Mastercard Foreign Transaction Fees (2024)

FAQs

Is there foreign transaction fee on Mastercard? ›

The Mastercard foreign transaction fee is usually 0% or 3%, depending on which card you have and the bank or credit union that issued it.

Your credit card provider will use a conversion rate offered by Visa, Mastercard or American Express. This will usually be better than the rate you would get from the retailer or ATM. Expect a small currency conversion fee and, if you're withdrawing cash, a cash transaction fee.

The best way to avoid foreign transaction fees is to acquire a no-foreign-transaction-fees credit card, if you qualify for one. Next in line are checking accounts or debit cards with no foreign transaction fee. It is also possible to avoid the fee by paying in the local currency for purchases.

Fees for using your card overseas

Visa and Mastercard®: 3.0%

Visa and Mastercard are the two largest card networks in the world, accepted in more than 200 countries and territories. Mastercard credit cards are more widely accepted internationally, while Visa cards tend to offer more benefits. But for most consumers, there is no practical difference between Visa and Mastercard.

While you'll always need some cash, using a credit card for your spending needs can significantly simplify overseas travel. You won't really have to deal with converting currency and, armed with the right credit card, you won't pay unnecessary foreign transaction fees.

Credit cards also tend to be safer to use abroad. If your debit card is hacked or stolen while away, then the money in your account is at risk. This is not the case with a credit card as only the money up to your credit limit is at risk. There is also something called Section 75 of the Consumer Credit Act.

You can use a travel credit card to make a fee-free purchase and pay the balance back later. If you don't pay off the balance in full each month, you might be charged interest. Some travel credit cards might also let you withdraw cash from an ATM while you're abroad without paying a fee, although these are rarer.

How do I know if my credit card has a foreign transaction fee? ›

Not all credit cards charge a foreign transaction fee, but many do. To find out if your card does, check the “fees” section of the terms and conditions for your card.

While 3% might not seem like much, the charges can add up. For example, if you jet off to Europe for a month and charge $5,000 on a card that carries a 3% foreign transaction fee, you'll have to pay an extra $150 when the bill comes due.

International merchants with credit card terminals will almost always accept Visa or Mastercard, issuers with strong international payment networks. Unfortunately, American Express and Discover can prove finicky abroad, as these two issuers have less robust payment networks outside the United States.

Not all credit cards charge a foreign transaction fee, but many do. To find out if your card does, check the “fees” section of the terms and conditions for your card.

Card issuers can opt to exclude this fee from card terms but if not, the network's fee will be tacked on to any fee charged by the issuer. Foreign transaction fees typically show up as separate charges on your billing statement.