Traveling internationally? Watch out for foreign transaction fees. They can rack up quickly when you use your debit card to make purchases or cash withdrawals abroad, just like when you use a credit card.
If you withdraw local currency at an ATM, your bank could tack on a $1 to $5 charge, and you may also pay a percentage — often 1% to 3% — of the transaction amount. On top of that, the ATM’s owner may charge a few euros or yen as well.
» MORE: Find a no-foreign-transaction-fee credit card
If you make a debit purchase at a store or restaurant, you’ll likely pay a percentage fee, also called a currency conversion fee or foreign transaction fee.
But charges vary widely by institution and some are more traveler-friendly than others. Here are three banks that stand out.
Institutions that don’t charge foreign transaction fees for debit card use
Charles Schwab Bank:
The banking unit of this securities broker doesn’t charge a fee when you use a foreign ATM. In fact, it offers unlimited reimbursements for ATM fees from cash withdrawals worldwide, regardless of the network used. And it doesn’t charge currency conversion fees for debit card transactions.
Capital One 360:
Capital One Bank’s online unit doesn’t charge a conversion fee or a fee for using a foreign ATM network, though it says MasterCard may add an “adjustment factor” based on the value of a foreign-currency transaction.
Discover Bank:
The bank doesn’t charge foreign ATM network or currency conversion fees, but Discover cards work in only a few countries outside of the U.S., including Canada, Mexico and some Caribbean nations.
» MORE: Banking tips for students abroad
Before you travel overseas, use this list to find out how much it will cost to use your debit card at your destination. Fees shown are what the bank or credit union charges when a basic account holder makes an ATM withdrawal or a debit card purchase internationally.
Note that premium account holders might be eligible for certain fee waivers. And be aware that some ATM owners add an additional fee.
| Institution | ATM fee | Debit transaction fee |
|---|---|---|
|
|
1% of amount Alliant reimburses up to $20 monthly for out-of-network ATM fees, including abroad |
1% of amount |
| 1% of amount | 1% | |
| $5 flat fee + 3% of amount | 3% | |
|
Bank5 Connect |
1% of amount | 1% |
|
BB&T |
$5 + 3% of amount (No flat fee for Texas account holders) | 3% |
|
BBVA Compass Bank |
$2.50 + 1% of amount | 3% |
|
BMO Harris |
$2.50 + 3% of amount | 3% |
| $5 + 3% of amount | 3% | |
| No fee for using Citibank ATMs in 40 countries $2.50 non-Citibank ATM fee + 3% of amount |
3% | |
|
Citizens Bank |
$3 + 2.8% to 3% of amount | 2.8% to 3% of amount |
|
Connexus Credit Union |
$2 + 1% of amount | 1% |
|
Consumers Credit Union |
$2 + 2% of amount | 2% |
|
Fifth Third Bank |
$5 + 3% of amount | 3% |
|
HSBC Bank |
3% of amount | 3% |
| Greater of $5 or 3% of amount | Greater of $0.50 or 3% of amount | |
|
Nationwide Bank |
$1.50 + 1% of amount | 1% |
| $1 + 0.8% to 1% of amount |
0.80% to 1% of amount | |
| Up to 2% of amount | Up to 2% |
|
|
Regions Bank |
$5 + 3% of amount | 3% |
|
SunTrust Bank |
$5 + 3% of amount | 3% |
| $3 | None | |
|
Union Bank |
$5 |
2% |
| $2.50 + up to 3% of amount |
Up to 3% of international currency transactions | |
|
|
$5 | 3% of value |
If the fees connected to your current bank seem too expensive, consider switching to a more travel-friendly bank or a no-foreign-transaction-fee credit card, especially if you travel abroad frequently. And no matter where you bank, let your financial institution know where you’ll be traveling before you depart to avoid any unwarranted fraud alerts on your account.
Spencer Tierney and Jeanne Lee are staff writers at NerdWallet, a personal finance website. Email: spencer@nerdwallet.com or jlee@nerdwallet.com. Twitter: @SpencerNerd or @jlee_jeanne. John Gower of NerdWallet contributed to this report.
This article was updated June 22, 2016. It was originally published March 27, 2016.
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