Traveling abroad or shopping online from international stores is exciting, but hidden credit card fees can sour the experience. If you are a Citi Double Cash Card user or thinking about getting one, you might be wondering about its foreign transaction fees.
What Is the Citi Double Cash Card?
The Citi Double Cash Card is a favorite for many because of its simple cashback rewards. You earn 2% cash back on every purchase: 1% when you buy and another 1% when you pay it off.
Table of Contents
Plus, it has no annual fee, making it a budget-friendly choice for everyday spending. But when it comes to using this card abroad or with international merchants, there is one thing you need to watch out for: the foreign transaction fee.
What Are Foreign Transaction Fees?
Before we get into the specifics of the Citi Double Cash Card, let us clarify what a foreign transaction fee is. This is a surcharge some credit cards add when you make a purchase outside the United States or with a merchant based overseas.
It is usually a percentage of the transaction amount and shows up on your statement as an extra charge. These fees can add up quickly, especially on a big trip or when shopping online from international retailers.
Does the Citi Double Cash Card Have a Foreign Transaction Fee?
Yes, the Citi Double Cash Card does have a foreign transaction fee. According to Citibank, the fee is 3% of the transaction amount in U.S. dollars. This is a standard rate for many credit cards that charge foreign transaction fees.
For example, if you spend $100 at a cafe in Paris, you will be charged an extra $3 on top of the purchase. The same applies to online purchases from international merchants, even if you are sitting at home in the U.S.
| Purchase Amount (USD) | Foreign Transaction Fee (3%) |
|---|---|
| $50 | $1.50 |
| $100 | $3.00 |
| $500 | $15.00 |
| $1,000 | $30.00 |
This table shows how the fee scales with your spending. A small purchase might not sting too much, but a week-long vacation with $2,000 in expenses could add $60 in fees alone. That is money you could spend on souvenirs or a nice dinner instead.
How Does the Fee Affect Your Rewards?
The Citi Double Cash Card is loved for its 2% cashback rewards, but the 3% foreign transaction fee can eat into those benefits when you are spending abroad.
Let us break it down with a quick example:
- You spend $100 at a store in London.
- You earn 2% cash back, which is $2.
- But the 3% foreign transaction fee adds $3 to your bill.
- Net result: You lose $1 on the transaction ($3 fee minus $2 cash back).
In short, the foreign transaction fee wipes out your rewards and then some. If you travel often or shop with international merchants, this card might not be the best choice for those transactions.
When Do Foreign Transaction Fees Apply?
You might be wondering when exactly these fees kick in.
Here is a quick rundown:
- In-person purchases abroad: Any transaction made outside the U.S., like buying souvenirs in Tokyo or dining in Rome, triggers the fee.
- Online purchases with international merchants: If you buy from a foreign website (say, a clothing store in the UK), the fee applies, even if the purchase is shipped to the U.S.
- ATM withdrawals: Using your Citi Double Cash Card for cash advances abroad will also incur the 3% fee, plus a cash advance fee (typically 5% or $10, whichever is higher).
The key is that if a foreign bank processes the transaction, the fee will likely apply. Always check with the merchant or your card statement to confirm.
How Does Citi Calculate the Exchange Rate?
Besides the foreign transaction fee, another factor to consider is the exchange rate. When you make a purchase in a foreign currency, Citi converts it to U.S. dollars using the exchange rate set by Mastercard (since this is a Mastercard product).
This rate is usually close to the mid-market rate, but Citi may add a small markup. The 3% foreign transaction fee is then applied to the converted U.S. dollar amount, not the original foreign currency amount.
For example, if you buy something for 100 euros, Citi converts it to dollars (say, $110 based on the exchange rate). Then, the 3% fee is calculated on the $110, adding $3.30 to your bill. Knowing this can help you budget for international trips.
Comparing the Citi Double Cash Card to Other Cards
The Citi Double Cash Card is great for everyday spending in the U.S., but its foreign transaction fee makes it less ideal for international use. Many other credit cards waive this fee, which can save you money if you travel often.
