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 2% to 3% fee most banks still apply.

Not every charge will be fee-free, though. Depending on how and where you spend, you might still encounter added costs from ATM withdrawals or dynamic currency conversion. The key is understanding how Capital One’s policy works and how to make the most of it when you spend internationally with a no-foreign-fee card.

What are foreign transaction fees?

Foreign transaction fees are charges credit card companies add when you make purchases in a foreign currency or through an international merchant. Most cards charge between 2% and 3% of the transaction amount, which appears as a separate line item on your monthly statement.

You’ll encounter these fees when shopping from international retailers, withdrawing cash from ATMs abroad, or making in-person purchases while traveling. Even domestic transactions with foreign-based merchants can trigger them.

Foreign transaction fees differ from currency conversion fees, though people often confuse the two. The foreign transaction fee is what your card issuer charges for processing an international purchase, while currency conversion fees cover the cost of exchanging dollars for another currency—typically handled by payment networks such as Visa or Mastercard.

How foreign transaction fees are calculated

The typical fee combines two parts: a 1% network fee from payment processors such as Visa or Mastercard, plus a 1%–2% issuer fee from your bank. Together, these create the standard 2%–3% total you see on statements.

Here’s how those fees can add up in real-world scenarios:

These percentages multiply quickly on expensive trips. A two-week trip with $8,000 in total spending generates $240 in fees at 3%. Business travelers who make frequent international purchases can see hundreds or even thousands in annual foreign transaction charges.

Capital One’s foreign transaction fee policy

Capital One removes foreign transaction fees from all of its credit cards to simplify pricing for customers. While most issuers charge 2%–3% on purchases made in other currencies, Capital One doesn’t—on any of its personal or business cards.

This approach helps the company stand out in a crowded market and gives cardholders predictable costs when spending 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 when applying for the credit card; the policy applies automatically to all Capital One cards. It also reflects how spending has changed. By removing these fees entirely, Capital One makes international purchases easier to manage without unpredictable costs.

Capital One personal credit cards without foreign transaction fees

Capital One’s personal credit cards also waive foreign transaction fees across the board. Whether you’re booking hotels or shopping online with international merchants, you’ll avoid the typical 2%–3% charge. Here are a few popular options:

Capital One business credit cards for international use

While some businesses prioritize cash flow, others want travel rewards or simply a way to build credit while keeping costs low. Capital One offers a full lineup of business credit cards designed around those goals.

Additional benefits for business travelers

Capital One business cards include benefits that go beyond waiving foreign transaction fees. Many offer travel insurance coverage, including trip cancellation protection and lost luggage reimbursement. You’ll also get purchase protection and extended warranty coverage on eligible business equipment bought abroad.

Rental car insurance is especially valuable internationally, saving $20–$30 per day in coverage fees. Most Capital One business cards include this automatically, and some premium cards add airport lounge access through Priority Pass—ideal for working between meetings.

Rewards on these cards can also offset travel costs. For example, the Spark Miles card earns 2X miles on every purchase, including international transactions. You can redeem those miles for statement credits against travel purchases or transfer them to airline partners for added value.

Employee cards

Capital One makes it simple to issue employee cards for team members who travel internationally. You can add authorized users at no extra cost on most business cards, setting spending limits you control. That flexibility helps manage company expenses while empowering your team abroad.

Employee cards earn rewards that feed into your main account, maximizing earning potential across all business spending. You’ll get detailed monthly statements showing purchases by employee, simplifying reconciliation and giving you visibility into travel budgets.

These cards also include fraud protection and liability coverage. If a card is lost or stolen, you can freeze or cancel it instantly without disrupting other users. Capital One’s mobile app lets you manage employee cards from one dashboard, whether you’re in the office or on the road.

How currency conversion works with Capital One

Capital One uses the exchange rates set by Mastercard or Visa, depending on your card’s network. These rates are highly competitive because they’re based on wholesale interbank pricing with minimal markup. Your card automatically converts foreign currency to U.S. dollars at the time of purchase.

The exchange rate you receive depends on your payment network. Mastercard and Visa update rates daily based on market conditions. The rates are usually within a fraction of a percent of each other, though they can fluctuate slightly throughout the day.

To get the best exchange rates with your Capital One card, always pay in the local currency when given a choice at checkout. Avoid converting money before your trip through airport kiosks or currency exchange counters, which typically charge 5%–10% markups. Let your Capital One card handle conversion directly at the point of sale.

Dynamic currency conversion: What to avoid

Dynamic currency conversion (DCC) is a service that merchants and ATMs offer to charge your card in U.S. dollars instead of the local currency. While it sounds convenient, it often comes with hidden costs. The merchant or ATM operator sets the exchange rate and usually adds a 3%–7% markup above the standard rate.

Always decline DCC when traveling abroad. If a payment terminal asks whether you want to pay in dollars or the local currency, choose the local option. This forces the transaction through your card’s payment network at the better wholesale rate instead of the merchant’s inflated rate.

Here’s an example: A €100 restaurant bill in Rome converts to roughly $108 at standard Visa rates. With DCC, that same bill might appear as $115, costing you an extra $7. On a $3,000 trip, repeatedly accepting DCC could add $150–$200 in unnecessary charges.

