Bank of America charges foreign transaction fees on most accounts, but the amount and when they explore depend on your account type and card

Bank of America's standard foreign transaction fee is 3% of the transaction amount when you use a debit card or credit card outside the United States. This fee applies to purchases, cash withdrawals, and balance transfers made in foreign currency or processed through a non-U.S. bank. The fee is added to your statement after the transaction posts.

Some Bank of America accounts and cards do not charge this fee. Certain premium credit cards, like the Bank of America Premium Rewards card, waive foreign transaction fees entirely. Some business accounts and wealth management accounts also offer this benefit. Your specific account terms determine whether the fee applies to you.

Key Takeaways

  • Bank of America charges 3% on most foreign transactions made with debit or credit cards outside the United States.
  • The 3% fee applies whether you spend in foreign currency or make a purchase processed through a non-U.S. bank.
  • Premium credit cards and certain business or wealth accounts waive the foreign transaction fee entirely.
  • ATM withdrawals abroad typically trigger both the foreign transaction fee and an additional out-of-network ATM fee from the foreign bank.

How the 3% foreign transaction fee works

When you swipe a Bank of America debit or credit card outside the United States, the transaction is converted to U.S. dollars and processed through the Visa or Mastercard network. Bank of America adds 3% to the converted amount as a foreign transaction fee. This happens automatically — you do not see it at the point of sale, but it appears on your statement when the transaction settles, usually within one to three business days.

The fee applies to any transaction where the merchant's bank is outside the U.S., even if you are physically in the United States and the merchant is a foreign company. For example, ordering from a Canadian retailer online and paying in Canadian dollars will trigger the fee. The fee also applies if you convert currency at an ATM abroad or withdraw cash in a foreign currency.

Which Bank of America cards and accounts waive the fee

Bank of America Premium Rewards card holders pay no foreign transaction fee. This card is marketed to frequent travelers and charges an annual fee. Other premium Bank of America credit cards may also waive the fee — check your card's terms or contact Bank of America directly to confirm.

Bank of America Preferred Rewards members with higher tier status sometimes receive waived foreign transaction fees as a benefit, though this varies by tier level and account type. Business accounts, particularly those with higher balances or premium business banking packages, may also waive the fee. Wealth management clients often have this benefit included. Your account documents or online banking portal will show whether foreign transaction fees explore to your specific account.

Foreign transaction fees on ATM withdrawals

Withdrawing cash from an ATM abroad costs more than a purchase. You pay Bank of America's 3% foreign transaction fee on the amount withdrawn, plus an additional out-of-network ATM fee charged by the foreign bank. That foreign bank fee typically ranges from $2 to $5 per withdrawal, though it varies by country and institution.

Bank of America does not reimburse the foreign ATM fee. If you need cash abroad, using a credit card for purchases instead of withdrawing cash can save money, since you only pay the 3% foreign transaction fee rather than 3% plus the ATM operator's fee. Some travelers also use their Bank of America debit card at ATMs inside Bank of America partner banks abroad to avoid the foreign ATM fee, though the 3% foreign transaction fee still applies.

Currency conversion and the exchange rate

When you make a purchase in foreign currency, Bank of America converts it to U.S. dollars using an exchange rate set by Visa or Mastercard, not by Bank of America. This rate is typically close to the mid-market rate you see published online, but it may be slightly higher or lower depending on market conditions at the time of processing.

The 3% foreign transaction fee is calculated on top of the converted U.S. dollar amount. For example, if you spend 100 euros and the conversion rate is 1.10 USD per euro, the converted amount is $110. Bank of America then adds 3% ($3.30) to that, making your total charge $113.30. The conversion rate and the fee are separate charges — you cannot avoid the fee by using a particular payment method or timing your transaction differently.

Comparing Bank of America to other banks

Many online banks and credit unions do not charge foreign transaction fees at all. Some traditional banks charge 1% to 2% instead of 3%. A few banks waive the fee for all customers, not just premium account holders. If you travel frequently or make regular international purchases, comparing foreign transaction fees across banks can save you money over time.

Bank of America's 3% fee is on the higher end of what major U.S. banks charge. However, if you have a premium Bank of America card that waives the fee, or if you rarely travel, the fee may not be a deciding factor in choosing your bank. Your decision may depend on other features like branch availability, customer service, or account benefits.

Steps to take before traveling

Before you travel, contact Bank of America to confirm your account's foreign transaction fee policy. You can call the number on the back of your card, log into your online banking account, or visit a branch. Ask specifically whether your card or account waives the fee, and ask about any other travel-related fees you should know about, such as ATM fees or currency conversion markups.

Notify Bank of America of your travel dates and destinations. This helps prevent your card from being blocked for fraud when you use it abroad. You can do this through your online banking portal, by calling the number on your card, or by visiting a branch. Some travelers also ask about alternative payment methods, such as a travel-specific credit card or a prepaid card that does not charge foreign transaction fees.

Frequently Asked Questions

Does Bank of America charge foreign transaction fees on all cards?

Most Bank of America debit and credit cards charge 3% on foreign transactions. Premium credit cards like the Premium Rewards card waive the fee. Check your card's terms or contact Bank of America to confirm whether your specific card charges the fee.

Can I avoid the foreign transaction fee by using a credit card instead of a debit card?

No. Bank of America charges the same 3% foreign transaction fee on both credit and debit cards. The fee applies to any transaction processed outside the United States, regardless of which type of card you use.

What if my transaction is in U.S. dollars but processed abroad?

If a foreign merchant charges you in U.S. dollars, Bank of America still applies the 3% foreign transaction fee because the transaction is processed through a non-U.S. bank. The currency of the charge does not determine whether the fee applies — the location of the processing bank does.

Do I pay the foreign transaction fee if I use my Bank of America card at a U.S. company's foreign location?

Yes. If you use your card at a U.S. chain restaurant or store in another country, and the transaction is processed through that company's foreign bank, you pay the 3% fee. The company's home country does not matter — the processing location does.

Are there Bank of America accounts that never charge foreign transaction fees?

Premium credit cards and certain wealth management or business accounts waive foreign transaction fees for all transactions. If you travel frequently, ask Bank of America whether upgrading your account or switching to a premium card would eliminate the fee.