Yes, Bank of America charges foreign transaction fees on most accounts

Bank of America charges 3% on foreign transactions for most checking and savings accounts. This fee applies when you use your debit card, credit card, or ATM abroad, or when you receive a wire transfer from outside the United States. The 3% is added to the transaction amount after it is converted to US dollars.

Some Bank of America accounts and cards do not charge this fee. The Bank of America Premium Rewards American Express card waives foreign transaction fees entirely. A few specialized accounts marketed to international customers may also avoid the charge, but these are not the standard consumer products.

The 3% fee is separate from any currency conversion markup that your bank applies. When you spend money abroad, the merchant's bank converts the amount to dollars, and Bank of America then adds its own 3% on top of that conversion. You pay both costs.

Key Takeaways

  • Bank of America charges 3% on foreign transactions for standard checking and savings accounts, applied after currency conversion.
  • The fee applies to debit card purchases, credit card purchases, ATM withdrawals, and incoming wire transfers from outside the US.
  • The Bank of America Premium Rewards American Express card does not charge foreign transaction fees.
  • You can avoid the fee by using a different bank's card or account designed for international use, or by withdrawing cash in your home country before travel.

What counts as a foreign transaction

A foreign transaction is any purchase, withdrawal, or transfer that involves currency conversion or happens outside the United States. If you swipe your Bank of America debit card at a store in London, that is a foreign transaction. If you withdraw cash from an ATM in Mexico, that is a foreign transaction. If someone sends you money from a bank account in Canada, that is a foreign transaction.

Transactions in US dollars at US-based merchants do not trigger the fee, even if you are physically outside the country. If you book a hotel room on a US website using your Bank of America card while traveling, and the charge is in dollars, you will not pay the 3% fee. The fee applies only when currency conversion happens.

Some online purchases from foreign merchants may also trigger the fee, depending on whether the merchant's bank is located outside the US and whether the transaction requires conversion. The safest assumption is that any purchase from a non-US merchant will incur the fee.

Where the fee appears on your statement

Bank of America lists the foreign transaction fee as a separate line item on your monthly statement. It will show the original amount in the foreign currency, the converted amount in US dollars, and then the 3% fee calculated on the converted amount. You can see the exact breakdown if you download your statement as a PDF or view the transaction details online.

The fee is charged in US dollars and deducted from your account balance. If you made ten purchases of 50 euros each while in Europe, you would see ten separate transactions, each with its own 3% fee. The fees add up quickly on a trip with many small purchases.

ATM withdrawals and wire transfers

The 3% foreign transaction fee applies to ATM withdrawals outside the United States. If you withdraw 200 euros from an ATM in Germany using your Bank of America debit card, you pay 3% on the converted dollar amount. Bank of America may also charge an additional ATM fee if the machine is not part of their network, which is a separate charge on top of the foreign transaction fee.

Incoming wire transfers from foreign banks also incur the 3% fee. If a family member in Japan sends you money via wire transfer, Bank of America charges 3% when they convert the yen to dollars and deposit it into your account. Outgoing wire transfers to foreign accounts do not trigger this particular fee, but your bank may charge a separate wire transfer fee.

How to avoid the 3% fee

The most direct way to avoid the fee is to use the Bank of America Premium Rewards American Express card for foreign purchases. This card waives the 3% foreign transaction fee on all purchases made outside the United States. You still need to pay the card balance, but you will not see the extra 3% charge.

If you do not want to switch cards, you can withdraw cash in US dollars before you travel and use that cash abroad instead. This avoids the foreign transaction fee entirely, though you may pay a currency conversion fee when you exchange dollars for the local currency at a bank or exchange service. Compare the costs: the 3% Bank of America fee on your expected spending versus the exchange rate markup at a currency exchange.

Another option is to open an account with a bank that does not charge foreign transaction fees. Some online banks and credit unions offer checking accounts with no foreign transaction fees. If you travel frequently or live abroad part of the year, switching banks may save you more than the 3% fee would cost.

Some credit cards from other issuers also waive foreign transaction fees. If you have a travel rewards card from Chase, American Express, or another bank, check whether it includes this benefit. You can use that card for foreign purchases and keep your Bank of America account for domestic use.

Timing and when the fee is charged

The foreign transaction fee is charged when the transaction posts to your account, not when you make the purchase. If you swipe your card on Monday but the merchant does not submit the charge until Wednesday, the fee is calculated and charged on Wednesday based on the exchange rate on that day. This means the exact fee amount may differ slightly from what you expected at the time of purchase.

For ATM withdrawals, the fee is typically charged the same day the withdrawal is processed. For wire transfers, the fee is deducted when the funds arrive in your account. You cannot predict the exact fee in advance because it depends on the exchange rate at the time the transaction settles.

Frequently Asked Questions

Can I dispute a foreign transaction fee?

Bank of America will not remove the fee if you made the transaction knowingly. The fee is part of their standard terms for accounts without a waiver. If the transaction itself was fraudulent or unauthorized, you can dispute the entire charge, and the fee would be removed along with it. Contact Bank of America's fraud department if you did not make the purchase.

Do Bank of America savings accounts have the same foreign transaction fee?

Yes. Both checking and savings accounts charge 3% on foreign transactions. The fee applies to any account type unless you hold a specific product like the Premium Rewards American Express card that waives it.

What if I use my Bank of America card at a US ATM while traveling abroad?

If the ATM is owned by Bank of America or is part of their network, you will not pay the foreign transaction fee. You may pay an out-of-network ATM fee if the machine is not affiliated with Bank of America, but that is a separate charge. Check Bank of America's ATM locator before you travel to find machines you can use without extra fees.

Does the 3% fee apply to online purchases from US companies while I am abroad?

Only if the transaction requires currency conversion. If you buy something from an American company and the charge is in US dollars, no foreign transaction fee applies. If the merchant converts the price to the local currency before charging you, the fee may apply. Check the currency shown at checkout before you complete the purchase.

Are there Bank of America accounts designed for people who travel internationally?

Bank of America does not offer a standard checking account that waives foreign transaction fees. The Premium Rewards American Express card is their main product for frequent international users. Some customers open accounts with other banks specifically for travel and keep their Bank of America account for domestic use.