How Bank of America Handles Currency Conversion for International Transactions

Bank of America converts currency on international transactions, but the rate and fees depend on the type of transaction and your account

Yes, Bank of America converts currency when you spend money abroad, receive a wire transfer in a foreign currency, or use your card outside the United States. The bank does not let you hold a foreign currency in a regular checking or savings account — the money converts to US dollars automatically. How much you pay for that conversion varies. Bank of America charges a foreign transaction fee on most debit and credit card purchases made outside the US, and it also marks up the exchange rate it offers you, meaning you get fewer dollars per unit of foreign currency than the mid-market rate.

The conversion happens at the point of sale when you swipe your card, or when the merchant's bank settles the transaction — usually within one to three business days. You will see the converted amount and the fee on your statement. If you are receiving money from abroad, the sender's bank converts it first, then Bank of America converts it again when it arrives, so you may see two separate conversion rates applied.

Key Takeaways

Bank of America charges a 3% foreign transaction fee on most debit and credit card purchases made outside the United States.
The bank also applies an exchange rate markup, so the rate you receive is lower than the mid-market rate published by financial data services.
Currency conversion happens automatically — you cannot keep money in a foreign currency in a Bank of America account.
Incoming wire transfers in foreign currency are converted twice: once by the sending bank and again by Bank of America when the money arrives.
Some Bank of America cards and accounts have different foreign transaction fees or no fee at all, so the cost depends on which product you use.

Foreign transaction fees on debit and credit cards

Bank of America charges 3% on most debit card purchases made outside the United States. This fee applies whether you use an ATM, make a purchase at a store, or withdraw cash. The 3% is calculated on the converted US dollar amount and appears as a separate line item on your statement.

Credit cards issued by Bank of America also carry a 3% foreign transaction fee on purchases made outside the US, with the same exceptions. Some Bank of America credit cards marketed for travel may have no foreign transaction fee — the bank publishes this detail in the card's terms and conditions, which you can find on the Bank of America website or by calling the number on the back of your card.

The fee is charged in addition to the exchange rate markup. If you spend 100 euros and the converted amount is $110, Bank of America adds 3% of $110 (which is $3.30) to your bill. You pay $113.30 total.

How Bank of America sets the exchange rate

Bank of America does not use the mid-market exchange rate — the rate you see on financial websites or currency converters. Instead, the bank applies its own rate, which is typically 1% to 2% lower than the mid-market rate. This markup is how the bank profits from currency conversion, separate from the foreign transaction fee.

The exact rate Bank of America uses depends on when the transaction settles. If you swipe your card in a store, the rate may be locked at the moment of the transaction, or it may be locked when the merchant's bank settles the charge — usually one to three days later. You will see the rate applied on your statement, but you cannot negotiate it or choose a different one.

For wire transfers and other international money movements, Bank of America publishes its exchange rates on its website, though these rates change throughout the day. The rate you receive on a wire transfer may differ from the rate on a card transaction because the timing and the type of transaction are different.

Incoming wire transfers in foreign currency

When someone sends you money from abroad in a foreign currency, two conversions happen. The sending bank converts the money to dollars (or another currency) first, then Bank of America converts it again when it arrives in your account. You see only the final amount in US dollars on your statement.

The sender's bank charges its own fee and applies its own exchange rate, so you have no control over the first conversion. Bank of America then applies its rate and may charge a wire transfer fee (usually $15 to $20 for incoming international wires, though this varies). The result is that you receive significantly less than the original amount in the foreign currency, because two institutions have each taken a cut.

If you need to receive money from abroad regularly, ask the sender which bank they are using and whether they can send the money in US dollars instead. This eliminates one conversion and one set of fees. Some international money transfer services like Wise or OFX offer better exchange rates than banks for incoming transfers, though the sender would need to use those services instead of a traditional bank wire.

ATM withdrawals and cash advances abroad

When you withdraw cash from an ATM outside the United States using a Bank of America debit card, the bank converts the local currency to US dollars and charges the 3% foreign transaction fee. You also pay the ATM operator's fee, which is set by the ATM owner and is separate from Bank of America's charge. Some ATMs charge $3 to $5 per withdrawal; others charge more.

Bank of America does not own most ATMs outside the US, so you will almost always pay both the bank's 3% fee and the ATM operator's fee. The total cost of withdrawing $200 in cash abroad can easily be $15 to $20 or more, depending on the ATM operator's fee and the exchange rate markup.

Credit card cash advances abroad work the same way: Bank of America converts the currency, charges the 3% foreign transaction fee, and also charges a cash advance fee (usually 3% to 5% of the amount). Cash advances are more expensive than debit card withdrawals.

Accounts and cards with no foreign transaction fee

Bank of America offers some products with no foreign transaction fee. These are typically premium credit cards or accounts that require a higher minimum balance or annual fee. The bank's website lists which cards have no foreign transaction fee in the card's terms and conditions.

Even with no foreign transaction fee, you still pay the exchange rate markup — the 1% to 2% difference between Bank of America's rate and the mid-market rate. The "no fee" means you avoid the additional 3% charge, but the bank still profits from the conversion itself.

If you travel frequently or conduct regular business abroad, comparing the annual cost of a premium card (which may have an annual fee of $95 to $450) against the foreign transaction fees you would pay on a standard card can help you decide whether the premium product saves you money. This depends on how much you spend abroad each year.

Frequently Asked Questions

What is the difference between the foreign transaction fee and the exchange rate markup?

The foreign transaction fee is a flat 3% charge that Bank of America adds to the converted amount. The exchange rate markup is the difference between the rate the bank offers you and the mid-market rate — typically 1% to 2%. Both are costs you pay, and they are calculated separately on your statement.

Can I lock in an exchange rate before I travel?

Bank of America does not offer rate-locking for debit or credit card transactions. The rate is set when the transaction settles, which is usually one to three days after you make the purchase. For large wire transfers, you can contact the bank to ask about forward contracts, but these are typically available only for business customers moving significant amounts of money.

Why do I see two different amounts on my statement for one transaction?

You are seeing the original amount in the foreign currency and the converted amount in US dollars. The difference includes the exchange rate markup and the 3% foreign transaction fee. Both are applied by Bank of America when the transaction settles.

Does Bank of America offer a way to hold foreign currency?

No. Bank of America does not offer foreign currency accounts for individual customers. All money in your account is held in US dollars. If you receive a transfer in a foreign currency, it converts to dollars automatically.

Is there a cheaper way to exchange currency with Bank of America?

Bank of America's exchange rates and fees are the same across all transaction types — card purchases, ATM withdrawals, and wire transfers. If you need to exchange a large amount of currency before traveling, you can visit a Bank of America branch and ask about ordering foreign currency cash, though the rate and fees are typically the same as card transactions.

This guide is for general information only and is not medical, financial, legal, or other professional advice. For decisions specific to your situation, consult a qualified professional. See our Editorial Policy.