Have you ever dreamed of jetting off to Paris for some croissants or exploring Tokyo’s bustling streets, only to worry about those pesky credit card fees eating into your budget? If you’re eyeing the Discover it Miles credit card, you’re in luck.
This card is popular among folks who love earning rewards on everyday spending while keeping things simple. But what about that foreign transaction fee?
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What Is the Discover it Miles Credit Card?
Let’s start with the basics. The Discover it Miles is a rewards credit card designed for people who want flexibility without a lot of hassle.
It’s not just for travel; you can use it for groceries, gas, or online shopping too. The card earns you 1.5 miles for every dollar you spend, no matter what you buy. That’s straightforward, right?
One standout feature is the Miles Match program. At the end of your first year, Discover doubles all the miles you’ve earned.
So if you rack up 20,000 miles, they add another 20,000. It’s like getting a bonus just for using the card normally.
Plus, there’s no annual fee, which means you don’t pay extra to keep it in your wallet.
Redemption is easy too. You can turn miles into statement credits for travel purchases, like flights or hotels, or even get cash back deposited into your bank account.
Each mile is worth one cent, so 100 miles equal a dollar. No blackouts or restrictions to worry about.
Understanding Foreign Transaction Fees
Before we get to the specifics, let’s talk about what a foreign transaction fee really is.
When you use your credit card outside the U.S., or even for online purchases from foreign merchants, some cards tack on an extra charge.
This fee is usually 1% to 3% of the transaction amount. It might not sound like much, but it adds up fast on a big trip.
For example, if you spend $1,000 on hotels and meals abroad, a 3% fee means an extra $30 out of your pocket. These fees cover the cost of currency conversion and processing international payments.
Not all cards charge them, though. Cards aimed at travelers often skip this fee to make them more appealing for global use.
Why does this matter? If you’re an occasional international shopper or a frequent flyer, avoiding these fees can save you money and make budgeting simpler.
Does the Discover it Miles Card Charge Foreign Transaction Fees?
Good news: The Discover it Miles credit card has no foreign transaction fee. That’s right, zero.
You can swipe or tap your card anywhere in the world without worrying about that extra percentage. This makes it a solid choice for trips abroad or buying from international websites.
Discover confirms this on their site, and it’s a policy that applies to all their cards, including this one. They handle the currency conversion themselves, but without adding a fee on top.
Users on forums like Reddit echo this, sharing experiences of using the card in Europe or Asia with no surprises on their statements.
Just keep in mind that while there’s no fee from Discover, some merchants might add their own dynamic currency conversion charge.
That’s when they offer to bill you in U.S. dollars instead of the local currency, often at a worse exchange rate. Always choose to pay in the local currency to avoid that.
Benefits of Using the Discover it Miles Abroad
Traveling with the Discover it Miles feels rewarding in more ways than one. Since you earn 1.5 miles on every purchase, your souvenirs, taxi rides, and cafe stops all add up to future perks.
Imagine earning miles on a gelato in Italy that you later redeem for a flight credit. Sweet deal.
Acceptance is another plus. Discover is accepted in over 200 countries, though it’s not as widespread as Visa or Mastercard in some spots.
In places like China or Japan, you might find more merchants take it thanks to partnerships. If you’re heading somewhere remote, pack a backup card just in case.
Security features help too. Discover offers fraud protection, and you can freeze your card instantly through the app if something seems off.
Plus, they send real-time alerts for international transactions, so you stay in the loop.
How to Maximize Rewards While Traveling
Want to get the most miles from your trips? Start by using the card for all travel-related buys.
Book flights, hotels, or car rentals directly, and you’ll earn those 1.5 miles per dollar. Then, redeem them as a statement credit to offset the cost.
Pair it with the app for easy tracking. You can check your miles balance on the go and even pay bills from abroad.
Don’t forget the first-year match; spend wisely in year one to double your haul.
Here are some quick tips:
- Notify Discover before traveling to avoid any holds on your account.
- Use contactless payments where available for speed and security.
- Track exchange rates; Discover uses competitive ones, but it’s good to compare.
