Bank of America charges foreign transaction fees on most accounts and cards

Bank of America adds a foreign transaction fee — a percentage charge on purchases and cash withdrawals made outside the United States — to most of its checking accounts, savings accounts, and credit cards. The fee is typically 3% of the transaction amount. This means if you spend $100 abroad, you pay an extra $3.

The fee applies whether you swipe a debit card, use an ATM, or make a purchase online from a foreign merchant. It also applies to currency conversion — the process of changing dollars into another country's money. Bank of America sets its own exchange rate, which is usually higher than the actual market rate, so you pay more than the official conversion price.

Not every Bank of America product charges this fee, but most do. The exceptions are limited and come with their own conditions.

Key Takeaways

  • Bank of America's standard foreign transaction fee is 3% on debit and credit card purchases made outside the United States.
  • The fee applies to ATM withdrawals, online purchases from foreign merchants, and currency conversions, not just in-person spending.
  • Some Bank of America credit cards marketed to frequent travelers waive the foreign transaction fee, though they may have annual fees or other costs.
  • The fee is charged in addition to Bank of America's exchange rate markup, so the total cost of converting money abroad is higher than the stated 3%.
  • Checking and savings accounts do not waive foreign transaction fees unless you hold a premium account tier with higher balance requirements.

Which Bank of America accounts and cards charge the fee

Bank of America's standard checking accounts — including the Basic Checking and Advantage Checking products — charge the 3% foreign transaction fee on debit card use abroad. The same fee applies to their standard savings accounts and most credit cards issued under the Bank of America brand.

The fee does not appear on every transaction. It only triggers when the merchant or ATM is located outside the United States, or when the transaction is processed through a foreign bank or payment network.

Premium account tiers, such as Bank of America Preferred Rewards accounts at higher membership levels, may waive the foreign transaction fee on debit card purchases. However, these accounts usually require you to maintain a minimum balance or have a certain amount of direct deposits flowing in each month. The balance requirement varies and can be several thousand dollars.

Credit cards that do not charge the foreign transaction fee

Bank of America issues a small number of credit cards that waive the 3% foreign transaction fee. These cards are marketed toward people who travel internationally or do business abroad. The most commonly available option is the Bank of America Travel Rewards card, which earns cash back on all purchases and does not charge foreign transaction fees.

Other Bank of America cards that may waive the fee include co-branded travel cards and premium cards, though the specific products and their terms change over time. You can check the current terms on Bank of America's website or call their customer service line to confirm which cards in their lineup waive the fee.

Cards that waive foreign transaction fees often come with an annual fee — typically $95 to $450 — so the savings on the foreign transaction fee may not outweigh the cost of holding the card unless you travel frequently or spend a large amount abroad each year.

How the fee is calculated and when it appears on your statement

The 3% foreign transaction fee is calculated on the transaction amount after Bank of America converts it to U.S. dollars. So if you spend 100 euros and Bank of America's exchange rate converts that to $110, the fee is 3% of $110, or $3.30.

The fee appears as a separate line item on your statement, usually labeled as "Foreign Transaction Fee" or "International Transaction Fee." It may take one to three business days to appear after the purchase posts, depending on how the merchant processes the transaction.

ATM withdrawals abroad incur the fee in addition to any ATM surcharge the foreign bank may charge. So if you withdraw $200 from an ATM in another country, you may pay Bank of America's 3% fee plus a separate surcharge from the ATM operator — sometimes $3 to $5 per withdrawal.

Alternatives to paying Bank of America's foreign transaction fees

If you travel abroad regularly or live outside the United States, you have options beyond Bank of America's standard products. Some credit card issuers — including American Express, Chase, and Citi — offer cards with no foreign transaction fees and no annual fee, which may be cheaper than Bank of America's Travel Rewards card.

You can also open a checking or savings account with a bank that specializes in international customers or offers no foreign transaction fees on standard accounts. Some online banks and credit unions do not charge the fee at all, though they may have other limitations, such as fewer ATM locations abroad or longer processing times for international transfers.

Another option is to exchange money before you travel, either at your bank or at a currency exchange service. This locks in a rate and avoids the fee on individual transactions, though the exchange rate you receive may not be better than what Bank of America offers.

What happens if you use Bank of America services abroad

Bank of America has partnerships with banks in many countries, which means you can sometimes use their ATMs without paying a surcharge from the foreign bank. However, Bank of America's own 3% foreign transaction fee still applies to the withdrawal.

If you use a Bank of America ATM while traveling abroad, the fee structure is the same: 3% of the amount withdrawn, plus any currency conversion markup. The partnership does not waive Bank of America's fee; it only waives the foreign bank's surcharge.

Bank of America also offers wire transfer services to send money internationally, but these come with separate fees — typically $15 to $45 per transfer, depending on the destination country and the amount sent. Wire transfer fees are different from foreign transaction fees and are charged regardless of whether your account normally charges foreign transaction fees.

How to minimize foreign transaction costs with Bank of America

If you plan to use Bank of America abroad, you can reduce costs by consolidating purchases into fewer, larger transactions rather than making many small purchases. Each transaction incurs the 3% fee, so one $500 purchase costs $15 in fees, while five $100 purchases cost $15 total — the same amount. However, making one large withdrawal at an ATM may expose you to more risk if the cash is lost or stolen.

Using a Bank of America credit card that waives foreign transaction fees is the most direct way to avoid the charge, provided the annual fee is worth the savings. If you travel for two weeks and spend $2,000 abroad, the 3% fee would cost $60 — so a card with a $95 annual fee breaks even only if you travel that much every year or more.

Paying with a credit card rather than withdrawing cash at an ATM also avoids the ATM surcharge from the foreign bank, though Bank of America's foreign transaction fee still applies to the card purchase.

Frequently Asked Questions

Does Bank of America waive foreign transaction fees for military members or government employees?

Bank of America does not have a blanket waiver for military members or federal employees. However, some military-specific credit cards and accounts offered through partnerships may waive the fee. Contact Bank of America directly or check with your employer's benefits office to see if you have access to a special product.

If I'm traveling for work, can my employer reimburse me for the foreign transaction fee?

That depends on your employer's travel policy, not on Bank of America. Some employers reimburse all travel expenses including fees; others do not. Check your company's travel guidelines or ask your finance department before you travel.

Do Bank of America's online transfers to other countries charge the foreign transaction fee?

No. Online international wire transfers are charged a separate wire transfer fee, not the foreign transaction fee. The wire fee is typically $15 to $45 and is charged once per transfer, regardless of the amount. The foreign transaction fee applies only to card purchases and ATM withdrawals.

What if I dispute a foreign transaction fee on my statement?

You can contact Bank of America's customer service and ask them to review the charge. If the transaction was made with a card that should have waived the fee, or if you believe the fee was applied in error, Bank of America may reverse it. However, if the fee was applied correctly under your account's terms, they will not remove it.

Does the foreign transaction fee explore if I use my Bank of America card to pay a foreign website in U.S. dollars?

Yes. If the merchant is located outside the United States or the transaction is processed through a foreign payment network, the foreign transaction fee applies even if the price is shown in dollars. The fee is based on the location of the merchant or processor, not the currency displayed.