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Traveling abroad? Know What Exchange Rates Your Credit Card Charges

Traveling abroad? Know What Exchange Rates Your Credit Card Charges

*Editorial Note: The content of this article is based on the author’s opinions and recommendations alone. It may not have been reviewed, approved or otherwise endorsed by the credit card issuer. This site may be compensated through a credit card issuer partnership.

This article was last updated Dec 06, 2018. Terms and conditions may have changed. For the most accurate information, please consult the issuer website.

There’s a lot of planning involved when traveling abroad, from booking airfare and hotels to figuring out what sites you want to see. But one thing that travelers sometimes don’t calculate is how much it could cost every time they swipe their credit card.

No one wants to see a nasty surprise — a pile of expensive fees — on credit card or bank statements when returning home from a trip abroad, but it happens all too often if you don’t know what to expect.

Before leaving the country, you should know what fees your credit or debit cards charge, where you’ll get foreign currency while traveling, which outlets (such as airport kiosks or local ATMs) offer the best exchange rates and how many of these options come with extra fees.

Exchange rates for top currencies

The good news is you can see what exchange rate you’ll be offered when you use a Mastercard® or Visa® for foreign purchases by checking online. Their rates are always better when you compare them with currency exchange companies such as Travelex (either online or at the airport).

Below are the rates we found as of Nov. 28, 2018, for exchanging dollars into popular foreign currencies with the top credit card issuers, along with exchange company Travelex.

Mastercard Visa Travelex
British Pounds 0.785 0.786 0.71
Euros 0.887 0.887 0.81
Japanese Yen 114.03 113.85 101.19
Mexican Pesos 20.50 20.50 18.14
Canadian Dollar 1.336 1.333 1.18

 

Here are sites to check the exchange rates on foreign transactions your card will use in real time:

American Express doesn’t have a dynamic site where cardmembers can check exchange rates.

Beware of dynamic currency conversion

When it’s time to pay with a credit or debit card when traveling abroad, many merchants will often offer U.S.-based credit card users the choice to pay in the local currency or in U.S. dollars. Choosing dollars and not having to worry about conversion rates may, at first glance, seem like a no-brainer.

But if you look at the fine print on your receipt, you’ll discover that you’re paying a premium when choosing to pay in U.S. dollars, which is called dynamic currency conversion (DCC). Merchants can use a conversion rate higher than the going rate, even profiting from the transaction. And if your card charges a foreign transaction fee on top of that (which typically ranges from 1% to 3%), you may end up paying dearly for overseas purchases.

So, when paying with a card while traveling abroad, it’s always best to ask that your purchase is processed using the local currency rather than U.S. dollars, as your card issuer will always provide the better exchange rate without incurring any dynamic currency conversion fees.

Foreign transaction fees

The savviest travelers know to always pack a credit card or two that doesn’t assess a fee for foreign purchases. And if you don’t have one, it’s best to apply for one before your trip. Some no foreign transaction fee cards charge an annual fee as well, but not all do.

The travel perks that come with some annual-fee cards may balance out, especially if you regularly spend on the card outside of the country. Below is our list of some credit cards that don’t charge foreign transaction fees, broken down by those that come with and without annual fees:

No foreign transaction fee cards with $0 annual fee

  • 0% for 14 months on purchases and Balance Transfers, then 11.99% - 22.99% Variable.

  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate. Plus, earn unlimited 1% cash back on all other purchases – automatically. *

  • Get a dollar-for-dollar match of all the cash back you've earned at the end of your first year, automatically*

Highlights
  • INTRO OFFER: Unlimited Cashback Match – only from Discover. Discover will automatically match all the cash back you’ve earned at the end of your first year! There’s no minimum spending or maximum rewards. Just a dollar-for-dollar match.
  • Earn 5% cash back on everyday purchases at different places each quarter like Amazon.com, grocery stores, restaurants, gas stations and when you pay using PayPal, up to the quarterly maximum when you activate.
  • Plus, earn unlimited 1% cash back on all other purchases - automatically.
  • Redeem cash back in any amount, any time. Rewards never expire.
  • Use your rewards at Amazon.com checkout.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • No annual fee.
  • Discover is accepted nationwide by 99% of the places that take credit cards.
  • See Rates & Fees

