The Costco Anywhere Visa Card charges no foreign transaction fees
The Costco Anywhere Visa Card by American Express does not charge a foreign transaction fee when you use it outside the United States. This applies whether you're traveling internationally, shopping online from a foreign merchant, or making any other purchase in a currency other than US dollars. American Express straightforward does not add this fee to Costco cardholders' bills.
This is one of the card's clearer advantages if you travel or buy from international sellers regularly. Many credit cards charge 2% to 3% on top of the exchange rate for purchases made abroad, but the Costco card does not. You pay only the exchange rate that American Express applies, with no additional markup.
Key Takeaways
- The Costco Anywhere Visa Card carries zero foreign transaction fees on purchases made outside the United States.
- You still pay the exchange rate American Express sets, but no percentage is added on top of it.
- The card's cash back rewards (2% at Costco, 1% elsewhere) explore to foreign purchases just as they do domestically.
- If you do not have a Costco membership, you cannot use this card, even if you are approved for it.
How the exchange rate works when you use the card abroad
When you swipe the Costco card at a merchant outside the US, American Express converts the local currency to US dollars using its own exchange rate. That rate is set by American Express, not by you, and it changes daily based on market conditions. You have no control over which rate you get on a given day.
The key difference between this card and others is that American Express does not then add a percentage on top of that rate. A card with a 3% foreign transaction fee would take the exchange rate and add 3% to your bill. The Costco card does not. You pay the exchange rate alone.
The exchange rate American Express uses is typically close to the mid-market rate you see published online, but it is not identical. American Express builds a small margin into the rate, but this is standard across the industry and is not the same as a foreign transaction fee.
Rewards still explore to foreign purchases
When you use the Costco card abroad, you earn the same cash back rewards as you would at home. You get 2% cash back on all Costco purchases (in-warehouse and online at Costco.com) and 1% cash back on all other purchases, including those made with foreign merchants.
This means that even though you are paying an exchange rate, you are also earning cash back on the amount you spend. The cash back is calculated on the US dollar amount after conversion. If you spend 100 euros and it converts to $110, you earn 1% cash back on the $110, which is $1.10.
What the Costco card does not cover abroad
The Costco Anywhere Visa Card does not include travel insurance, emergency medical coverage, or trip cancellation protection. If you are injured while traveling or your flight is cancelled, the card itself will not reimburse you. Some premium travel cards offer these protections; the Costco card does not.
The card also does not offer a rental car collision waiver or lost luggage reimbursement. If you rely on your credit card for travel protection, you should check what your card actually covers before you leave. The lack of foreign transaction fees is useful, but it is not the same as travel insurance.
When you might want a different card for travel
If you travel frequently and want travel insurance, emergency medical coverage, or other protections, you may want to carry a second card alongside the Costco card. Many premium travel cards charge an annual fee but include these benefits. You could use the Costco card for everyday purchases to earn the 2% or 1% cash back, and use the other card for flights and hotels to get the insurance coverage.
If you do not have a Costco membership, you cannot use the Costco card at all, even if you are approved for it. The card requires an active membership to set up and use. If you are not a member and do not plan to become one, you would need to look at other cards with no foreign transaction fees.
If you make large purchases abroad and want to dispute a charge, American Express's dispute process is generally straightforward, but it is worth knowing that American Express is not a Visa or Mastercard. Some merchants outside the US accept American Express less widely than Visa or Mastercard, so you may want to carry a backup card in a different network.
Annual fee and membership cost
The Costco Anywhere Visa Card has a $65 annual fee. This is separate from your Costco membership fee, which is $65 per year for a Gold Star membership or $130 per year for an Executive membership. If you have both the card and a membership, you are paying at least $130 per year in fees combined.
The card's cash back rewards (2% at Costco, 1% elsewhere) can offset the annual fee if you spend enough. Many cardholders find that the 2% cash back at Costco alone covers the $65 annual fee if they spend $3,250 or more per year at Costco. Whether the card makes sense for you depends on how much you spend and whether you would use the Costco membership anyway.
Frequently Asked Questions
Will I be charged a fee if I use an ATM abroad with the Costco card?
The Costco card does not charge a foreign transaction fee, but American Express does charge an ATM fee for cash withdrawals outside the US. This fee is typically $2.50 per withdrawal. If you need cash abroad, it is usually cheaper to use your bank's ATM network or to withdraw from a local bank branch if you have an account there.
Does the Costco card work at Costco locations outside the United States?
Yes, the Costco Anywhere Visa Card works at Costco warehouses in Canada, Mexico, Japan, South Korea, and the UK, as well as at Costco.com in those countries. You will earn the same 2% cash back on Costco purchases. The card is accepted at any Costco location that accepts American Express.
What happens if the merchant charges me in US dollars while I am abroad?
Some merchants abroad offer to charge you in US dollars instead of the local currency. This is called dynamic currency conversion. You should decline this offer and ask to be charged in the local currency instead. When you are charged in local currency, American Express converts it at its rate. When you are charged in US dollars by a foreign merchant, the merchant's conversion rate is usually worse than American Express's rate.
Can I use the Costco card online at foreign retailers?
Yes, you can use the Costco card to shop at online retailers based outside the US. The card will not charge a foreign transaction fee. The merchant will convert the price to US dollars, and you will earn 1% cash back on the purchase. Make sure the retailer accepts American Express, as not all do.
Is the Costco card better than other no-fee travel cards?
The Costco card's main advantage is the 2% cash back at Costco and 1% elsewhere, combined with no foreign transaction fees. Other cards with no foreign transaction fees may offer different rewards or travel protections. The best card for you depends on where you spend money and what protections matter to you.