Bank of America charges foreign transaction fees on most accounts, but the rate and what triggers it depends on your account type and card

Bank of America's standard foreign transaction fee is 3% of the transaction amount when you use a debit card or credit card outside the United States or in a foreign currency. This applies to purchases, ATM withdrawals, and balance transfers. The fee is added to your statement after the transaction posts.

Some Bank of America accounts and cards have no foreign transaction fee, but these are limited. The Bank of America Premium Rewards American Express card, for example, waives the 3% fee entirely. A few business accounts and premium checking products also exclude the fee, though these come with other requirements like minimum balances or monthly fees.

The 3% fee is separate from any currency conversion markup your bank applies. When you spend in a foreign currency, Bank of America converts it to US dollars using their exchange rate, which typically includes a markup of 1% to 2% above the mid-market rate. You pay both the conversion markup and the 3% foreign transaction fee on top of that.

Key Takeaways

  • Bank of America charges 3% on debit and credit card transactions made outside the US or in foreign currency, applied after the transaction posts to your account.
  • The 3% fee is separate from currency conversion markup, so you pay both when spending in a foreign currency.
  • ATM withdrawals abroad incur the 3% foreign transaction fee plus a $5 out-of-network fee if the ATM is not part of Bank of America's network.
  • The Bank of America Premium Rewards American Express card waives the 3% foreign transaction fee, though it carries an annual fee.
  • Wire transfers sent to accounts outside the US typically cost $15 to $45 depending on whether the transfer is domestic or international.

How the 3% fee appears on your statement

The foreign transaction fee does not appear as a separate line item on most statements. Instead, Bank of America adds it directly to the transaction amount. If you spend €100 in Europe and the exchange rate is 1.10 USD per euro, you would see a charge of approximately $113.30 on your statement: $110 for the converted amount plus $3.30 (3% of $110) as the foreign transaction fee.

On your online banking portal, you may see the original transaction amount and the fee broken out separately in the transaction details, depending on which account type you have. Checking your transaction history online usually shows more detail than your paper statement.

ATM withdrawals and the stacked fee structure

Withdrawing cash from an ATM abroad costs more than a purchase because you face multiple fees at once. Bank of America charges the 3% foreign transaction fee on the amount you withdraw. If the ATM is not part of Bank of America's network, you also pay a $5 out-of-network fee. The ATM operator in the foreign country may charge an additional fee as well, which appears separately on your statement.

Example: You withdraw 200 euros from an ATM in Spain that is not part of Bank of America's network. At an exchange rate of 1.10, that is $220. Bank of America charges $6.60 (3% fee) plus $5 (out-of-network fee), for a total of $231.60 before any fee the Spanish ATM operator charges. Using a Bank of America ATM abroad (where available) eliminates the $5 out-of-network fee but not the 3% foreign transaction fee.

Wire transfers to international accounts

Sending money to an account outside the United States through Bank of America costs $15 for a domestic wire sent to a foreign account and $45 for an international wire sent directly to a bank outside the US. These are flat fees, not percentages, and they are separate from any foreign transaction fee. The receiving bank may also charge a fee to accept the wire, which comes out of the amount the recipient receives.

Bank of America does not charge a fee to receive an incoming international wire, though the sending bank in the other country may have charged to send it. If you are receiving money from abroad, ask the sender to confirm the total cost before they initiate the transfer, because fees can vary significantly by country and sending bank.

Accounts and cards that waive the foreign transaction fee

The Bank of America Premium Rewards American Express card is the primary consumer product that waives the 3% foreign transaction fee. It carries a $95 annual fee and offers cash back on purchases, which may offset the cost for frequent international travelers. You must explore and be approved for this card separately from your checking account.

Some Bank of America business accounts and wealth management accounts may also waive the foreign transaction fee, but these typically require minimum balances of $100,000 or more and come with other conditions. Contact Bank of America directly to confirm whether a specific business or premium account includes this benefit.

Bank of America does not offer a checking account without a foreign transaction fee at the standard consumer level. If avoiding the 3% fee is a priority, you would need to either use the Premium Rewards card for purchases or consider a different bank that offers no-fee international accounts.

Currency conversion and the exchange rate you receive

When you spend in a foreign currency, Bank of America converts the amount to US dollars using their own exchange rate, not the mid-market rate you see quoted online. Their rate typically includes a 1% to 2% markup above the mid-market rate, meaning you receive a less favorable exchange rate than the real-time market rate. This markup is in addition to the 3% foreign transaction fee.

Example: The mid-market rate for euros is 1.10 USD per euro. Bank of America's rate might be 1.08 or 1.09 USD per euro, depending on the day and the currency. You lose money on the conversion spread before the 3% fee is even applied. For large transactions or frequent international spending, this difference adds up significantly.

Frequently Asked Questions

Does Bank of America charge foreign transaction fees on credit cards?

Yes, Bank of America charges 3% on most credit cards, including their standard Visa and Mastercard products. The exception is the Bank of America Premium Rewards American Express card, which waives the fee. Check your specific card's terms to confirm, as some co-branded cards may have different policies.

Can I avoid the foreign transaction fee by using a Bank of America ATM abroad?

Using a Bank of America ATM abroad eliminates the $5 out-of-network fee but not the 3% foreign transaction fee. You still pay the 3% fee on the amount you withdraw. Bank of America ATMs are available in some countries through partner networks, but availability is limited outside major cities.

What is the difference between the foreign transaction fee and the currency conversion markup?

The foreign transaction fee is a flat 3% charge on the transaction amount. The currency conversion markup is the difference between Bank of America's exchange rate and the mid-market rate, typically 1% to 2%. You pay both when you spend in a foreign currency, so the total cost is roughly 4% to 5% above the mid-market rate.

Do I pay the foreign transaction fee if I use my Bank of America card in Canada or Mexico?

Yes, the 3% foreign transaction fee applies to transactions in Canada and Mexico, even though they are in North America. The fee applies to any transaction outside the United States or in a foreign currency, regardless of the country.

How long does it take for the foreign transaction fee to appear on my statement?

The foreign transaction fee is calculated and added when the transaction posts to your account, which typically happens within one to three business days of the purchase. You will see the total amount including the fee on your statement once the transaction settles.