What is a foreign transaction fee?

A charge, usually 1% to 3% of each purchase, that many banks add when you pay in another currency or with a merchant outside your country. It applies to card payments and to cash withdrawals, and it is separate from the exchange rate itself.

Should I pay in my home currency when a card terminal offers it?

No. This is called dynamic currency conversion. The shop's bank chooses the exchange rate and typically marks it up by about 5%. Always choose the local currency and let your own card network convert it.

Is it cheaper to change cash before I travel or at the airport?

Usually neither. Airport exchange counters commonly keep 8% to 12% between their buying and selling rates. Withdrawing local currency from a bank cash machine on arrival with a low-fee card is almost always cheaper.

How do I avoid these fees altogether?

Use a card with no foreign transaction fee for purchases, a bank or account that waives or refunds cash-machine fees for withdrawals, and always pay in the local currency.

Tools · Updated daily

What paying abroad really costs.

A favorable exchange rate is easy to give back in fees. Enter a trip and see what four common ways of paying cost on top, in your own currency and in days of travel.

Questions people ask

What is a foreign transaction fee?: A charge, usually 1% to 3% of each purchase, that many banks add when you pay in another currency or with a merchant outside your country. It applies to card payments and to cash withdrawals, and it is separate from the exchange rate itself.
Should I pay in my home currency when a card terminal offers it?: No. This is called dynamic currency conversion. The shop's bank chooses the exchange rate and typically marks it up by about 5%. Always choose the local currency and let your own card network convert it.
Is it cheaper to change cash before I travel or at the airport?: Usually neither. Airport exchange counters commonly keep 8% to 12% between their buying and selling rates. Withdrawing local currency from a bank cash machine on arrival with a low-fee card is almost always cheaper.
How do I avoid these fees altogether?: Use a card with no foreign transaction fee for purchases, a bank or account that waives or refunds cash-machine fees for withdrawals, and always pay in the local currency.

The fee levels are typical published figures, not quotes from your bank; move the sliders to match your own card. General information, not personal financial advice.