Bank of America charges foreign transaction fees on most of its credit cards
Most Bank of America credit cards charge a 3% foreign transaction fee on purchases made outside the United States. This fee applies to any transaction processed in a foreign currency or by a merchant located outside the U.S., even if you're charged in dollars. The fee is added to your statement after the purchase posts.
A few Bank of America cards do not charge this fee — the Preferred Rewards card and certain premium travel cards waive it entirely. If you travel frequently or make regular international purchases, checking which specific card you hold matters, because the fee difference adds up quickly on larger purchases or multiple trips.
Key Takeaways
- Bank of America's standard credit cards charge 3% on all foreign transactions, applied after the purchase posts to your account.
- The Preferred Rewards card and some premium travel cards waive the foreign transaction fee entirely.
- The fee is calculated on the converted dollar amount, so currency exchange rates affect the total cost.
- You can find your card's specific fee policy in your cardholder agreement or by calling the number on the back of your card.
Which Bank of America cards charge the fee and which don't
Bank of America's Preferred Rewards card has no foreign transaction fee. This card is available only to customers enrolled in the Preferred Rewards program, which requires maintaining a minimum balance or having may have access to direct deposits. If you meet those requirements, this card is the best option for international travel.
Bank of America's premium travel cards, including the Premium Rewards card (if available in your region), may also waive the foreign transaction fee. However, these cards typically carry annual fees ranging from $95 to $450, so the waived fee only saves money if you travel enough to offset the cost.
All other Bank of America credit cards — including the Cash Rewards card, the Travel Rewards card, and the basic Visa card — charge the full 3% foreign transaction fee. If you hold one of these cards and travel internationally, you will pay the fee on every foreign purchase.
How the foreign transaction fee is calculated
The 3% fee is calculated on the dollar amount after Bank of America converts the foreign currency to U.S. dollars. This means the fee depends partly on the exchange rate used on the day the transaction is processed, not the day you made the purchase. Exchange rates fluctuate daily, so the exact dollar amount of your fee may differ slightly from what you expected when you swiped the card.
For example, if you spend 100 euros and the conversion rate results in $110, the 3% fee is $3.30, not 3% of the original euro amount. The fee appears as a separate line item on your statement, labeled as a foreign transaction fee or international transaction fee.
When the fee applies and when it doesn't
The foreign transaction fee applies whenever a merchant is located outside the United States or the transaction is processed in a foreign currency. This includes online purchases from foreign websites, even if you're sitting in the U.S. when you make the purchase. A purchase from a U.S. company's website does not trigger the fee, even if the company ships internationally.
ATM withdrawals at foreign banks also trigger the fee, plus an additional ATM fee that varies by location. Some Bank of America ATMs abroad are fee-free if you're a Preferred Rewards member, but most foreign ATMs charge both the 3% foreign transaction fee and a separate ATM surcharge.
Currency conversion done by the merchant — such as when a foreign store offers to charge you in dollars instead of the local currency — does not change whether the fee applies. You will still pay the 3% fee, and the merchant's conversion rate is often worse than your bank's rate, so it's usually better to let your bank handle the conversion.
How to find your card's specific fee policy
Your cardholder agreement lists the foreign transaction fee for your specific card. You can find this document by logging into your Bank of America online account, going to the card details section, and looking for "terms and conditions" or "cardholder agreement." The fee is usually listed under "fees" or "international transactions."
If you don't have access to your online account, call the customer service number on the back of your credit card. A representative can confirm whether your card charges a foreign transaction fee and, if it does, explain the exact percentage and how it's calculated.
Strategies to avoid or reduce foreign transaction fees
If you hold a Bank of America card that charges the 3% fee, you can reduce the total cost by using cash for smaller purchases and reserving the card for larger transactions where the fee is worth paying for the fraud protection and purchase record. Many foreign ATMs charge less in total fees than the 3% credit card fee, though this varies by location and your account type.
Another option is to open a second credit card from a different bank that has no foreign transaction fee. Many online banks and travel-focused credit card issuers waive this fee entirely. You can keep your Bank of America card for domestic use and use the no-fee card when traveling.
If you travel frequently enough to justify an annual fee, Bank of America's premium travel cards may save you money overall. Calculate your annual foreign transaction fees over the past year — if they exceed the card's annual fee, the premium card pays for itself.
What happens if you dispute a foreign transaction
If you dispute a foreign transaction, the foreign transaction fee is not automatically reversed. You must specifically request that the fee be removed as part of your dispute claim. Bank of America will investigate the underlying transaction, but the fee stands unless you argue that it should not have been charged — for example, if the merchant was actually located in the U.S. and should not have triggered the fee.
If the original transaction is reversed because it was fraudulent or unauthorized, the foreign transaction fee is typically reversed as well. However, if the transaction is legitimate but you simply want to dispute the amount or the merchant's service, the fee remains your responsibility.
Frequently Asked Questions
Can I avoid the foreign transaction fee by using a debit card instead?
Bank of America debit cards also charge foreign transaction fees on purchases and ATM withdrawals outside the U.S., typically 3% as well. Some checking accounts waive the fee for ATM withdrawals if you maintain a minimum balance, but the fee still applies to debit card purchases. Check your account terms or call customer service to confirm your debit card's policy.
Does the foreign transaction fee apply if I'm a U.S. citizen traveling abroad?
Yes. The fee applies to any transaction processed outside the U.S. or in a foreign currency, regardless of your citizenship or where you live. It does not matter whether you're a U.S. resident traveling abroad or a non-U.S. resident using a Bank of America card — the fee is the same.
What if a foreign merchant charges me in U.S. dollars instead of the local currency?
You will still pay the 3% foreign transaction fee. The fee is based on where the merchant is located or how the transaction is processed, not on which currency appears on the receipt. Additionally, merchants who offer dollar conversion typically use a worse exchange rate than your bank, so you pay more overall.
How long after my purchase does the foreign transaction fee appear on my statement?
The fee usually appears within one to three business days after the original transaction posts. Some transactions take longer to process, so the fee may not show up immediately. Check your statement a few days after your purchase to see the final amount including the fee.
Can I request that Bank of America waive the foreign transaction fee as a courtesy?
Bank of America does not routinely waive foreign transaction fees as a courtesy, even for long-time customers or high account balances. Your best option is to switch to a card that does not charge the fee, such as the Preferred Rewards card if you meet the enrollment requirements, or to open a card with a different bank.