Planning a trip abroad or shopping online from an international retailer? If you’re a Bank of America customer, you might be wondering about international transaction fees. These fees can sneak up on you, adding extra costs to your purchases or cash withdrawals.
What Are International Transaction Fees?
International transaction fees, sometimes called foreign transaction fees, are charges your bank or credit card issuer adds when you make a purchase or withdrawal in a foreign currency.
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These fees also apply when you buy something online from a retailer based outside the United States, even if the transaction is in U.S. dollars.
For Bank of America customers, these fees typically range from 0% to 3%, depending on the card or account you use.
Think of it like a small tax for using your card abroad. It’s usually a percentage of the transaction amount, and it can add up quickly if you’re traveling or shopping internationally often.
Knowing how these fees work can help you plan smarter and save money.
Bank of America’s International Transaction Fees: The Basics
Bank of America applies international transaction fees to both debit and credit card transactions. The exact fee depends on the type of card or account you have.
Most Bank of America debit and credit cards charge a 3% fee for transactions processed outside the U.S. However, some premium cards or accounts offer waivers or no fees at all.
Here’s a quick look at how these fees apply:
- Debit Cards: Most Bank of America debit cards come with a 3% international transaction fee for purchases and ATM withdrawals. The fee is calculated based on the U.S. dollar equivalent of the transaction.
- Credit Cards: Many Bank of America credit cards also charge a 3% foreign transaction fee, but some travel-focused cards, like the Bank of America Travel Rewards credit card, have no foreign transaction fees.
- ATM Withdrawals: When you use a Bank of America debit card at a foreign ATM, you’ll likely pay a 3% international transaction fee plus a $5 non-Bank of America ATM usage fee, unless you use a partner ATM in the Global ATM Alliance.
These fees can vary based on your account tier or card type, so it’s worth checking the fine print before you travel.
How Do These Fees Affect You?
Let’s say you’re on a trip to Paris, and you use your Bank of America debit card to withdraw 200 euros from an ATM.
If the exchange rate is 1 euro = $1.10, your withdrawal is $220 in U.S. dollars.
With a 3% international transaction fee, you’d pay an extra $6.60.
Add a $5 non-Bank of America ATM fee, and your total cost for that withdrawal could be $11.60 on top of the $220. That’s a pricey ATM visit!
The same applies to purchases. If you buy a $100 souvenir from a London shop using your Bank of America credit card, a 3% fee adds $3 to your bill.
These small charges can pile up over a trip, so it’s smart to plan ahead.
Which Bank of America Cards Have No Foreign Transaction Fees?
Not all Bank of America cards come with international transaction fees. If you’re a frequent traveler, choosing a card with no foreign transaction fees can save you a lot.
Here are some Bank of America cards that don’t charge these fees:
- Bank of America Travel Rewards Credit Card: This card is designed for travelers and has no foreign transaction fees. It also offers 1.5 points per dollar spent, which you can redeem for travel-related purchases.
- Bank of America Premium Rewards Credit Card: A premium option with no foreign transaction fees, this card offers 2 points per dollar on travel and dining and 1.5 points on other purchases.
- Bank of America Business Advantage Travel Rewards World Mastercard: Ideal for business travelers, this card also skips the foreign transaction fees and offers travel rewards.
These cards are great choices if you travel often or shop with international retailers.
However, some of these cards may have annual fees, so weigh the costs against the benefits.
| Card Name | Foreign Transaction Fee | Annual Fee | Rewards |
|---|---|---|---|
| Travel Rewards Credit Card | 0% | $0 | 1.5 points per $1 |
| Premium Rewards Credit Card | 0% | $95 | 2 points per $1 on travel/dining |
| Business Advantage Travel Rewards | 0% | $0 | 3 points per $1 on travel |
Tips to Avoid or Reduce International Transaction Fees
Nobody likes paying extra fees, right? Here are some practical tips to help you avoid or minimize Bank of America’s international transaction fees:
- Use a Card with No Foreign Transaction Fees: If you have a Bank of America Travel Rewards or Premium Rewards card, use it for international purchases to skip the 3% fee.
