Most Bank of America credit cards charge 3% for purchases made outside the United States

Bank of America charges a foreign transaction fee of 3% on most of its standard credit cards when you use them to buy something in another country or in a foreign currency. This fee is added to your bill on top of the purchase price. For example, if you spend $100 on a card with a 3% foreign transaction fee, you will be charged an additional $3.

Not all Bank of America cards charge this fee. The bank offers a small number of cards with no foreign transaction fees at all — primarily travel-focused cards and some premium rewards cards. The fee applies whether you're traveling abroad or making an online purchase from a foreign merchant while you're still in the United States.

The 3% fee is separate from any currency conversion markup your card issuer applies. When you use your card in a foreign currency, the card network (Visa, Mastercard, or American Express) converts the amount to dollars, and the issuer may add its own conversion rate on top of that process.

Key Takeaways

  • Bank of America's standard credit cards charge 3% on all foreign transactions, whether you're traveling or shopping online from abroad.
  • Some Bank of America cards, including certain travel rewards cards, have no foreign transaction fees at all.
  • The 3% fee is added to your statement and is separate from currency conversion rates applied by the card network.
  • You can check your specific card's terms by logging into your Bank of America account or calling the number on the back of your card.
  • Debit cards issued by Bank of America may have different foreign transaction fees than credit cards, so confirm the terms for the card you plan to use.

Which Bank of America cards have no foreign transaction fees

Bank of America's travel rewards cards typically waive the 3% foreign transaction fee. The Bank of America Premium Rewards card and the Bank of America Travel Rewards card are the two main options that do not charge this fee. These cards are designed for people who travel frequently or make regular international purchases.

Some of Bank of America's premium or higher-tier cards may also waive foreign transaction fees, but the specific cards change over time. The best way to know whether your card has this benefit is to check the card's terms and conditions, which you can find on Bank of America's website or by logging into your account online.

If you already have a Bank of America credit card and want to know whether it charges foreign transaction fees, call the customer service number on the back of your card. A representative can tell you the exact fee for your specific card in under five minutes.

How the 3% fee appears on your statement

When you make a purchase abroad with a Bank of America card that charges foreign transaction fees, the 3% fee shows up as a separate line item on your monthly statement. It will be labeled something like "Foreign Transaction Fee" or "International Transaction Fee." The fee is calculated on the dollar amount of your purchase after currency conversion.

If you make multiple purchases in foreign currencies during a billing cycle, each one incurs its own 3% fee. The fees add up across all your transactions, so a week of travel with several purchases can result in a noticeable charge. You can see the running total of these fees by checking your account online or in the Bank of America mobile app.

Debit cards and foreign transaction fees

Bank of America debit cards have different foreign transaction fee structures than credit cards. Most Bank of America debit cards charge a fee when you withdraw cash from an ATM outside the United States, but the fee may be different from the 3% credit card fee. Some debit cards charge a flat dollar amount per withdrawal instead of a percentage.

When you use a Bank of America debit card to make a purchase (not a cash withdrawal) at a merchant abroad, you may not be charged a foreign transaction fee, depending on the card. However, the ATM withdrawal fees can add up quickly if you're traveling and withdrawing cash multiple times. Before traveling, contact Bank of America to confirm the exact fees for your debit card.

Alternatives to paying foreign transaction fees

If you travel frequently or make regular international purchases, switching to a Bank of America card with no foreign transaction fees is the most straightforward option. The travel rewards cards mentioned earlier eliminate the 3% charge entirely, and some also offer other travel benefits like travel insurance or airport lounge access.

Another option is to use a different bank's credit card for international purchases. Many banks and credit unions offer cards with no foreign transaction fees, and some specialize in travel rewards. If you're planning a trip, you could open a second card specifically for that travel and use it only abroad, leaving your Bank of America card at home.

A third option is to withdraw cash from your Bank of America account before you travel and use local currency for purchases. This avoids the foreign transaction fee entirely, though you may pay ATM fees depending on where you withdraw the cash. This approach works best if you're traveling to a country where you can easily find ATMs and where cash is widely accepted.

How currency conversion affects your total cost

The 3% foreign transaction fee is only part of what you pay when you use your card abroad. When you make a purchase in a foreign currency, the card network (Visa or Mastercard) converts the amount to U.S. dollars using an exchange rate. Bank of America may add its own markup on top of that conversion rate, which increases your cost further.

For example, if you spend 100 euros and the exchange rate is 1 euro = $1.10, the base cost is $110. The card network applies its conversion rate (which may be slightly different from the mid-market rate), and then Bank of America adds the 3% foreign transaction fee on top of that converted amount. The total cost to you is higher than the straightforward math suggests.

You can see the exact conversion rate and fees Bank of America applied by checking your statement online. The statement shows the original foreign currency amount, the converted dollar amount, and the foreign transaction fee separately, so you can see exactly what each part cost.

Frequently Asked Questions

Do I get charged the foreign transaction fee if I'm a U.S. citizen traveling abroad?

Yes. The fee applies to any purchase made in a foreign currency or outside the United States, regardless of your citizenship or where you live. It does not matter whether you are a tourist or a resident — if your Bank of America card charges the 3% fee, you will pay it on every foreign transaction.

Can I dispute a foreign transaction fee on my statement?

You cannot dispute the fee itself because it is a legitimate charge outlined in your card's terms. However, if you believe the fee was applied incorrectly — for example, if you were charged twice for the same transaction — you can contact Bank of America to investigate. Call the number on the back of your card to report the issue.

Does the foreign transaction fee explore to online purchases from foreign websites?

Yes. If you buy something online from a merchant outside the United States, or if the transaction is processed in a foreign currency, the 3% foreign transaction fee applies even if you are physically in the United States when you make the purchase.

What's the difference between the foreign transaction fee and the currency conversion rate?

The foreign transaction fee is a flat 3% charge Bank of America adds to every foreign purchase. The currency conversion rate is the exchange rate used to convert the foreign currency to dollars, which may include a markup from the card network and Bank of America. Both costs are added to your bill, so you pay both.

If I have a Bank of America card with no foreign transaction fees, do I still pay currency conversion costs?

Yes. Even cards with no foreign transaction fees still go through currency conversion, and the card network and Bank of America may add a markup to the exchange rate. You avoid the 3% fee, but you still pay the cost of converting the currency to dollars.