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Using a US Credit Card Abroad: Foreign Transaction Fees, Currency Conversion and Cash

By PointsExplainedLast reviewed

Check your card's foreign transaction fee

It must be disclosed in the card's pricing table and agreement. It can apply to online purchases from merchants based abroad, not just to travel.

Pack a card without one

Cards that don't charge a foreign transaction fee are listed at /us/credit-cards/no-foreign-transaction-fee.

Choose the local currency

If a terminal or ATM offers to charge you in dollars, that is dynamic currency conversion, which Visa says includes an exchange rate and additional fees. Visa says merchants should give you the choice to decline.

Avoid credit card cash withdrawals

Cash advances carry fees and start accruing interest immediately, with no grace period.

Keep receipts and check your statement

Billing error notices must reach your issuer within 60 days after the statement showing the error was sent.

Where this comes from

Sources

The documents this guide relies on. If one has changed since we read it, the document is right and this guide is out of date.

  1. Official interpretation of Regulation Z 1026.60, comment 60(b)(4)-2 (CFPB)

    Purchase transaction charges include fees for purchases in a foreign currency, outside the United States, or with a foreign merchant.

    consumerfinance.gov · Accessed
  2. Regulation Z, 12 CFR 1026.60 - Credit and charge card applications and solicitations (CFPB)

    Transaction charges for purchases must be disclosed in the application table.

    consumerfinance.gov · Accessed
  3. Official interpretation of Regulation Z 1026.4, comment 4(a)-4 (CFPB)

    Comment 4(a)-4: foreign transaction fees include fees on transactions in a foreign currency, in U.S. dollars outside the U.S., or with a foreign merchant; can combine network and issuer charges passed on to the consumer; 1 percent plus 2 percent example totalling 3 percentage points.

    consumerfinance.gov · Accessed
  4. Visa - Decoding Dynamic Currency Conversion

    If a merchant offers DCC, paying in your home currency includes an exchange rate and additional fees; required disclosures on screen and receipts (amounts in both currencies with symbols, exchange rate, fees or markup); choice to accept or decline; merchants must not choose for you; decline and report to your issuer if details are missing or you feel pressured; the choice is yours.

    visa.com · Accessed
  5. CFPB - Can I withdraw money from my credit card at an ATM?

    Cash advance is a short-term loan; flat or percentage fee; ATM fees; higher interest rate; interest starts immediately; separate lower cash advance limit; check terms before relying on one.

    consumerfinance.gov · Accessed
  6. FTC Consumer Advice - Using Credit Cards and Disputing Charges

    Billing errors include wrong amounts, double billing and things not delivered as agreed.

    consumer.ftc.gov · Accessed
  7. Regulation Z, 12 CFR 1026.13 - Billing error resolution (CFPB)

    Billing error notice must be received within 60 days after the first statement reflecting the error.

    consumerfinance.gov · Accessed
  8. Regulation Z, 12 CFR 1026.12 - Special credit card provisions (CFPB)

    Claims and defenses limited to credit extended over $50 for transactions in the same state as the cardholder's current designated address or within 100 miles, with exceptions; $50 cap on unauthorized use.

    consumerfinance.gov · Accessed
  9. CFPB - How can I get a refund on a product or service I purchased with my credit card?

    Contact your credit card company to see whether you can dispute a charge; in some cases it can reverse the charge (sometimes called a chargeback).

    consumerfinance.gov · Accessed
  10. CFPB - Am I responsible for unauthorized charges if my credit cards are lost or stolen?

    No liability for unauthorized charges if the card is reported missing before it is used; $50 maximum otherwise.

    consumerfinance.gov · Accessed
Questions

About this guide

Should I pay in dollars or the local currency abroad?

Being offered dollars abroad means dynamic currency conversion. Visa explains that paying in your home currency this way includes an exchange rate and additional fees, which must be shown to you, and that the choice to accept or decline is yours. Declining means you don't take the conversion and its fees, although your own card's foreign transaction fee can still apply.

Do foreign transaction fees apply to online purchases from overseas stores?

They can. Regulation Z's official interpretation includes fees for purchases with a foreign merchant, not just purchases made abroad or in a foreign currency.

Can I use my credit card at an ATM overseas?

You may be able to, but it is a cash advance. The CFPB says you may pay a fee, ATM fees and a higher interest rate, with interest starting as soon as you withdraw the money.
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