The Costco Anywhere Visa Card does not charge foreign transaction fees when you use it outside the United States
The Costco Anywhere Visa Card, issued by Citi, has no foreign transaction fee. This means you pay the same price whether you swipe it at a store in Seattle or a café in Paris. The card covers both purchases and cash withdrawals at ATMs abroad.
This is one of the card's genuine strengths if you travel regularly or live part of the year outside the U.S. Many travel-focused cards charge 3% on every foreign purchase; Costco's card charges nothing. That said, the card's other benefits — cash back, warehouse discounts — are built around Costco shopping, so it works best for people who are both frequent Costco members and frequent travelers.
Key Takeaways
- The Costco Anywhere Visa Card charges no foreign transaction fee on purchases or ATM withdrawals anywhere outside the United States.
- Your bank or the ATM operator may still charge their own fees for cash withdrawals, even though Citi does not.
- The card earns 4% cash back on gas (including Costco gas) and 3% on restaurants and travel, which can offset some travel costs.
- You must be a Costco member to hold the card, and the annual fee is $65 (or $130 for the Executive version).
How foreign transaction fees work on credit cards
When you use a credit card outside the U.S., the card network (Visa, Mastercard, American Express) converts the foreign currency to dollars. During that conversion, most card issuers add a fee — typically 1% to 3% — on top of the exchange rate they charge you. This is the foreign transaction fee, and it hits your bill silently as part of the total charge.
Some cards waive this fee entirely. Others charge it on purchases but not cash withdrawals, or vice versa. The Costco card waives it on both, which is uncommon. Even so, you may still pay fees from the ATM operator or your bank if you withdraw cash abroad — those are separate charges that the card issuer does not control.
What the Costco card does charge you
The Costco Anywhere Visa Card has an annual fee of $65 for the standard version and $130 for the Executive version. There is no foreign transaction fee, but there are other costs to know about.
If you use the card outside Costco, you earn 1% cash back on most purchases. At Costco warehouses and Costco.com, you earn 2% cash back. At gas stations (including Costco gas) you earn 4%, and at restaurants and travel you earn 3%. The card does not charge late fees, over-limit fees, or annual percentage rate (APR) penalties beyond the standard interest rate on carried balances — but those are standard across most cards.
When the Costco card makes sense for travel
The card's lack of foreign transaction fees is most valuable if you travel frequently and spend enough at Costco to justify the annual fee. If you spend $6,500 or more per year at Costco, the 2% cash back alone covers the $65 annual fee. Add in the 4% on gas and 3% on restaurants and travel, and the card can pay for itself quickly for regular travelers who also shop at Costco.
If you travel once or twice a year and rarely shop at Costco, a dedicated travel card with no foreign transaction fee and no annual fee might serve you better. Cards like the Chase Sapphire Preferred or the American Express Gold charge annual fees but offer more travel perks (lounge access, travel insurance, higher earning rates). Cards like the Citi Double Cash have no annual fee and no foreign transaction fee, though they earn only 2% cash back everywhere.
How to avoid other costs when using the card abroad
Even though Citi charges no foreign transaction fee, you can still pay unexpected costs when traveling. ATM operators in other countries often charge a fee to withdraw cash — sometimes $3 to $5 per transaction. Your own bank may add a fee on top of that. Before you travel, call Citi and ask whether they reimburse ATM fees abroad; some card issuers do, though Costco's does not.
When you make a purchase, always choose to be charged in the local currency, not U.S. dollars. If a store or ATM offers to convert the charge to dollars for you on the spot (called "dynamic currency conversion"), decline. The conversion rate they offer is almost always worse than what your card network will charge, and you lose the benefit of Citi's exchange rate.
Comparing the Costco card to other no-fee travel cards
The Costco card's main competitor for no-fee foreign transactions is the Citi Double Cash, which charges no foreign transaction fee and has no annual fee. The Double Cash earns 2% cash back on all purchases, which is lower than the Costco card's 3% to 4% on travel and restaurants, but you do not need a warehouse membership to use it.
Premium travel cards like the Chase Sapphire Preferred ($95 annual fee) and American Express Platinum ($695 annual fee) also charge no foreign transaction fees and offer travel insurance, lounge access, and concierge services. These cards are worth the fee only if you travel frequently and use those perks. For casual travelers who want to avoid foreign transaction fees without paying an annual fee, the Citi Double Cash is the simpler choice.
| Card | Annual Fee | Foreign Transaction Fee | Cash Back on Travel | Membership Required |
|---|---|---|---|---|
| Costco Anywhere Visa | $65 | None | 3% restaurants, 4% gas | Yes, Costco membership |
| Citi Double Cash | None | None | 2% all purchases | No |
| Chase Sapphire Preferred | $95 | None | 3x points on travel | No |
Frequently Asked Questions
Will I pay fees if I use the Costco card at a Costco warehouse outside the U.S.?
No. Citi charges no foreign transaction fee at any merchant, including Costco warehouses abroad. You will earn 2% cash back on the purchase. However, if you use a Costco card issued in another country, that card's issuer may charge a foreign transaction fee when you use it in the U.S.
Does the card cover currency conversion fees at the airport?
The card itself does not charge a conversion fee, but airport currency exchanges charge their own fees — those are separate from the card issuer. Avoid exchanging cash at the airport. Instead, use the Costco card to withdraw cash from an ATM abroad, where the exchange rate is usually better, even after ATM fees.
What happens if I dispute a foreign charge?
Citi's dispute process is the same for foreign and domestic charges. You have 60 days from the statement date to report the charge as fraudulent or incorrect. Call the number on the back of your card to start a dispute. The card does not charge extra for disputing foreign transactions.
Can I use the Costco card if I do not have a Costco membership?
No. You must hold an active Costco membership to open or use the Costco Anywhere Visa Card. If your membership lapses, you can no longer use the card, though Citi will not close the account immediately. Renew your membership to restore card access.