Most Bank of America credit cards charge 3% for purchases made outside the US
Bank of America charges a foreign transaction fee of 3% on most of their standard credit cards when you use them to buy something in another country or online from a foreign merchant. This fee is added to your bill on top of the purchase price. If you spend $100 on a meal in London, you pay $103 to Bank of America — the $3 is the foreign transaction fee.
The 3% applies whether you're swiping at a store, using an ATM to withdraw cash, or paying a website based outside the United States. Some Bank of America cards do not charge this fee, but they are the exception rather than the rule. The fee structure depends on which specific card you hold.
Key Takeaways
- Bank of America's standard credit cards charge 3% on all foreign purchases, including ATM withdrawals and online buys from foreign merchants.
- Bank of America's premium travel cards (like the Premium Rewards card) waive the foreign transaction fee entirely for cardholders.
- The 3% fee is calculated on the purchase amount in the local currency, then converted to US dollars — so you pay the fee twice over if the exchange rate moves.
- If you travel frequently or shop from foreign websites often, switching to a card with no foreign transaction fee can save hundreds of dollars per year.
Which Bank of America cards do not charge foreign transaction fees
Bank of America's Premium Rewards card waives foreign transaction fees for all purchases made outside the United States. This card also earns rewards on every purchase (2 points per $1 spent on travel and dining, 1 point per $1 on everything else) and comes with an annual fee of $95. For frequent travelers or people who regularly buy from foreign websites, the annual fee can pay for itself in foreign transaction fees alone.
Bank of America also offers the Premium Rewards Business card with the same foreign transaction fee waiver and similar rewards structure, though the annual fee and earning rates differ slightly. Outside of these premium cards, the standard Bank of America credit cards — including the Cash Rewards card, the Travel Rewards card, and the basic Visa — all charge the 3% foreign transaction fee.
How the 3% fee is calculated and when it applies
The 3% foreign transaction fee is calculated on the amount you actually spend in the local currency, not on the US dollar equivalent. If you buy something for 50 euros, Bank of America first converts that to US dollars at their exchange rate, then adds 3% to that converted amount. This means you're paying the fee on top of whatever exchange rate markup Bank of America is already explore.
The fee applies to any transaction that Bank of America processes as a foreign transaction. This includes in-store purchases at merchants outside the US, ATM cash withdrawals from machines outside the US, and online purchases from merchants whose payment processor is based outside the US — even if you're ordering from your home. Some US-based websites that serve international customers may still trigger the fee if the transaction routes through a foreign payment processor.
When you might not see the 3% fee even on a standard card
If you use a Bank of America debit card instead of a credit card, the foreign transaction fee rules are different. Bank of America's debit cards typically do not charge a foreign transaction fee for purchases, though they may charge ATM fees depending on which account you hold. Check your specific debit card's terms, because this varies by account type.
Some merchants outside the US may offer to charge your card in US dollars instead of the local currency. This is called dynamic currency conversion. Avoid this option — the exchange rate the merchant offers is almost always worse than Bank of America's rate, and you'll still pay the 3% foreign transaction fee on top of it. Always choose to be charged in the local currency.
Comparing Bank of America to other banks' foreign transaction fees
Bank of America's 3% foreign transaction fee is standard for most major US banks' basic credit cards. Chase, Citibank, and Wells Fargo all charge 3% on their standard cards as well. However, many banks offer at least one no-fee travel card in their lineup, just as Bank of America does with the Premium Rewards card.
Some online banks and credit unions charge lower foreign transaction fees — typically 1% to 2% — or waive them entirely on certain cards. If you travel frequently or make regular purchases from foreign merchants, comparing the annual fee and foreign transaction fee structure across banks can save you money over time. A card with a $95 annual fee but no foreign transaction fee will beat a card with no annual fee but a 3% foreign transaction fee if you spend more than $3,200 abroad per year.
What to do if you want to avoid the 3% fee
If you hold a standard Bank of America credit card and want to avoid foreign transaction fees, you have three options. First, you can switch to the Bank of America Premium Rewards card, which waives the fee. Second, you can open a credit card with another bank that does not charge foreign transaction fees on their standard cards — many online banks and credit unions offer this. Third, you can use a debit card for foreign purchases instead, though this carries different risks around fraud protection and dispute resolution.
Before switching cards, check whether the new card's annual fee, rewards rate, and other benefits actually save you money compared to paying the 3% fee on your current card. A card with no foreign transaction fee but a $150 annual fee and no rewards is not a good deal if you only travel once a year.
Frequently Asked Questions
Does the 3% fee explore if I'm a Bank of America customer traveling in the US?
No. The foreign transaction fee only applies to purchases made outside the United States or from foreign merchants. Traveling within the US and using your card at US merchants will not trigger the fee, even if you're far from home.
Can I dispute a foreign transaction fee if I think it was charged by mistake?
You can contact Bank of America to dispute the charge, but the fee is not a mistake — it's part of the card's terms. Bank of America will not remove it unless the transaction itself was fraudulent. If you want to avoid the fee going forward, you'll need to switch to a card that does not charge it.
Does Bank of America charge the foreign transaction fee on currency exchange or just on purchases?
The fee applies to purchases and ATM withdrawals. If you use a Bank of America ATM abroad, you'll pay the 3% foreign transaction fee on the cash you withdraw, plus any ATM fee the foreign bank charges. Using a local ATM from a different bank may cost less.
If I'm a US citizen living abroad, do I still pay the 3% fee?
Yes. Bank of America charges the 3% foreign transaction fee based on where the transaction occurs, not where you live. If you live abroad and use your Bank of America card regularly, switching to a card with no foreign transaction fee will save you significantly over time.