How do I avoid foreign transaction fees?

Use a card that does not charge them. Several travel-focused cards and multi-currency accounts charge nothing on foreign purchases. Also withdraw larger amounts less often where ATM fees are flat, and always decline the terminal's offer to convert into your home currency.

What is a typical foreign transaction fee?

Around 3% of each purchase made in another currency, though it varies by issuer. ATM withdrawals often carry an additional flat fee, sometimes from both your own bank and the machine operator.

Is it cheaper to pay by card or cash abroad?

Usually card, if you have one without foreign transaction fees, because card networks convert close to the mid-market rate. Cash obtained from an airport bureau de change is typically the most expensive option.

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How to stop paying 3% on everything abroad

The highest-value thing on this website, and it has nothing to do with our app.

If you take one piece of advice from this site, take this one: sort your card out before you travel. A typical high-street debit or credit card adds roughly 3% to every foreign purchase. On a two-week trip where you spend £2,000, that is £60 — considerably more than every app you will ever buy for travel, combined.

The three charges to look for

Foreign transaction fee. A percentage of each purchase made in another currency, commonly around 3%. Charged whether you tap, insert or pay online.
ATM withdrawal fee. Often a flat amount plus a percentage, sometimes from your own bank and separately from the machine's operator. Two different organisations can charge you for the same withdrawal.
The rate itself. Some providers also apply a rate slightly worse than the card network's. This one is invisible unless you compare against the mid-market rate.

What to do about it

Check what your current card charges. Search your bank's site for "non-sterling transaction fee" or "foreign transaction fee". It will be in the fee schedule, not the marketing page.
Get a card with no foreign transaction fee. Several travel cards and specialist accounts charge nothing on foreign purchases. This is the whole fix, and it takes about ten minutes to apply for.
Withdraw larger amounts, less often. Where fees are flat per withdrawal, four small withdrawals cost four times as much as one larger one.
Always decline the terminal's conversion offer. See dynamic currency conversion — this can undo the saving from a good card in a single transaction.
Carry a backup card, stored separately. Cards get blocked, swallowed and lost. This is not about fees but it will save a trip.

A NOTE ON WHAT WE SELL

We make a $4.99 currency converter. A fee-free card will save a regular traveller that much in the first afternoon. Do the card first — the converter is a convenience, and this is money.

Tell your bank, or do not

Most banks no longer need travel notifications and detect location from the transaction. A few still do, and a blocked card on arrival is a bad start. It costs nothing to check your bank's current policy the week before you fly.

Once the card is sorted

RoamRate handles the other half — knowing what a price means before you agree to it. Free for five major currencies.

Download on the App Store

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