See additional details for Discover it® Cash Back

More Info

  • Discover will match all the Miles you've earned at the end of your first year.*

  • 1.5 Miles per $1 Spent*

  • 0% intro for 14 months on purchases, then 11.99% - 22.99% Variable

Highlights
  • UNLIMITED BONUS: Only Discover will automatically match all the Miles you’ve earned at the end of your first year. For example, if you earn 35,000 Miles, you get 70,000 Miles.  There’s no signing up, no minimum spending or maximum rewards. Just a Miles-for-Miles match.
  • Earn unlimited 1.5x Miles for every dollar spent on all purchases - with no annual fee.
  • Turn Miles into cash in any amount, any time. Or redeem as a statement credit for travel purchases like airfare, hotels, rideshares, gas stations, restaurants and more with no blackout dates. However you redeem, Miles keep the same value. And Miles never expire.
  • No Blackout Dates. Simply pay for travel purchases like airlines, hotels, rental cars, and more with your Discover it® Miles card.
  • Discover is accepted nationwide by 99% of the places that take credit cards.
  • Freeze your account in seconds with an on/off switch either on the mobile app or website to prevent new purchases, cash advances, and balance transfers.
  • Get your free Credit Scorecard with your FICO® Credit Score, number of recent inquiries and more.
  • Get an alert if we find your Social Security number on any of thousands of Dark Web sites.* Activate for free.
  • See Rates & Fees

See additional details for Discover it® Miles

More Info

No foreign transaction fee cards with an annual fee†

To see rates & fees for The Platinum Card® from American Express please click here.

 

To see rates & fees for American Express® Gold Card please click here.

American Express® Gold Card

Apply Now

on American Express's secure site

Terms Apply

Rates & Fees

  • 35,000 Membership Rewards® Points after you spend $4,000 on eligible purchases with your new Card within the first 3 months.*

  • Earn 4X Membership Rewards® Points on Restaurants worldwide, including takeout and delivery, and 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per year in purchases, then 1X). Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.

  • Up to $100 per year for incidentals*

Highlights
  • Earn 60,000 Membership Rewards® points after you spend $4,000 on eligible purchases with your new Card within the first 6 months.
  • Earn 4X Membership Rewards® Points on Restaurants worldwide, including takeout and delivery.
  • Earn 4X Membership Rewards® points at U.S. supermarkets (on up to $25,000 per calendar year in purchases, then 1X).
  • Earn 3X Membership Rewards® points on flights booked directly with airlines or on amextravel.com.
  • $120 Dining Credit: Earn up to a total of $10 in statement credits monthly when you pay with the Gold Card at Grubhub, Seamless, The Cheesecake Factory, Ruth's Chris Steak House, Boxed, and participating Shake Shack locations. This can be an annual savings of up to $120. Enrollment required.
  • $100 Airline Fee Credit: up to $100 in statement credits per calendar year for incidental fees at one selected qualifying airline.
  • No Foreign Transaction Fees.
  • Annual Fee is $250.
  • Terms Apply.
  • See Rates & Fees

See additional details for American Express® Gold Card

More Info

  • 80,000 bonus points

  • 2X points on travel and dining at restaurants, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases worldwide.

  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 80,000 points are worth $1,000 toward travel.

Highlights
  • Earn 80,000 bonus points after you spend $4,000 on purchases in the first 3 months from account opening. That's $1,000 toward travel when you redeem through Chase Ultimate Rewards®.
  • 2X points on travel and dining at restaurants worldwide, eligible delivery services, takeout and dining out & 1 point per dollar spent on all other purchases.
  • Get 25% more value when you redeem for airfare, hotels, car rentals and cruises through Chase Ultimate Rewards. For example, 80,000 points are worth $1,000 toward travel.
  • Get unlimited deliveries with a $0 delivery fee and reduced service fees on orders over $12 for a minimum of one year on qualifying food purchases with DashPass, DoorDash's subscription service. Activate by 12/31/21.
  • Earn 5X points on Lyft rides through March 2022. That’s 3X points in addition to the 2X points you already earn on travel.