- Combine with other rewards programs, like hotel loyalty points, for extra value.
Comparing the Discover it Miles with Other Cards
Not sure if this is the best fit? Let’s look at how it stacks up against similar no-foreign-fee cards.
I’ve put together a simple table to compare key aspects:
| Card Name | Foreign Transaction Fee | Annual Fee | Rewards Rate | Welcome Bonus |
|---|---|---|---|---|
| Discover it Miles | 0% | $0 | 1.5 miles per $1 | Miles match after first year |
| Capital One VentureOne | 0% | $0 | 1.25 miles per $1 | 20,000 miles after $500 spend |
| Chase Sapphire Preferred | 0% | $95 | 5x on travel, 3x dining | 60,000 points after $4,000 spend |
| Bank of America Travel Rewards | 0% | $0 | 1.5 points per $1 | 25,000 points after $1,000 spend |
As you can see, the Discover it Miles holds its own with no fees and solid rewards.
If you want higher rates on specific categories, something like the Chase card might appeal, but it comes with an annual fee after the first year.
Pros and Cons of the Discover it Miles
Every card has upsides and downsides. Here’s a balanced look to help you decide.
Pros:
- No foreign transaction fee, perfect for international spending.
- Unlimited 1.5 miles on all purchases, no categories to track.
- First-year miles match boosts your earnings big time.
- Flexible redemptions: cash back or travel credits at the same value.
- No annual fee, so it’s low-risk to try.
Cons:
- Rewards rate is flat, not boosted for travel like some competitors.
- No intro APR on purchases right now, so carry a balance wisely.
- Acceptance might be limited in very rural areas abroad.
- Miles value is fixed at one cent each, no transfer partners for potentially higher value.
If these pros align with your habits, it’s a winner. I’ve chatted with friends who swear by it for simplicity during trips to Mexico or Canada.
Real-Life Scenarios: When This Card Shines
Picture this: You’re backpacking through Europe for two weeks. You use the Discover it Miles for train tickets, hostel stays, and street food.
No foreign fees mean your $800 in spending stays at $800, plus you earn 1,200 miles. Come year-end, that doubles to 2,400 miles, worth $24 back.
Or maybe you’re shopping online from a UK site for that perfect gift. Again, no fee, and miles add up. It’s these everyday wins that make the card feel user-friendly.
Potential Drawbacks and How to Handle Them
One thing to watch: The variable APR is currently around 13.49% to 24.49%, depending on your credit. If you carry a balance, interest can pile up. Pay in full each month to avoid that.
Also, while miles don’t expire, keep the account active. A quick purchase every few months does the trick.
Alternatives If It Doesn’t Fit
If you travel a ton and want more perks, consider the Capital One Venture. It has no foreign fees and a higher welcome bonus, but the rewards rate is slightly lower on everyday spend.
For premium options, the American Express Gold offers great dining rewards abroad, though it has a $250 annual fee.
Stick with what matches your lifestyle. For many, the Discover it Miles strikes a great balance.
FAQs: Discover It Miles Credit Card Foreign Transaction Fee
Q. What is the foreign transaction fee on the Discover it Miles credit card?
A. There is no foreign transaction fee on the Discover it Miles card. You can use it internationally without extra charges from Discover.
Q. How do I redeem miles for travel?
A. Log into your account, go to the rewards section, and apply miles as a statement credit for eligible travel purchases made in the last 180 days.
Q. Is the Discover it Miles accepted everywhere abroad?
A. It’s accepted in most places, but check the Discover acceptance map for your destination. Carry a Visa or Mastercard as backup if needed.
Q. Can I use this card for cash advances abroad?
A. Yes, but there’s a fee of $10 or 5% of the amount, whichever is greater, plus a higher APR. Avoid if possible.
Conclusion
The Discover it Miles credit card is a smart pick for anyone who wants to avoid foreign transaction fees while earning steady rewards. Its no-fee structure, simple earning, and flexible redemptions make it ideal for intermediate users like you.
Disclaimer: This blog is for informational purposes only and not financial advice. Credit card terms can change, so check the official Discover website for the latest details. Always review your credit situation before applying.
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