The Costco Anywhere Visa Card has no foreign transaction fee

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 swipe it in a store, withdraw cash from an ATM, or make an online purchase from a foreign merchant. The card works the same way abroad as it does at home — no extra percentage added to your bill for the currency conversion.

This is one of the card's main selling points for people who travel internationally or shop from overseas retailers. You pay only what the merchant charges and what American Express charges for the currency conversion itself, which is typically built into the exchange rate they offer. No separate fee appears on your statement labeled "foreign transaction fee" or "international service fee."

Key Takeaways

  • The Costco Anywhere Visa Card charges zero percent foreign transaction fees on purchases made outside the United States.
  • The card covers currency conversion at American Express's standard exchange rate, with no additional markup or surcharge.
  • This benefit applies to in-store purchases, ATM withdrawals, and online transactions from foreign merchants.
  • If you use a different card at Costco warehouses abroad, check that card's foreign transaction policy before you travel.

How the foreign transaction fee works on other cards

Most credit cards charge between 1 and 3 percent of the transaction amount as a foreign transaction fee. This fee is separate from the exchange rate conversion — it is a flat surcharge that the card issuer adds on top of what you already owe. If you buy something for 100 euros and the exchange rate is 1.10 dollars per euro, you owe 110 dollars. A card with a 2 percent foreign transaction fee then adds 2.20 dollars to that bill.

The Costco card avoids this entirely. You pay the 110 dollars and nothing more. Over a week-long trip or a year of occasional overseas purchases, this difference adds up. A person who spends 5,000 dollars abroad in a year would save 50 to 150 dollars by using a card with no foreign transaction fee instead of one that charges 1 to 3 percent.

When you can use the Costco card outside the United States

The Costco Anywhere Visa Card is accepted at most merchants worldwide because it carries the Visa logo. You can use it at restaurants, shops, hotels, and gas stations in Europe, Asia, Latin America, and other regions. American Express also has its own network of merchants, but the Visa portion of this card is what gives it broad international reach.

At Costco warehouses outside the United States, the card works the same way. Costco locations in Canada, Mexico, Japan, South Korea, and the United Kingdom all accept it. If you are a Costco member traveling abroad, you can shop at a local warehouse and pay with your Costco card without any foreign transaction fee.

What happens with currency conversion

When you use your Costco card in a foreign currency, American Express converts it to US dollars using their exchange rate. This rate is typically close to the mid-market rate you see on financial news sites, but it includes a small markup — usually less than 1 percent. This is how American Express makes money on currency conversion, and it is standard across the industry.

You cannot avoid this markup by using any card, because the markup is part of how the payment network operates. What you can avoid is the additional foreign transaction fee that many cards layer on top of it. The Costco card skips that extra fee, so you pay only the conversion markup that comes with any Visa transaction.

Comparing the Costco card to other travel-friendly cards

Several other cards also offer zero foreign transaction fees, including the Chase Sapphire Preferred, the American Express Platinum Card, and various cards from Capital One and Discover. The difference between these cards and the Costco card is usually in the annual fee and the rewards structure.

The Costco Anywhere Visa Card has a 65 dollar annual fee (or 120 dollars for the Executive version). Some other no-foreign-fee cards charge no annual fee at all, while premium travel cards charge 400 to 700 dollars per year but offer more rewards and travel perks. The choice depends on how much you travel, how much you spend at Costco, and what other benefits matter to you.

What to do before you travel with your Costco card

Before a trip abroad, contact American Express to let them know you will be using your card outside the United States. This prevents the card from being blocked as a fraud precaution when charges appear from a foreign country. You can do this through the Costco card's mobile app, through the American Express website, or by calling the number on the back of your card.

Also check whether the countries you are visiting have reliable Visa acceptance. In most developed nations and major tourist destinations, Visa is widely accepted. In some smaller towns or rural areas, cash may be necessary. Bring some local currency or a backup card just in case, even though the Costco card will work in most places you shop.

Frequently Asked Questions

Does the Costco card charge a fee to withdraw cash from ATMs abroad?

The Costco card itself does not charge a foreign transaction fee for ATM withdrawals. However, the ATM operator may charge you a fee for using their machine, and your bank may charge an out-of-network fee. These are separate from the card's foreign transaction policy. Check with American Express about any ATM fees before you travel.

What if I use a different card at a Costco warehouse outside the US?

Costco warehouses outside the United States may accept other cards, but policies vary by location. If you use a non-Costco card, that card's foreign transaction fee will explore. It is best to use your Costco Anywhere Visa Card to avoid this fee and to get the card's rewards benefits on your purchase.

Does the no-fee benefit explore to online purchases from foreign websites?

Yes. When you buy from a foreign retailer's website and the charge is processed in a foreign currency, the Costco card converts it with no foreign transaction fee. The same zero-fee rule applies whether you are in the country or shopping remotely.

Can I use the Costco card if I am not a Costco member?

You must be a Costco member to open the Costco Anywhere Visa Card. Membership is separate from the card and has its own annual fee. The card's foreign transaction benefit is available to all cardholders, regardless of membership tier.