Capital One foreign transaction fee guide

Capital One doesn’t charge foreign transaction fees on any of its credit cards, including business cards. You can use them abroad or with international vendors without paying the 1% to 3% fee most banks still apply.

But that doesn’t mean every charge is fee-free. Depending on how and where you spend, you might still be charged hidden costs, either from ATM withdrawals or dynamic currency conversion.

Why does Capital One not charge foreign transaction fees?

Capital One removes foreign transaction fees from all of its credit cards to offer a simpler, more transparent pricing model. Where most issuers charge 1% to 3% on purchases made in other currencies, Capital One chooses not to, on any of its personal or business cards.

This policy is a strategy. Capital One uses it to stand out in a crowded market and remove complexity for cardholders who spend internationally. Whether you're traveling, managing vendors abroad, or buying from a non-U.S. website, you won’t need to guess what extra fees apply.

You don’t need to opt in while applying for the credit card. The policy applies automatically to all eligible Capital One cards. The no-fee approach also reflects how spending has changed. By removing foreign transaction fees entirely, Capital One makes it easier to manage international purchases without unpredictable costs.

How currency conversion works with Capital One

When you make a purchase in a foreign currency using a Capital One card, the amount is converted to U.S. dollars before it shows up on your statement. The payment network handles this process.

The exchange rate used is the market rate set by Visa or Mastercard on the day the transaction is processed, not the day you made the purchase. These rates update daily and reflect wholesale currency values without any markup from Capital One.

Capital One does not charge a separate conversion fee. You will pay the converted amount based on the network rate.

You should still look for dynamic currency conversion (DCC). Some international merchants offer to charge your card in U.S. dollars instead of the local currency. This might seem more convenient, but it usually comes with a worse exchange rate and extra fees. Always choose to pay in the local currency to avoid unnecessary costs.

Visa and Mastercard publish their current exchange rates online. To verify what you are being charged, you can compare your receipt total with the network’s posted rate for that day.

Capital One business cards and their foreign transaction fees

While some businesses prioritize cash flow, others want travel rewards, and many just want to build credit while keeping costs low. Capital One offers a full lineup of business credit cards built around those goals.

When foreign transaction fees still apply

Capital One removes its own foreign transaction fee across all business credit cards. But that doesn’t mean you’ll never see added charges when making international purchases. In some situations, other institutions or merchants can apply fees that affect your final cost.

1. Foreign ATM fees

When you use your Capital One card to withdraw cash from an ATM outside the U.S., you may still be charged fees, just not by Capital One. Most foreign ATMs charge a withdrawal fee set by the ATM owner or local bank. These fees vary depending on the country and institution and are added directly at the point of withdrawal.

In addition to the ATM fee, you could also face a network access fee if the ATM is not part of a supported network such as Plus or Allpoint. These charges are controlled by the ATM provider, not Capital One, and they will appear as separate line items on your statement.

Capital One does not reimburse these ATM-related fees. If your business relies on cash abroad, it is a good idea to limit how often you withdraw and use digital wallets where possible to avoid these extra costs.

2. Dynamic currency conversion (DCC)

Dynamic currency conversion, or DCC, is a service where a foreign merchant or ATM gives you the option to pay in U.S. dollars instead of the local currency. While it appears convenient, DCC is often a way for third parties to apply unfavorable currency exchange rates and hidden markups.

The merchant or ATM sets the conversion rate, not your card network. This rate is usually less favorable than what Visa or Mastercard would offer. As a result, you may end up paying 3% to 7% more than necessary without realizing it.

Always choose to pay in the local currency when prompted. This ensures the conversion happens through your card's payment network, using rates that are typically more accurate and cost-effective.

3. Third-party international processing fees

Some international websites or service providers may charge a separate “cross-border” or “international service” fee. Capital One does not add this charge. Instead, it comes directly from the merchant or the payment processor handling the transaction.

You may encounter this fee when booking international travel plans through foreign-based platforms, paying for services from international software vendors, or subscribing to tools and memberships based outside the U.S. These charges often appear after you've submitted payment and are listed as separate line items on your credit card statement.

These third-party fees can still impact your total cost even with a Capital One card. Before you confirm a payment, it's important to review the full breakdown of charges and check whether the platform you’re using is based outside the U.S.

4. International shipping and handling fees

Buying goods from a foreign supplier might be charged international handling or conversion fees tied to logistics or customs. These aren’t technically foreign transaction fees, but they still increase the total cost of international purchases.

Make sure to confirm whether the final amount includes shipping, duties, or any handling charges, especially when dealing with direct suppliers or wholesalers.

Why growing businesses choose Ramp instead

As your business grows, managing travel expenses and international transactions gets more complicated. You need more control, but you can’t afford to slow your team down. Ramp gives you that control without adding manual work to your finance process.

With Ramp, you can issue physical and virtual cards to employees and set custom spending limits by team, location, or vendor. That means you can stay on budget, even when your teams are traveling or managing international payments.

Sana Benefits, a health insurance company scaling rapidly across the U.S., ran into challenges with unstructured travel and expense spending. After switching to Ramp, they reduced out-of-policy travel spend by 10% and cut receipt tracking time from weeks to minutes. They were able to set flexible parameters, like allowing bookings up to 25% above market rate, while keeping oversight in one place.

Ramp also automates the time-consuming parts of expense management. It categorizes transactions, matches receipts, and syncs directly with tools like QuickBooks and NetSuite. That saves your finance team from chasing receipts or cleaning up reports at month-end. If you’re scaling fast and spending globally while traveling, Ramp gives you the card and the control to do it without losing visibility.

Understanding the fine print behind Capital One’s fee-free cards

Capital One removes the foreign transaction fee, but that’s only part of the cost equation. Knowing when fees can still apply through ATMs, third-party platforms, or currency conversion helps you avoid surprises and keep your international spending under control.

Capital One’s zero-fee policy makes it a competitive choice but doesn’t eliminate every cost tied to global payments.

Understanding the fine print gives you an edge if your business operates across borders. You’ll make smarter choices at checkout, avoid inflated exchange rates, and spot hidden charges before they affect your bottom line.

Choosing a card with no foreign transaction fees is a smart starting point. But the Ramp corporate card offers a different approach if you’re looking for a solution designed from the ground up for global business spend. You get the same fee-free international use, plus a fixed cash-back on every purchase, no personal credit checks, and higher limits based on your business finances.