Guide

Foreign transaction fees explained

A foreign transaction fee is a surcharge on a card purchase made abroad or with a foreign merchant. Capital One, on 12 March 2026, says these fees are “generally 1%-3% of the transaction amount”, and an example in the CFPB’s rule adds up to 3 percentage points.

Updated

What it is

Capital One describes a foreign transaction fee as a surcharge for a purchase made with a credit card “outside the U.S. or from a non-U.S. company”, and says it “might also apply to a debit card or prepaid travel card transaction”.

The CFPB’s rule for credit cards counts fees on purchases made in a foreign currency, in US dollars outside the US, or with a foreign merchant, such as through its website.

Who can charge it

Under the CFPB’s rule the fee can come from the card issuer, and from a third party that performs the conversion, such as the card network or the issuer’s corporate parent.

Its example: the network may charge 1 percent and the card-issuing bank an additional 2 percent, “a total of a 3 percentage point foreign transaction fee”. That is an example written into the rule, not a survey of what cards charge.

How much it is

Capital One says fee charges are “generally 1%-3% of the transaction amount”, that not all card issuers charge one, and that it can vary by issuer and by card. It points to the card agreement for a card’s own terms.

For example: at 3%, a purchase of $100 carries a fee of $3.

The exchange rate is a separate part

Visa says that since April 2021 it has used the same exchange rate across authorization, clearing and settlement, and that “there are no charges or fees associated with this change”. Its page does not say what a card issuer adds to the rate, if anything.

Where JetSet fits

JetSet is a wallet app for paying by scanning a QR code, in JETS, a token on the Stellar network. JetSet’s own fee is not set yet. How you get JETS is not decided yet. Nothing here compares it with a card.

Sources

  1. Consumer Financial Protection Bureau, Regulation Z commentary (comment 4(a)-4.ii.B). Checked .An example of a 1 percent network charge and a 2 percent issuer charge, “for a total of a 3 percentage point foreign transaction fee”.
  2. Capital One, “Foreign Transaction Fees Defined & Explained”. Source dated . Checked .“Generally 1%-3% of the transaction amount.”
  3. Visa, “Pay the same exchange rate every time”. Checked .From April 2021 one exchange rate is used through authorization, clearing and settlement, with no charge for that change. It does not say what an issuer adds.