What is a foreign transaction fee?

A foreign transaction fee is a fee charged when a credit card is used to make purchases in a foreign country or when a purchase is made in a U.S. currency but the merchant is located in a foreign country. This fee is typically a percentage of the purchase amount, and it can range from 1-3% of the purchase with some credit card companies charging slightly higher rates. In Wisconsin, the maximum amount a credit card issuer can charge for a foreign transaction fee is 2%. This fee is included in the “default terms” of your credit card agreement, which you would have agreed to when you first applied for the card. Additionally, you can be charged a separate fee from the merchant, typically called a currency exchange fee, if you are not transacting in the local currency. It is important to review your credit card agreement before traveling outside of the United States to ensure you understand your financial obligations.

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What is a foreign transaction fee?

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