Bank of America charges foreign transaction fees on most accounts
Bank of America adds a 3% foreign transaction fee to purchases and cash withdrawals made outside the United States on most checking and savings accounts. This fee is added to the transaction amount at the time of purchase or withdrawal, so you pay it immediately — not later on your statement.
The 3% applies whether you swipe a card at a store, withdraw cash from an ATM, or make an online purchase from a foreign merchant. Bank of America also charges a separate $5 out-of-network ATM fee for cash withdrawals at ATMs that do not belong to Bank of America or its partner networks, which stacks on top of the foreign transaction fee.
Some Bank of America accounts and cards do not charge the 3% foreign transaction fee. These exceptions exist, but they are limited and come with specific requirements or higher account tiers.
Key Takeaways
- Bank of America's standard foreign transaction fee is 3% on all purchases and cash withdrawals made outside the United States.
- The Bank of America Visa Infinite card and certain premium accounts waive the 3% foreign transaction fee entirely.
- ATM withdrawals abroad incur both the 3% foreign transaction fee and a $5 out-of-network fee unless you use a Bank of America partner ATM.
- The foreign transaction fee is calculated and charged at the time of the transaction, not added later to your bill.
- Bank of America's exchange rate for foreign transactions includes a markup beyond the mid-market rate, making the true cost higher than the 3% fee alone.
Which Bank of America accounts and cards waive foreign transaction fees
The Bank of America Visa Infinite card does not charge the 3% foreign transaction fee. This is a premium credit card with an annual fee, and the waived foreign transaction fee is one of its travel benefits. If you travel internationally on a regular basis, the annual fee may offset itself through the foreign transaction fee savings alone, depending on how much you spend abroad.
Bank of America's Premium Rewards credit card also waives foreign transaction fees, though it carries its own annual fee. Some of Bank of America's business credit cards waive the fee as well, but the terms vary by card type.
Checking and savings accounts do not waive the 3% foreign transaction fee, regardless of account tier or balance. If you hold a Bank of America checking account, you will pay the 3% fee on all foreign transactions, even if you also hold one of the premium credit cards that waives it.
How the 3% fee is calculated and when you see it
The 3% foreign transaction fee is applied to the transaction amount in the foreign currency before it is converted to US dollars. If you spend 100 euros, Bank of America calculates 3% of 100 euros, adds that to the transaction, and then converts the total to dollars at their exchange rate.
You see the fee on your statement as a separate line item labeled as a foreign transaction fee or international transaction fee. The fee appears within a few days of the transaction, depending on when the merchant's bank processes the payment. Some transactions take longer to settle, so the fee may not show up immediately.
Bank of America also applies an exchange rate markup on top of the 3% fee. The bank does not use the mid-market exchange rate (the rate you see on financial news sites); instead, it uses a rate that includes a markup in the bank's favor. This markup is not disclosed as a separate fee, but it increases the total cost of your foreign transaction beyond the stated 3%.
ATM withdrawals abroad and out-of-network fees
When you withdraw cash from an ATM outside the United States, you pay both the 3% foreign transaction fee and a $5 out-of-network ATM fee. This combination makes cash withdrawals abroad expensive with a Bank of America account.
Bank of America has partnerships with some international ATM networks, primarily in Europe and Asia. If you use an ATM that belongs to one of these partner networks, you may avoid the $5 out-of-network fee, though the 3% foreign transaction fee still applies. The partner networks change over time, so check Bank of America's website or call before you travel to find out which ATMs in your destination are partner ATMs.
Some travelers find it cheaper to withdraw larger amounts of cash less frequently, since each withdrawal triggers both fees. However, carrying large amounts of cash abroad carries its own risks, so balance the fee savings against your comfort level with cash security.
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 accounts. Some online banks and credit unions charge lower fees — typically 1% to 2% — or waive the fee entirely on certain accounts.
If you travel internationally often, comparing foreign transaction fees across banks may save you money. A bank that charges 1% instead of 3% saves you 2 percentage points on every foreign transaction. Over a year of regular travel, this difference adds up.
Credit unions sometimes offer better rates than large banks, and some online banks have no foreign transaction fees at all. However, these banks may have fewer ATM locations abroad or less robust customer service while you are traveling, so weigh the fee savings against convenience and support.
What to do if you are charged a foreign transaction fee you did not expect
If you see a foreign transaction fee on your statement and believe it was charged in error, contact Bank of America's customer service. Explain the transaction and ask whether the fee can be reversed. Bank of America may reverse a single fee as a courtesy, though they are not required to do so.
If you were charged a foreign transaction fee on a transaction that should have been exempt (for example, a transaction made with a Visa Infinite card), provide the card number and transaction details. Bank of America can research the transaction and reverse the fee if it was applied incorrectly.
Keep records of your foreign transactions and the fees charged. If you notice a pattern of incorrect fees, contact Bank of America again and ask for a review of multiple transactions. Document each conversation with the date, time, and name of the representative you spoke with.
Frequently Asked Questions
Do I pay the 3% foreign transaction fee if I use my Bank of America debit card abroad?
Yes. The 3% foreign transaction fee applies to debit card transactions made outside the United States, just as it does to credit card transactions. The fee is charged whether you use a debit card or credit card, unless you hold a premium card that waives the fee.
Can I avoid the foreign transaction fee by converting currency before I travel?
No. The foreign transaction fee is charged by Bank of America when you make a purchase or withdrawal in a foreign currency, regardless of when or how you obtained that currency. Converting dollars to euros before you leave does not prevent the 3% fee from being charged when you spend those euros.
What is Bank of America's exchange rate for foreign transactions?
Bank of America does not publish its exchange rate markup. The rate used for your transaction is typically 1% to 2% higher than the mid-market rate, but the exact markup varies by transaction type and card. You can compare the rate Bank of America used to the mid-market rate on your statement to estimate the markup.
If I have a Bank of America account in another country, do I still pay the 3% fee?
This depends on the account type and the country. Bank of America's international branches and subsidiaries may have different fee structures. Contact the specific branch or office where you hold the account to learn about their foreign transaction fees.
Does the 3% foreign transaction fee apply to online purchases from foreign websites?
Yes. If you purchase something online from a merchant located outside the United States and the transaction is processed in a foreign currency, the 3% foreign transaction fee applies. If the merchant converts the price to US dollars before charging your card, the fee may not apply, depending on how the transaction is coded.