- Choose Global ATM Alliance Partners: Bank of America is part of the Global ATM Alliance, which includes banks like Barclays (UK), Scotiabank (Canada, Mexico, and the Caribbean), and BNP Paribas (France). Using their ATMs can help you avoid the $5 non-Bank of America ATM fee, though the 3% international transaction fee may still apply.
- Decline Dynamic Currency Conversion: When using your card abroad, merchants or ATMs may offer to convert your transaction to U.S. dollars. This often comes with a higher exchange rate or extra fees. Always choose to pay in the local currency to get a better rate from Bank of America.
- Withdraw Larger Amounts Less Often: If your debit card has a flat ATM fee, withdrawing larger amounts in fewer transactions can reduce the total fees you pay.
- Notify Bank of America Before You Travel: Let your bank know your travel plans to avoid having your card flagged for suspicious activity. You can do this through online banking or by calling customer service.
- Consider Alternatives: Services like Wise or Revolut offer debit cards with no foreign transaction fees and competitive exchange rates. These can be cheaper options for international spending.
By planning ahead, you can keep more money in your pocket while traveling or shopping online.
What About Preferred Rewards Members?
If you’re enrolled in Bank of America’s Preferred Rewards program, you might get some fee waivers.
For example, Diamond and Diamond Honors tier members (who maintain high account balances) can avoid the 3% international transaction fee and non-Bank of America ATM fees when using their debit card abroad.
This perk can make a big difference for frequent travelers with significant account balances.
To qualify for these tiers, you need a combined balance of $1 million for Diamond or $10 million for Diamond Honors across your Bank of America and Merrill accounts.
If that’s not you, don’t worry the other tips in this blog can still help you save.
Alternatives to Bank of America for International Transactions
Sometimes, looking beyond Bank of America can save you money on international transactions.
Here are a few alternatives to consider:
- Wise Multi-Currency Card: This card lets you hold and spend multiple currencies with no foreign transaction fees. You only pay a small conversion fee, and you get the mid-market exchange rate.
- Revolut: Similar to Wise, Revolut offers a debit card with no foreign transaction fees and competitive exchange rates. It’s great for travelers who want flexibility.
- Capital One: Many Capital One credit and debit cards, like the Capital One 360 Checking account, have no foreign transaction fees, making them a solid option for international use.
These alternatives can be especially helpful if you don’t have a Bank of America card with no foreign transaction fees or if you want to avoid high ATM fees.
Planning Your International Transactions
Before you head abroad or make an online purchase from an international retailer, take a few minutes to plan. Check which of your Bank of America cards has the lowest fees, and consider using a travel-friendly card for purchases.
If you need cash, look for Global ATM Alliance partner banks to avoid extra fees. And don’t forget to notify Bank of America about your travel plans to keep your card active.
By being proactive, you can avoid surprises on your bank statement and make your international adventures more budget-friendly.
FAQs: Bank of America International Transaction Fees
Q. Does every Bank of America card have a foreign transaction fee?
A. No, not every card has a foreign transaction fee. Cards like the Bank of America Travel Rewards Credit Card and Premium Rewards Credit Card have no foreign transaction fees, while most other debit and credit cards charge 3%.
Q. Can I avoid the $5 ATM fee when using my Bank of America debit card abroad?
A. Yes, you can avoid the $5 non-Bank of America ATM fee by using ATMs from Global ATM Alliance partners, like Barclays or Scotiabank. However, the 3% international transaction fee may still apply unless you’re a Diamond or Diamond Honors Preferred Rewards member.
Q. What happens if I pay in U.S. dollars abroad?
A. If you choose to pay in U.S. dollars abroad (dynamic currency conversion), you might face higher exchange rates or additional fees from the merchant or ATM. It’s usually better to pay in the local currency to get Bank of America’s exchange rate, which is often more favorable.
Conclusion
Navigating Bank of America’s international transaction fees doesn’t have to be complicated.
By understanding how these fees work and choosing the right card or account, you can save money on your next trip or online purchase.
Stick to cards with no foreign transaction fees, use Global ATM Alliance partners, and always pay in the local currency to avoid extra costs.
With a little planning, you’ll keep your travel budget in check and enjoy your international adventures without worrying about hidden fees.
Disclaimer: The information in this blog is for general informational purposes only and does not constitute financial advice. Always check with Bank of America or your financial institution for the most current fee schedules and account terms before making financial decisions.
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