Bank of America charges foreign transaction fees on most debit and credit cards

Bank of America applies a foreign transaction fee of 3% on most purchases made outside the United States, whether you use a debit card, credit card, or ATM. This fee is added to the transaction amount at the time of purchase and appears on your statement as a separate line item labeled "foreign transaction fee" or similar.

The 3% applies to the converted amount in US dollars. So if you spend 100 euros and the conversion rate is 1.10, you pay $110 plus $3.30 in fees. The fee is charged by Bank of America itself, separate from any fees your foreign bank or merchant may charge.

Some Bank of America accounts and cards have different fee structures or exemptions. Checking accounts, savings accounts, and credit cards each have their own rules, and a few premium products waive the fee entirely. The card or account type you hold determines whether you pay the full 3%, a reduced amount, or nothing.

Key Takeaways

  • Bank of America charges 3% on foreign transactions for most debit cards, credit cards, and ATM withdrawals made outside the US.
  • The fee is calculated on the converted US dollar amount and appears as a separate charge on your statement.
  • Bank of America Platinum Plus checking and some premium credit cards waive the foreign transaction fee entirely.
  • ATM withdrawals abroad incur both the 3% foreign transaction fee and an additional out-of-network ATM fee if the ATM is not part of the Global ATM Alliance.
  • The fee is charged by Bank of America, not by the foreign bank or merchant, though you may face additional charges from them as well.

Which Bank of America accounts and cards waive the fee

Bank of America Platinum Plus checking accounts do not charge the 3% foreign transaction fee on debit card purchases or ATM withdrawals abroad. If you hold this account type and use your debit card internationally, you avoid the fee entirely. You can check your account type by logging into Online Banking or calling 1-800-432-1000.

Bank of America also offers the Bank of America Premium Rewards American Express card, which waives foreign transaction fees for cardholders. This is a credit card product, separate from your checking or savings account. If you carry this card, you can use it abroad without the 3% charge.

Standard checking accounts (like Bank of America Advantage Checking) and most credit cards do charge the 3% fee. If you do not have Platinum Plus or the Premium Rewards card, assume the fee applies to your transactions abroad.

How the fee is calculated and when it appears

The foreign transaction fee is calculated in two steps. First, the merchant's currency is converted to US dollars using the exchange rate Bank of America applies on the day of processing (not the day of purchase). Second, 3% of that converted amount is added as a separate fee.

The fee appears on your statement within one to three business days of the transaction, depending on how quickly the merchant submits the charge. You will see two line items: the purchase amount in US dollars and a separate line for the foreign transaction fee. Both are deducted from your account or added to your credit card balance.

If you make multiple purchases abroad in the same day, each one incurs its own 3% fee. There is no daily cap or limit on the total fees you can be charged.

ATM withdrawals and additional fees

When you withdraw cash from an ATM abroad, Bank of America charges the 3% foreign transaction fee on the amount you withdraw. On top of that, you may face an out-of-network ATM fee if the machine is not part of the Global ATM Alliance.

Bank of America participates in the Global ATM Alliance, which includes ATMs in over 200 countries. If you use an ATM that displays the Global ATM Alliance logo, you avoid the out-of-network fee and pay only the 3% foreign transaction fee. If you use an ATM outside the alliance, you typically pay an additional $2 to $5 per withdrawal, depending on the foreign bank operating the machine.

To find a Global ATM Alliance machine before you travel, use the ATM locator on the Bank of America website or ask your bank for a list of partner banks in your destination country. Platinum Plus checking accounts do not charge the out-of-network fee at Global ATM Alliance machines, but they still incur the 3% foreign transaction fee unless you hold Platinum Plus.

How Bank of America's fees compare to other banks

Bank of America's 3% foreign transaction fee is standard among large US banks. Wells Fargo, Chase, and Citibank all charge 3% on most consumer debit and credit cards. Some online banks and credit unions charge lower fees—typically 1% to 2%—or waive the fee entirely, but these institutions may have other trade-offs like fewer ATM locations or higher account minimums.

If you travel frequently or spend significant amounts abroad, comparing foreign transaction fees across banks may save you money. A card with no foreign transaction fee from a smaller bank or online institution could cost less over time than Bank of America's 3%, even if you lose access to Bank of America's branch network.

Currency conversion rates also vary by bank and card issuer. Bank of America uses its own exchange rate, which may be slightly higher or lower than the mid-market rate on any given day. This rate difference is separate from the foreign transaction fee and affects the total cost of your purchase.

What you can do to reduce foreign transaction costs

If you hold a standard Bank of America account and cannot switch to Platinum Plus, use your debit card for purchases rather than ATM withdrawals when possible. Both incur the 3% fee, but a debit card purchase avoids the additional out-of-network ATM fee if you use a non-alliance machine.

Exchange cash before you travel if you are visiting a country where you can do so without a large markup. Exchanging at your home bank or a currency exchange service before departure may cost less than the 3% fee on multiple small purchases, depending on the exchange rates and fees those services charge.

If you travel to the same country regularly, research whether Bank of America has a partner bank there. Some partner banks offer reduced fees or fee waivers for Bank of America customers, though these arrangements vary by location and are not widely advertised.

Frequently Asked Questions

Does Bank of America charge foreign transaction fees on online purchases from foreign websites?

Yes. If a merchant is located outside the US and processes the transaction in a foreign currency, Bank of America charges the 3% foreign transaction fee. The fee applies even if you are physically in the US at the time of purchase. Online retailers based in the US do not trigger the fee, even if they ship internationally.

Can I dispute a foreign transaction fee if I think the exchange rate was unfair?

Bank of America's exchange rates are set by the bank and are not negotiable. You cannot dispute the fee based on the rate being unfavorable. You can dispute a transaction if it was unauthorized or if the amount charged does not match what you agreed to pay, but the fee itself is a standard charge for using your card abroad.

Do I pay the foreign transaction fee if I use my Bank of America card at a US chain store while traveling abroad?

It depends on where the transaction is processed. If the store processes the transaction through a US merchant account and charges you in US dollars, no fee applies. If the store processes it locally and converts to US dollars, the 3% fee applies. Ask the cashier which currency the transaction will be processed in before you pay.

What happens if I use a Bank of America ATM while traveling abroad?

Bank of America ATMs abroad are treated the same as any other ATM. You pay the 3% foreign transaction fee on the amount withdrawn. If the ATM is part of the Global ATM Alliance, you do not pay an additional out-of-network fee. Check the ATM locator before you travel to find Bank of America machines in your destination.