Bank of America charges foreign transaction fees on most debit cards

Bank of America debit cards carry a 3% foreign transaction fee on purchases made outside the United States and on ATM withdrawals in foreign currencies. This fee applies to the vast majority of their debit card products, including the standard Bank of America debit card that comes with a checking account.

The fee is calculated on the transaction amount in US dollars after Bank of America converts the foreign currency. So if you withdraw 100 euros and the conversion rate is 1.10 USD per euro, the transaction is treated as $110, and you pay $3.30 in fees on top of the conversion itself.

There is one exception: the Bank of America Travel Rewards debit card does not charge a foreign transaction fee. However, this card is not widely available and requires meeting specific criteria through Bank of America's private banking division.

Key Takeaways

  • Bank of America's standard debit card charges 3% on all foreign purchases and ATM withdrawals made outside the United States.
  • The fee is added to your account after the currency conversion is complete, so you see the total charge when the transaction posts.
  • ATM withdrawals abroad incur the 3% fee plus any ATM operator fees charged by the foreign bank.
  • The Travel Rewards debit card has no foreign transaction fee, but it is only available through Bank of America's private banking program.
  • Using a credit card instead of a debit card may offer better terms, since some Bank of America credit cards have no foreign transaction fees.

How the 3% fee is calculated and when it appears

The foreign transaction fee is not a separate line item on your statement. Instead, Bank of America adds it to the transaction amount before posting the charge to your account. If you buy something for 50 euros, Bank of America converts that to dollars at their exchange rate, then adds 3% to the converted amount.

The timing matters: the fee does not post when ready. When you swipe your card abroad, the transaction is pending. Bank of America typically settles the transaction within one to three business days, and that is when the conversion and fee are calculated and the full amount is deducted from your account.

You can see the breakdown in your online banking portal or mobile app once the transaction settles. The description will show the merchant name and location, the original foreign amount, the converted US dollar amount, and the total charge including the fee.

ATM withdrawals carry the same 3% fee plus additional costs

Withdrawing cash from an ATM outside the United States triggers the 3% foreign transaction fee on top of any fee the ATM operator charges. Many foreign ATMs charge their own fee—often 1% to 3% of the amount withdrawn—so your total cost can reach 4% to 6% or higher.

Bank of America also charges a $5 out-of-network ATM fee for withdrawals at ATMs that are not part of the Bank of America, Allpoint, or MoneyPass networks. If you use an ATM abroad that is not in one of these networks, you will pay the $5 fee plus the 3% foreign transaction fee plus whatever the foreign ATM operator charges.

Some countries have ATM networks that Bank of America participates in through Allpoint or MoneyPass. Before traveling, check Bank of America's ATM locator on their website to see which networks operate in your destination country. Using a participating ATM eliminates the $5 out-of-network fee but does not eliminate the 3% foreign transaction fee or the foreign operator's fee.

Comparing Bank of America debit cards to other options

Bank of America offers several debit card products, and the foreign transaction fee applies to all of them except the Travel Rewards card. The standard debit card, the Advantage SafePass debit card, and the Advantage Plus debit card all charge 3% on foreign transactions.

If you hold a Bank of America credit card, check whether it has a foreign transaction fee. Some Bank of America credit cards, including certain travel rewards cards, charge no foreign transaction fee. Using a credit card abroad instead of a debit card may cost you less, though you will also pay interest if you carry a balance.

Other banks offer debit cards with no foreign transaction fees. Charles Schwab, for example, offers a debit card that reimburses all ATM fees worldwide and charges no foreign transaction fee. Wise (formerly TransferWise) offers a debit card tied to a multi-currency account that avoids the foreign transaction fee entirely by holding money in the foreign currency itself.

What happens when you use your debit card for online purchases from abroad

If you are traveling and make an online purchase from a merchant outside the United States, the 3% foreign transaction fee still applies. The merchant's location determines whether the fee is charged, not where you are physically located when you make the purchase.

Purchases from US-based merchants do not incur the foreign transaction fee, even if you are abroad when you make them. So if you buy something from Amazon.com while traveling in Europe, you will not pay the 3% fee. But if you buy from Amazon.co.uk or a European retailer, you will.

Protecting yourself from unexpected charges

Before traveling, contact Bank of America to let them know you will be using your card abroad. This does not prevent the foreign transaction fee, but it prevents your card from being blocked as a fraud precaution when transactions appear in a new country.

Keep track of your spending while abroad by checking your account regularly through the mobile app or online banking. Transactions can take a few days to settle, so you may not see the final amount with the fee applied when ready. Once the transaction settles, you can verify that the conversion rate and fee were calculated correctly.

If you see a transaction you did not make, report it to Bank of America when ready. Fraudulent transactions are handled separately from legitimate foreign transactions, and Bank of America will investigate and reverse unauthorized charges.

Frequently Asked Questions

Can I avoid the 3% foreign transaction fee by using a different Bank of America debit card?

Only the Travel Rewards debit card has no foreign transaction fee, and it is available only through Bank of America's private banking program. All other Bank of America debit cards charge 3%. If you do not have access to the Travel Rewards card, switching to a different bank's debit card or using a credit card with no foreign transaction fee is your best option.

Does Bank of America charge the foreign transaction fee on currency exchanges at their branches?

No. If you exchange currency at a Bank of America branch before traveling, you pay their exchange rate and any applicable service fee, but not the 3% foreign transaction fee. The 3% fee applies only to debit card transactions made outside the United States.

What is Bank of America's exchange rate for foreign transactions?

Bank of America uses the Visa or Mastercard exchange rate (depending on which network your debit card uses) on the day the transaction settles, not the rate on the day you made the purchase. The rate varies daily and is set by the card network, not by Bank of America. You can see the exact rate applied to each transaction in your account details once it settles.

If I dispute a foreign transaction, will the 3% fee be refunded?

If you dispute a transaction and Bank of America determines it was fraudulent or unauthorized, the entire charge including the fee is reversed. If you dispute a transaction you made but claim it was not what you expected, the outcome depends on the merchant and the reason for the dispute. The fee itself is not typically refunded unless the underlying transaction is reversed.

Do I pay the foreign transaction fee if I use my Bank of America debit card in US territories like Puerto Rico or the US Virgin Islands?

No. US territories use the US dollar as currency, so transactions there are treated as domestic transactions. The 3% foreign transaction fee applies only to transactions in foreign currencies outside the United States and its territories.