Bank of America charges foreign transaction fees on most debit and credit cards

Bank of America adds a 3% foreign transaction fee to purchases made outside the United States on most of their standard debit and credit cards. This fee is added to your bill at the time of the transaction, calculated on the U.S. dollar amount after the currency conversion. The fee applies whether you swipe a card, use an ATM, or make an online purchase from a foreign merchant.

A few Bank of America cards do not charge this fee. The Bank of America Premium Rewards American Express card and the Bank of America Unlimited Cash Rewards American Express card waive foreign transaction fees for cardholders. If you travel internationally often, these cards may offset their annual fees through savings on foreign purchases alone.

The 3% fee is separate from the currency conversion rate itself. When you use your card abroad, Bank of America converts the local currency to U.S. dollars using their own exchange rate, which typically includes a markup above the mid-market rate. The foreign transaction fee is then applied on top of that converted amount.

Key Takeaways

  • Bank of America's standard debit and credit cards charge 3% on all transactions made outside the United States.
  • The fee is calculated after currency conversion and appears as a separate line item on your statement.
  • Premium American Express cards issued by Bank of America waive this fee entirely.
  • ATM withdrawals abroad also incur the 3% foreign transaction fee, plus a separate out-of-network ATM fee if the machine is not part of Bank of America's network.
  • Using a debit card abroad costs the same 3% as using a credit card with Bank of America.

How the fee appears on your statement

When you make a purchase abroad, the merchant's local currency amount is converted to U.S. dollars. Bank of America then calculates 3% of that converted amount and adds it as a separate charge. On your statement, you will see the original transaction amount in the foreign currency, the converted U.S. dollar amount, and then a line labeled "Foreign Transaction Fee" showing the 3% charge.

For example, if you spend 100 euros at a restaurant and Bank of America's conversion rate results in $108 USD, the foreign transaction fee would be $3.24 (3% of $108). Your total charge would be $111.24. The fee posts to your account at the same time as the purchase, not days later.

ATM withdrawals and cash advances abroad

Withdrawing cash from an ATM outside the United States triggers both the 3% foreign transaction fee and a separate out-of-network ATM fee. Bank of America charges $2.50 per out-of-network ATM withdrawal, plus the 3% foreign transaction fee on the amount withdrawn. If you withdraw $200, you pay $6 in foreign transaction fees (3% of $200) plus the $2.50 ATM fee, for a total of $8.50 in charges.

Bank of America has ATM partnerships in some countries through the Global ATM Alliance, which waives the out-of-network fee but does not waive the 3% foreign transaction fee. Before traveling, you can search Bank of America's ATM locator to see if partner machines are available in your destination.

Comparing Bank of America to other banks

Most major U.S. banks charge between 2% and 3% on foreign transactions. Chase charges 3% on most cards, as does Wells Fargo. Some online banks and credit unions charge lower rates or no foreign transaction fees at all, though they may have other trade-offs like limited ATM networks or higher annual fees.

If you spend significant time abroad or make frequent international purchases, comparing foreign transaction fees across banks may save you money over time. A card with no foreign transaction fee but a $95 annual fee could still be cheaper than Bank of America's 3% fee if you spend more than $3,200 per year internationally.

Cards that waive the foreign transaction fee

Bank of America's two premium American Express cards do not charge the 3% foreign transaction fee. The Premium Rewards American Express card has an annual fee of $95 and earns 2 points per dollar on travel and dining purchases. The Unlimited Cash Rewards American Express card has an annual fee of $95 and earns 1.5% cash back on all purchases.

Both cards are issued by Bank of America but run on the American Express network, which has different merchant acceptance than Visa or Mastercard. In some countries, American Express is less widely accepted than Visa or Mastercard, so you may still need a backup card. The foreign transaction fee waiver applies only to these two specific cards; other Bank of America American Express cards still charge the 3% fee.

What you can do to reduce foreign transaction costs

If you use a standard Bank of America card abroad, the 3% fee is unavoidable. However, you can reduce total costs by minimizing the number of transactions and avoiding ATM withdrawals when possible. Making one large purchase instead of several small ones reduces the number of times the fee is applied. Paying with your card instead of withdrawing cash eliminates the additional $2.50 ATM fee.

Some travelers open a second account with a bank that does not charge foreign transaction fees specifically for international travel, while keeping their Bank of America account for domestic use. This requires planning ahead but can significantly reduce fees over a long trip or frequent travel schedule.

Frequently Asked Questions

Does the 3% foreign transaction fee apply to online purchases from foreign websites?

Yes. If a merchant is located outside the United States, Bank of America charges the 3% foreign transaction fee regardless of whether you are physically traveling. Buying from a UK retailer's website while sitting at home in the U.S. still incurs the fee.

Can I dispute a foreign transaction fee if I think it was charged incorrectly?

You can contact Bank of America to review the transaction, but the fee is not an error if your card is one that charges it. Bank of America will not remove the fee unless you can show the transaction was fraudulent or that you used a card that does not charge foreign fees.

Do Bank of America debit cards charge the same foreign transaction fee as credit cards?

Yes. Bank of America debit cards charge 3% on foreign transactions just like their credit cards. The fee applies to both purchase transactions and ATM withdrawals.

What happens if I use my Bank of America card at a currency exchange booth abroad?

Currency exchange booths are merchants, so using your card there triggers the 3% foreign transaction fee. You would be paying the booth's exchange rate plus Bank of America's 3% fee, making it more expensive than using an ATM or paying merchants directly with your card.

Is there a daily limit on how much the foreign transaction fee can cost?

No. Bank of America charges 3% on every foreign transaction with no daily cap. If you spend $5,000 abroad in a single day, you pay $150 in foreign transaction fees across all those transactions.