Here is a quick comparison:
| Card Name | Foreign Transaction Fee | Annual Fee | Rewards Rate |
|---|---|---|---|
| Citi Double Cash Card | 3% | $0 | 2% cash back (1% + 1%) |
| Capital One Venture | 0% | $95 | 2X miles on all purchases |
| Chase Sapphire Preferred | 0% | $95 | 2X-5X points on travel/dining |
| Discover it Cash Back | 0% | $0 | 5% on rotating categories, 1% on others |
If you are a frequent traveler, a card with no foreign transaction fees, like the Capital One Venture or Chase Sapphire Preferred, might be a better fit.
However, if most of your spending is in the U.S., the Citi Double Cash Card is still a solid choice thanks to its rewards and no annual fee.
Tips to Avoid Foreign Transaction Fees
Nobody likes paying extra fees, so here are some practical ways to avoid or minimize foreign transaction fees when using the Citi Double Cash Card or any card:
- Use a card with no foreign transaction fees: Consider getting a secondary card for international travel, like the Costco Anywhere Visa by Citi or the Capital One Quicksilver, both of which have no foreign transaction fees.
- Pay in cash or local currency: When traveling, use cash for small purchases to avoid card fees. If a merchant offers to charge you in U.S. dollars (dynamic currency conversion), decline and pay in the local currency to get a better exchange rate.
- Shop with U.S.-based merchants: When buying online, stick to U.S. retailers to avoid foreign transaction fees.
- Check your statement: Always review your credit card statement to spot any unexpected fees and address them with Citi’s customer service if needed.
Is the Citi Double Cash Card Worth It for International Travel?
The Citi Double Cash Card shines for everyday purchases in the U.S., but its 3% foreign transaction fee makes it less appealing for international travel. If you only take one or two trips a year, the fees might not be a dealbreaker.
For example, spending $1,000 abroad would cost you $30 in fees, which is manageable for occasional travelers. But if you are a frequent globetrotter or shop often with international merchants, the fees can add up fast.
The card is still a great choice if:
- You mainly spend in the U.S. and want a simple 2% cashback rewards structure.
- You can pay off your balance each month to avoid interest and maximize rewards.
- You already have another card with no foreign transaction fees for international use.
If international travel is a big part of your life, consider pairing the Citi Double Cash Card with a travel-focused card that skips the foreign transaction fees.
How to Maximize Your Citi Double Cash Rewards
Even with the foreign transaction fee, you can still make the most of the Citi Double Cash Card.
Here are some tips to boost your rewards:
- Pay on time: To earn the full 2% cash back, you must pay at least the minimum balance due each month. Set up autopay to avoid missing payments.
- Use for everyday purchases: The card is perfect for groceries, gas, or bills since there are no category restrictions or caps on rewards.
- Redeem wisely: Cash back comes as ThankYou Points, which you can redeem as a statement credit, direct deposit, or check. You can also use points for travel or gift cards through Citi’s portal.
- Take advantage of the welcome offer: New cardholders can earn $200 cash back (20,000 ThankYou Points) after spending $1,500 in the first six months.
FAQs: Citi Double Cash Foreign Transaction Fee
Q. Does the Citi Double Cash Card charge foreign transaction fees for online purchases?
A. Yes, if the online merchant is based outside the U.S., you will be charged a 3% foreign transaction fee, even if the purchase is delivered to a U.S. address.
Q. Can I avoid the foreign transaction fee on the Citi Double Cash Card?
A. You cannot avoid the fee on this card, but you can use a different card with no foreign transaction fees or pay in cash for international purchases.
Q. Are there Citi cards with no foreign transaction fees?
A. Yes, cards like the Costco Anywhere Visa by Citi and the Citi AAdvantage Platinum Select World Elite Mastercard have no foreign transaction fees.
Conclusion
The Citi Double Cash Card is a fantastic option for earning 2% cash back on everyday purchases, especially if you stay in the U.S. However, its 3% foreign transaction fee makes it less ideal for international travel or shopping with foreign merchants.
By understanding when and how these fees apply, you can plan your spending to avoid surprises. For frequent travelers, pairing this card with one that has no foreign transaction fees is a smart move.
Disclaimer: The information in this blog is for general guidance only and is accurate as of June 28, 2025. Credit card terms and fees can change, so always verify details with Citibank before making financial decisions.
About The Author
