Traveling abroad is exciting. New cultures, tasty foods, and stunning sights await. But one thing can dampen the fun: unexpected credit card fees. If you’re a Discover It cardholder or thinking about getting one, you’re probably wondering about its foreign transaction fees.
What Are Foreign Transaction Fees?
Foreign transaction fees are extra charges some credit cards add when you make purchases in a foreign currency or with an international merchant.
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These fees are usually 1% to 3% of each transaction. Imagine buying a $100 souvenir in Paris. A 3% fee adds $3 to your bill. Over a trip, these small charges can add up fast.
The good news? The Discover It card has no foreign transaction fees. That’s right—zero.
Whether you’re shopping in Tokyo or booking a hotel in Rome, you won’t pay extra for using your card abroad. This makes the Discover It card a great choice for travelers who want to keep costs low.
Why Choose the Discover It Card for International Travel?
The Discover It card stands out for its traveler-friendly features. It’s not just about avoiding foreign transaction fees.
Here’s why it’s a smart pick for globetrotters:
- No annual fee: You don’t pay a yearly fee to keep the card, so you save more.
- Cashback rewards: Earn 5% cash back on rotating quarterly categories (up to a $1,500 limit when activated) and 1% on all other purchases. Discover matches all cash back earned in your first year.
- Fraud protection: Enjoy peace of mind with zero liability for unauthorized purchases.
- Free FICO score access: Monitor your credit health while traveling, which is handy for managing finances.
These perks make the Discover It card a solid companion for international adventures. But there’s more to know before you pack your bags.
How Does the Discover It Card Work Abroad?
Using your Discover It card overseas is simple, but there are a few things to keep in mind.
The card is accepted in many countries, especially where you see the Discover or Diners Club logo. In Japan, look for the JCB logo, as Discover has a partnership there.
However, acceptance isn’t as widespread as Visa or Mastercard, so it’s wise to check before you go.
Here’s a quick table showing Discover card acceptance in popular travel destinations:
| Country | Acceptance Level | Notes |
|---|---|---|
| Japan | High | Look for JCB or Discover logos |
| Canada | Moderate | Widely accepted at major retailers |
| United Kingdom | Growing | Check for Discover or Diners Club |
| France | Limited | Carry a backup card |
| Mexico | Moderate | Common at tourist spots |
Before traveling, visit Discover’s website to check acceptance in your destination. Always carry a backup payment method, like a Visa or Mastercard, in case Discover isn’t accepted.
Tips for Using Your Discover It Card Internationally
To make the most of your Discover It card abroad, follow these practical tips:
- Notify Discover of your travel plans: Let Discover know your travel dates through their website or app. This prevents your card from being flagged for suspicious activity.
- Pay in local currency: Some merchants offer to convert your purchase to U.S. dollars (called dynamic currency conversion). Decline this and pay in the local currency to avoid poor exchange rates and extra fees.
- Use Discover network ATMs: If you need cash, use ATMs in Discover’s partner network to avoid high cash advance fees. Check Discover’s ATM finder tool before your trip.
- Check your statements: Monitor your account for any unexpected charges. Discover’s mobile app makes this easy.
- Carry a backup card: Since Discover’s acceptance varies, have another card ready for places that don’t take Discover.
Following these tips ensures a smooth, cost-effective experience when using your card abroad.
Are There Other Fees to Watch Out For?
While the Discover It card skips foreign transaction fees, other costs might apply.
Here’s what to keep an eye on:
- Cash advance fees: Withdrawing cash from an ATM costs $10 or 5% of the amount, whichever is greater. Plus, cash advances have a high interest rate with no grace period.
- Late payment fees: The first late payment is free, but after that, you could pay up to $41.
- Balance transfer fees: Transfers cost 3% initially, then up to 5% for future transfers.
To avoid these fees, pay your balance in full each month and avoid cash advances unless absolutely necessary.
How Does Discover Compare to Other Cards?
Not all credit cards are as traveler-friendly as the Discover It card.
Let’s compare it to a few popular options:
| Card Name | Foreign Transaction Fee | Annual Fee | Rewards Program |
|---|---|---|---|
| Discover It Cash Back | 0% | $0 | 5% cash back on rotating categories |
| Chase Sapphire Preferred | 0% | $95 | Travel rewards, 2x points on travel |
| Capital One Venture | 0% | $95 | 2x miles on all purchases |
| Bank of America Travel Rewards | 0% | $0 | 1.5x points on all purchases |
While competitors like Chase and Capital One offer strong travel rewards, they often come with annual fees. The Discover It card’s lack of both foreign transaction and annual fees makes it a budget-friendly choice.
However, its limited acceptance in some countries means you might prefer a card like the Capital One Venture for broader usability.
Why No Foreign Transaction Fees Matter
Eliminating foreign transaction fees can save you a lot on international trips. Let’s break it down with an example. Say you spend $2,000 on a week-long trip abroad.
With a card that charges a 3% foreign transaction fee, you’d pay an extra $60. With the Discover It card, that $60 stays in your pocket. Over multiple trips, these savings add up.
Plus, the Discover It card’s cashback rewards let you earn money while you spend. If you’re strategic about using the 5% cash back categories (like restaurants or gas stations), you could offset travel costs even more.
For example, spending $1,500 in a bonus category earns you $75 cash back—doubled to $150 in your first year with Discover’s Cashback Match program.
Alternatives to the Discover It Card
While the Discover It card is great, it’s not perfect for everyone. If you’re traveling to a country with low Discover acceptance, consider these alternatives:
- Chase Sapphire Preferred: No foreign transaction fees and robust travel rewards, but it has a $95 annual fee.
- Capital One Venture Rewards: Offers 2x miles on all purchases and no foreign transaction fees, but also has a $95 annual fee.
- Revolut Visa Card: A debit card with no foreign transaction fees and multi-currency support, ideal for cash withdrawals.
Each option has its strengths, so compare rewards, fees, and acceptance based on your travel plans.
Maximizing Rewards While Traveling
The Discover It card’s rewards program is a big draw.
To maximize your earnings abroad:
- Activate quarterly categories: Check Discover’s 5% cash back calendar and activate each quarter. Categories often include travel-related spending like restaurants or gas stations.
- Use for everyday purchases: Earn 1% cash back on all non-bonus purchases, which adds up over a trip.
- Redeem flexibly: Redeem cash back as a statement credit, direct deposit, or even for travel purchases like flights or hotels.
By planning your spending around bonus categories, you can make your trip more rewarding.
FAQs: Discover It Card Foreign Transaction Fee
Q. Does the Discover It card charge foreign transaction fees?
A. No, the Discover It card has no foreign transaction fees, making it a cost-effective choice for international purchases.
Q. Can I use my Discover It card anywhere in the world?
A. Discover is accepted in many countries, but acceptance varies. It’s strong in places like Japan and Canada but limited in some European countries. Check Discover’s acceptance map before traveling.
Q. Should I notify Discover before traveling abroad?
A. Yes, inform Discover of your travel plans via their website or app to avoid potential fraud alerts that could freeze your card.
Conclusion
The Discover It card is a fantastic option for travelers who want to avoid foreign transaction fees while earning rewards. With no annual fee, a generous cashback program, and fraud protection, it’s a reliable choice for international adventures.
However, its acceptance isn’t universal, so plan ahead and carry a backup card. By following simple tips like paying in local currency and notifying Discover of your travel plans, you can enjoy a hassle-free experience.
Disclaimer: This blog is for informational purposes only and does not constitute financial advice. Always check the terms and conditions of your Discover It card and consult with a financial advisor for personalized guidance.
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