Traveling internationally is always expensive so anything you can do to stretch your money a little further is great. One area you can save just a bit more is how you use your debit cards when you travel overseas. Debit cards provide basic access to your bank account. But banks vary very much in how much they charge you for using your debit card internationally. Read on to see what major US banks charge for using a Debit Card while traveling internationally.
Understand the fees the bank charges your debit card
Before diving into how much each major bank is charging you when you use your Debit Cards overseas, let me explain to you the three main fees that your bank may charge you. These three most common fees are: Debit Cards Foreign Usage Fee, Debit Card Foreign Conversion Fee and Debit Card Foreign Purchase Fee.
The foreign usage and foreign conversion fees have to do with withdrawing cash from an ATM machine in a foreign country, while the foreign purchase fee has to do with making purchases with your ATM Card in a foreign currency.
Let’s take a look in detail at these debit card fees.
A foreign usage fee is a fee charged by a bank when you simply use your ATM card overseas regardless of the amount you spend. Your bank may call it differently, but it is charged whenever you use your ATM card in a foreign country to withdraw cash. This fee varies from 0 to $5.
A foreign conversion fee is the fee charged by your bank to convert from US Dollars (or whatever your home country currency is) into the local currency in the foreign country your are visiting. This is a fee that depends on the amount of cash you are withdrawing. This fee varies from 0 to 3% of the amount of cash withdrawn.
A foreign purchase fee is the fee charged by your bank whenever you use your ATM card to make a purchase in a foreign currency. This fee varies from 0 to 3%.
Chart with major banks ATM/Debit Card fees
I compiled the following table from information I found on major bank’s websites. It is helpful to see all the fees together because they do vary wildly from one bank to the other. The best thing for you to do is to ask your bank and understand what fees they practice.
|Bank Name||Foreign Conversion Fee||Foreign Usage Fee||Fees for $100 withdrawal||Fees for $1000 withdrawal||Foreign Purchase Fee|
|Capital One 360||None||None||$0||$0||None|
|Bank of America||3%||$5||$8||$35||3%|
|Navy Federal Credit Union||1%||$1||$2||$11||1%|
|Pentagon Federal Credit Union||2%||None||$2||$20||2%|
|Sun Trust Bank||3%||$5||$8||$35||3%|
What are the best Debit Cards for traveling overseas?
I have been using my Wells Fargo ATM card for all my travels overseas. After increasing my daily cash limit to $1000 it has become very cheap for me to get cash overseas…just $5 per withdrawal. If you are looking for something even cheaper look at Charles Schwab Bank and Capital One as they reimburse any ATM fees even when using your debit card internationally. However, the most important thing is to check with the bank you already have and think about how much you plan to spend overseas. Then see if it really makes sense to open another account for your travels.