Skip to content
CardSwipe
Join the beta

Guide

Do foreign transaction fees cancel credit card rewards?

Often, yes. Many cards charge about 3% on purchases processed outside the US, which is more than most cards earn. Use a card with no foreign transaction fee abroad.

How the fee works

The fee is a percentage of each purchase processed by a foreign bank or in a foreign currency.

It can apply to online purchases from foreign merchants, even when you never leave home.

Rewards are earned on the purchase. The fee is charged separately and is not offset.

Pay in local currency

Terminals abroad sometimes offer to charge you in dollars. This is dynamic currency conversion.

The merchant's conversion rate is usually worse than your card network's.

Always choose the local currency. Your card converts it at a better rate.

Which cards to take

Most travel cards and many newer cards have no foreign transaction fee.

Take at least two no-fee cards, ideally on different networks, in case one is declined.

Visa and Mastercard are accepted more widely abroad than American Express or Discover.

Common follow-ups

Do foreign transaction fees apply to online purchases?
They can, if the merchant processes the payment outside the US, even if prices are shown in dollars.
Should I pay in dollars or local currency abroad?
Local currency. Paying in dollars uses the merchant's conversion rate, which is usually worse.
Do debit cards charge foreign transaction fees?
Many do. Check your bank's fee schedule before you travel.

Figures come from issuer terms published at the time of writing and are estimates, not guarantees. Your own card agreement governs what you earn. Updated October 2026.

Read next

Know the card before you reach the register

CardSwipe is on the App Store Thursday, November 5. Until then the beta is open on TestFlight: install it, add the cards you carry, and check the answer at the next counter you stand at.

Join the beta

No bank login. No card numbers. Ever.

iOS 18 and watchOS 11, US cards. On the App Store Thursday, November 5, 1:00 AM Pacific. Built by Shaurya Dattani and Aarav Patel.

CardSwipe support will never ask for account numbers, passwords, card numbers, or any other credential, for any reason. Reward rates are estimates based on published issuer terms, not guarantees. CardSwipe is not affiliated with, endorsed by, or sponsored by any card issuer named on this site, and carries no paid placement: rankings are computed from published issuer terms alone.