See exactly how much a foreign transaction fee and currency conversion markup add to your overseas purchases or travel spending.
Most credit and debit cards charge a foreign transaction fee, and the network converting the currency often applies an additional exchange rate markup. Both are usually charged as a percentage of each purchase, so they quietly add up over a trip or a series of online purchases from overseas retailers.
Total Fee % = Foreign Transaction Fee % + Currency Markup %
Fee Amount = Purchase Amount × Total Fee % ÷ 100
Total Cost = Purchase Amount + Fee Amount
Enter the purchase amount in your home currency, your card's foreign transaction fee (commonly 0%–3%), any extra currency conversion markup your bank applies, and how many similar transactions you expect to make (for example, over a vacation).
A $1,000 purchase with a 3% foreign transaction fee and a 1% conversion markup costs an extra $40, for a total of $1,040. Over 5 similar transactions during a trip, those fees alone would total $200 — money a no-foreign-fee card would save entirely.
It's typically a percentage (often 1-3%) of the purchase amount, charged by your card issuer for transactions made in a foreign currency or processed abroad.
It usually applies to any transaction processed in a foreign currency or through a foreign bank, including many online purchases from international merchants, even if you're not traveling.
Using a credit card specifically marketed as having no foreign transaction fees is the most common way to avoid this cost while traveling or shopping internationally.