Does the Costco Credit Card Charge Foreign Transaction Fees?

When you use a credit card abroad—whether for purchases, ATM withdrawals, or currency conversion—you may encounter foreign transaction fees. These charges are what many cardholders worry about when traveling internationally. Understanding how Costco's credit card products handle these fees is essential if you travel or make overseas purchases regularly. 💳

What Foreign Transaction Fees Are

A foreign transaction fee is a charge assessed by your card issuer when you use your card outside the United States. It's typically calculated as a percentage of the transaction amount and covers the cost of currency conversion and international payment processing. Some cards charge 1% to 3% per foreign transaction; others charge none at all.

This fee applies to any transaction conducted in a foreign currency—even if you're a U.S. citizen shopping online from a merchant based outside the country.

Costco's Card Options and Foreign Transaction Fees

Costco currently offers two co-branded credit cards (the specific issuer and terms vary by region). The key distinction is that some Costco credit card products carry foreign transaction fees, while others do not. The fee structure depends on which card you hold and which issuer manages it.

Variables that determine whether you pay these fees:

• Which Costco card you carry — different Costco credit card products have different terms
• Where the card is issued — U.S.-issued cards have different policies than international versions
• Your membership tier — Gold Star vs. Executive status doesn't typically affect card fees, but it's worth confirming
• Transaction type — whether you're making a purchase, using an ATM, or conducting a balance transfer

How to Find Out Your Card's Specific Fee Structure

Because card terms change and vary by region, the most reliable way to know whether your Costco card charges foreign transaction fees is to:

1. Check your cardholder agreement — the terms document that came with your card or is available online
2. Call the card issuer's customer service number — listed on the back of your card
3. Log into your online account — most issuers post fee schedules and terms in the account dashboard
4. Ask at your local Costco warehouse — membership services can often confirm basic fee information

What to Consider If You Travel Internationally

If you're deciding whether a Costco credit card fits your travel habits, evaluate:

• How often you travel or make foreign purchases — even a small percentage fee adds up on frequent trips
• Average transaction sizes abroad — larger purchases make foreign transaction fees more noticeable
• Whether you have other cards without these fees — you could use an alternate card for international transactions
• Reward structures — some cards offer rewards that may offset foreign transaction fees for regular travelers
• ATM access and cash withdrawal costs — these are separate from transaction fees and vary widely

The Bigger Picture

Foreign transaction fees are common among store-branded credit cards, though not universal. General-purpose credit cards in the broader market often advertise zero foreign transaction fees as a selling point, which means comparing across card types—not just Costco cards—is worth your time if international spending is part of your financial life.

Your right choice depends entirely on your travel patterns, the rewards you value, and whether you'll use the card frequently enough domestically to justify the membership and card costs regardless of foreign fees.