See additional details for Chase Sapphire Preferred® Card

More Info

  • Earn 50,000 American Airlines AAdvantage® bonus miles after $2,500 in purchases within the first 3 months of account opening

  • First checked bag free on domestic itineraries & preferred boarding

  • Earn 2 AAdvantage® miles for every $1 spent at gas stations, restaurants, and on eligible American Airlines purchases

Highlights
  • Earn 50,000 American Airlines AAdvantage® bonus miles after $2,500 in purchases within the first 3 months of account opening
  • Earn 2 AAdvantage® miles for every $1 spent at gas stations and restaurants
  • Earn 2 AAdvantage® miles for every $1 spent on eligible American Airlines purchases
  • Earn a $125 American Airlines Flight Discount after you spend $20,000 or more in purchases during your card membership year and renew your card
  • No Foreign Transaction Fees
  • First checked bag is free on domestic American Airlines itineraries for you and up to four companions traveling with you on the same reservation
  • Enjoy preferred boarding on American Airlines flights
  • The standard variable APR for Citi Flex Plan is 15.99% - 24.99%, based on your creditworthiness. Citi Flex Plan offers are made available at Citi's discretion.

See additional details for Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard®

More Info

Citi Premier® Card

Apply Now

on Citibank's secure site

  • Earn 3X points on restaurants, supermarkets, gas stations, air travel and hotels and 1X on all other purchases

  • Earn 60,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening

  • No Foreign Transaction Fees*

Highlights
  • Earn 60,000 bonus ThankYou® Points after you spend $4,000 in purchases within the first 3 months of account opening
  • NEW! Earn 3 Points at Restaurants and Supermarkets
  • Earn 3 Points at Gas Stations, Air Travel and Hotels
  • Earn 1 Point per $1 spent on all other purchases
  • NEW! Annual Hotel Savings Benefit
  • 60,000 Points are redeemable for $600 in gift cards when redeemed at thankyou.com
  • No expiration and no limit to the amount of points you can earn with this card
  • No Foreign Transaction Fees on purchases

See additional details for Citi Premier® Card

More Info

Where to get cash

When leaving the U.S., it’s best to have some foreign cash available, since there are always places that won’t take your credit or debit cards. And it’s best to get your cash before you leave, but sometimes that isn’t always possible.

Almost all international airports have foreign currency kiosks and ATMs. But because the exchange rates are so low — and some do charge commissions and transaction fees — you should only use them in an emergency or if you don’t mind paying to withdraw your own money.

If you decide to use an international ATM, check with your bank before you leave to see if it’s on a specific network. For example, Bank of America is on the CIRRUS network. As long as you use ATMs on that network, you won’t be charged each time you withdraw from a non-network ATM. But it does charge 3% of the dollar amount withdrawn for foreign currency at all ATMs. Also, know that some ATMs have daily withdrawal limits.

Like their U.S. counterparts, foreign banks also tend to have higher foreign currency conversion rates than credit cards and currency exchange companies such as Travelex, so look at them as an option when it comes time to convert your dollars. But do your research on these banks, making sure they can convert your dollars and know what fees may be involved.

The bottom line

It pays to do your homework on exchange rates and fees before leaving the U.S. A quick call to credit card and bank customer service departments could save you a lot of money on fees. Here’s a checklist on what you need to do:

  • Bookmark your credit card’s currency exchange website so that you can see rates on the fly in real time.
  • Make sure you know what network your bank’s debit card is in before you leave so that you can avoid out-of-network fees for withdrawals.
  • Either get your foreign currency before you depart or go to a local bank or in-network ATM to grab it.
  • Use foreign currency exchange kiosks and ATMs, which come with lower conversion rates and fees, only as a last resort.

After any introductory period, as specified by individual card offers above.

**The information related to this offer has been independently collected by CompareCards and has not been reviewed or provided by the issuer of this card prior to publication. This offer and/or promotion may have since changed, expired, or are no longer available.


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