Most Bank of America cards charge 3% for purchases outside the US

Bank of America charges a 3% foreign transaction fee on most of its credit cards when you use them to buy something outside the United States or in a foreign currency. This fee gets added to your bill on top of the purchase price. If you spend $100 on a meal in London, you pay $103.

The fee applies whether you're traveling, shopping on a foreign website, or buying from a company that processes the transaction in another country. It's not about where you are — it's about where the merchant's bank is located.

Bank of America has one major exception: the Bank of America Premium Rewards card does not charge foreign transaction fees. Every other card in their consumer lineup does.

Key Takeaways

  • Bank of America's standard cards charge 3% on any purchase made outside the US or in a foreign currency, added to your bill automatically.
  • The Bank of America Premium Rewards card waives the 3% foreign transaction fee, making it the only consumer option without this charge.
  • The fee applies to online purchases from foreign merchants and currency conversions, not just in-person travel spending.
  • If you travel frequently or shop internationally, comparing this fee against other banks' cards can save you hundreds of dollars per year.

Which Bank of America cards have the 3% fee

The 3% foreign transaction fee applies to these cards: the Bank of America Cash Rewards, Bank of America Travel Rewards, Bank of America Customized Cash Rewards, and Bank of America Unlimited cards. It also applies to their business credit cards in the same product lines.

If you hold any of these cards and use them abroad, the 3% charge is automatic. You don't opt in — it simply appears on your statement. There's no way to avoid it on these cards except by using a different payment method.

How the 3% fee actually works on your bill

The foreign transaction fee is calculated on the purchase amount in the local currency, then converted to US dollars at the exchange rate Bank of America uses on that day. The 3% is added on top of that converted amount.

Here's a real example: you buy something for 50 euros. Bank of America converts that to roughly $54 USD using their exchange rate. Then they add 3% of $54, which is $1.62. Your total charge is $55.62. The fee shows up on your statement as a separate line item labeled "foreign transaction fee" or similar.

This happens for every single transaction outside the US, even small ones. A coffee purchase for 3 euros will still trigger the fee. Many travelers don't notice until they review their statement weeks later.

The Bank of America Premium Rewards card exception

The Bank of America Premium Rewards card is the only consumer card from Bank of America that does not charge a foreign transaction fee. If you travel internationally or make frequent purchases from foreign merchants, this card eliminates that 3% cost entirely.

The Premium Rewards card does charge an annual fee (the amount varies and changes periodically, so check Bank of America's current terms). You need to decide whether the annual fee is worth it compared to the foreign transaction fees you'd pay on another card. If you spend $5,000 or more abroad per year, the Premium Rewards card often makes financial sense.

How Bank of America's fees compare to other banks

Most major US banks charge 3% for foreign transactions, so Bank of America is not unusual in this regard. Visa and Mastercard (the payment networks) also add their own small fee on top, typically around 1%, which Bank of America passes through to you.

Some banks offer cards with no foreign transaction fee at all, even without an annual fee. Capital One, Charles Schwab, and a few others have cards that waive this fee entirely. If international spending is important to you, comparing cards across different banks can reveal options that save you money.

A small number of premium travel cards from other banks charge no foreign transaction fee and offer travel benefits, but they typically come with higher annual fees than the Bank of America Premium Rewards card.

What counts as a foreign transaction

A foreign transaction is any purchase where the merchant's bank is outside the United States, regardless of where you physically are when you make the purchase. You can be sitting in your home in Ohio and buy something from a UK website — that's a foreign transaction and you'll pay the 3% fee.

Currency conversion also triggers the fee. If a US merchant converts your purchase to another currency (sometimes called dynamic currency conversion), Bank of America charges the 3% fee on that transaction. This sometimes happens at airports, hotels, or tourist attractions that offer to charge you in US dollars instead of the local currency.

ATM withdrawals outside the US are different — they usually have a separate ATM fee, not the foreign transaction fee. Check your card's terms for ATM fees specifically.

Strategies to reduce foreign transaction costs

If you use a Bank of America card that charges the 3% fee, you can reduce costs by consolidating purchases. Instead of buying small items throughout your trip, make fewer, larger purchases. The 3% applies to each transaction, so fewer transactions means fewer fees.

Another option is to withdraw cash from an ATM once and use that for small purchases, though you'll pay an ATM fee instead. Compare the ATM fee (usually $2 to $5 per withdrawal) against the 3% you'd pay on those purchases to see which costs less.

If you travel frequently, switching to a card with no foreign transaction fee — either the Bank of America Premium Rewards card or a card from another bank — is the most straightforward way to eliminate this cost entirely.

Frequently Asked Questions

Do I pay the 3% fee if I use my Bank of America card at an ATM abroad?

No. ATM withdrawals have a separate ATM fee (typically $2 to $5), not the foreign transaction fee. However, your bank may also charge a fee for using an out-of-network ATM, so check your account terms. The 3% foreign transaction fee applies only to purchases and currency conversions, not cash withdrawals.

Will I be charged the fee if I buy from a US company's website while traveling?

It depends on where the merchant's bank processes the transaction. If the US company's payment processor is in the US, you won't pay the fee. If it routes through a foreign bank, you will. You usually won't know until the charge appears on your statement. When in doubt, contact the merchant before purchasing.

Can I dispute the foreign transaction fee on my statement?

No. The fee is part of Bank of America's standard terms for those cards. It's not an error — it's a charge they're allowed to make. Your only recourse is to use a different card or payment method for future foreign transactions.

Does the Premium Rewards card have any other fees I should know about?

Yes, it has an annual fee. The amount changes, so visit Bank of America's website or call to confirm the current fee. You'll also want to review what rewards and benefits come with the card to decide if the annual fee and waived foreign transaction fee make it worth switching from your current card.

What if I'm a Bank of America business customer — do business cards have different foreign transaction fees?

Bank of America's business cards follow the same pattern: most charge 3% for foreign transactions, with limited exceptions. If you use a business card internationally, check your specific card's terms or contact Bank of America directly, as business card terms can differ from consumer cards.