
You may want to consider switching to a bank with no foreign transaction fees. Travelers can also benefit from a credit card that skips these fees, especially if you go abroad frequently.
And no matter where you bank, let your financial institution know where you'll be traveling before you depart to avoid any unwarranted fraud alerts on your account.
First Direct. When you were abroad, First Direct used to charge a 2.75% conversion fee every time you used your card to buy something or withdraw cash. ...
Starling Bank. The Starling Bank current account is free. ...
Discover doesn't charge foreign ATM network or foreign transaction fees. But Discover card acceptance can be limited outside of the U.S., Canada, Mexico and some Caribbean nations. With an HSBC Premier Checking account, customers pay no foreign transaction fees. HSBC also has a worldwide network of ATMs.
The Chase debit cards that they show on their website charge a fee of 3% on every transaction you make in a currency that isn't US dollars. That covers ATM withdrawals, cash transactions away from ATMs, and purchases you make with your card.
It's worth noting that, should things go wrong with something you buy overseas, credit cards offer stronger protection than debit cards – credit cards give Section 75 protection, whereas debit cards give the lesser, but still useful, chargeback protection.
One such platform that is known for its zero forex charges is Fi Money. The Fi-Federal co-branded debit card offers you several features, including zero Forex charges on select plans, the ability to make contactless payments using the 'Tap and Pay' feature, and transaction limits that you can set from the app.
Many banks offer credit cards with no foreign transaction fees, including the HSBC Low Interest Rate Credit Card and the Westpac Lite Credit Card for example. Or as an alternative, check out a non-bank provider like Wise or Revolut for a no foreign transaction fee card with low overall fees.
Yes, cards issued by U.S. Bank can be used in most foreign countries. If you're planning to travel and want to use your card, let us know. This will help reduce declined transactions on your trip. Knowing your trip details also helps us protect you from fraud.
There are five cards that do not charge a foreign transaction fee. They are the Scapia Federal Bank Credit Card, Axis Bank Burgundy Private Credit Card, RBL World Safari Credit Card, Club Vistara IndusInd Explorer Credit Card, and IDFC First Wow Credit Card.
Introduction: My name is Kimberely Baumbach CPA, I am a gorgeous, bright, charming, encouraging, zealous, lively, good person who loves writing and wants to share my knowledge and understanding with you.
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