How to maximize your Capital One card abroad

Getting the most from your Capital One card while traveling internationally requires some preparation and smart habits before and during your trip. Here’s a pre-trip checklist:

• Notify Capital One of your travel dates and destinations through the mobile app, website, or by phone
• Save Capital One’s international customer service number (+1-804-934-2001) in your phone. You can call this number collect.
• Check which ATM networks partner with Capital One in your destination countries
• Enable transaction alerts and mobile app notifications for real-time purchase monitoring
• Make a copy of your card number and store it separately from your physical card
• Verify your card’s chip-and-PIN functionality before departure

Completing these steps helps prevent card declines and ensures you can reach support quickly if issues arise.

Best practices for international transactions

Always choose to pay in local currency at checkout terminals or ATMs. This avoids DCC markups and gives you a better exchange rate through your card’s payment network. Keep your receipts to verify charges against your statement later.

Use chip-and-PIN technology whenever possible instead of swiping your card’s magnetic stripe. Chip transactions offer stronger security against credit card fraud and are the standard payment method across most regions. Some automated kiosks, especially for trains and parking, may require chip-and-PIN exclusively.

Check your account regularly through the Capital One mobile app while traveling. Set up instant purchase notifications so you’ll know immediately if unauthorized charges appear. This allows you to report fraud quickly and minimize potential losses.

Security tips for using cards internationally

Protecting your card abroad starts with awareness. Shield your PIN when entering it at ATMs or terminals, and use ATMs inside banks or well-lit areas rather than standalone machines. Avoid ATMs that look tampered with or have unusual attachments.

Keep your card in sight during transactions. Some fraud schemes involve merchants taking your card out of view to copy information. When possible, use contactless tap-to-pay for small purchases to avoid handing over your card.

Store cards in RFID-blocking wallets or sleeves to prevent digital pickpocketing. Carry only the cards you need for the day and leave extras secured in your hotel safe. Split payment methods across different locations so you have backups if one card is lost or stolen.

ATM withdrawals and cash advances

Capital One doesn’t charge foreign transaction fees on ATM withdrawals with its credit cards. You’ll still pay the standard cash advance fee and immediate interest, which makes credit cards a costly way to get cash abroad. Debit cards are usually better for ATM withdrawals because they avoid cash advance fees while still waiving foreign transaction fees.

Many countries have ATM partnerships that reduce or eliminate withdrawal fees. Using partner networks can save several dollars per transaction compared to out-of-network ATMs. Check your destination ahead of time to see which networks are available and what local banks participate.

Capital One partner ATM networks can include (varies by destination):

• Allpoint (US, Canada, Mexico, UK, Australia)
• MoneyPass (primarily U.S. locations)
• Global ATM Alliance networks in select countries
• Local bank partnerships in major tourist areas

Cash advance fees are different from foreign transaction fees. A cash advance typically triggers an immediate 3% fee (minimum $10) plus interest that starts right away at a higher APR than purchases. Foreign transaction fees apply to purchases made in foreign currency, which Capital One waives across its cards.

Online international purchases

Foreign transaction fees can apply to online purchases when you buy from merchants based outside the U.S., even if you’re shopping from home. The determining factor is the merchant’s location, not your location or the site’s domain.

How to identify international transactions:

Spotting international merchants before checkout helps you track which purchases may trigger fees on cards that charge them. Here’s how to do it:

• Check the merchant’s billing address in the checkout footer or terms of service
• Look for prices shown in foreign currencies before conversion to USD
• Note whether the payment processor lists an international company name
• Review seller information on marketplace platforms such as eBay or Etsy
• Watch for non-U.S. domains (.co.uk, .ca, .au, etc.)

These indicators help you make informed decisions about where to shop and which card to use for each purchase.

Online security best practices

Protecting your card information during online international purchases requires vigilance and smart habits that prevent fraud. Here are a few tips to help you protect yourself:

• Use secure websites (HTTPS with a lock icon)
• Consider Capital One’s virtual card numbers for one-time purchases from unfamiliar merchants
• Enable two-factor authentication on your Capital One account
• Avoid purchases on public Wi-Fi unless you use a VPN
• Review your transaction history regularly and set up alerts for unusual activity
• Enable low-balance or large-purchase alerts to catch fraud quickly

Comparing Capital One to other major issuers

Capital One stands out among major credit card issuers by waiving foreign transaction fees across its entire card lineup. This contrasts sharply with many competitors who reserve this benefit for premium cards or charge the standard 3% fee on most products. Here’s a quick comparison:

Capital One's approach of eliminating foreign fees on everything from basic cashback cards to premium travel rewards gives them a clear edge for international use. This policy means even cardholders with modest credit or those starting their credit journey can travel without extra charges. You don't need to qualify for a premium card or pay an annual fee to access this benefit.

Other no-foreign-fee options

Beyond major issuers, several other card categories offer international travelers fee-free purchases:

These alternatives give travelers more ways to avoid fees, especially if they want specific airline perks or prefer working with credit unions or fintech providers. Always verify current policies before applying, as issuer terms can change.

When Capital One cards make sense for international use

Capital One cards are ideal for frequent travelers who want straightforward value without complex reward structures. If you spend abroad several times per year for business or leisure, the savings from waived foreign fees add up quickly. A traveler spending $10,000 annually on international purchases saves about $300 compared to cards that charge 3% in fees.

Business owners and consultants who manage international expenses benefit from Spark cards that pair no foreign fees with strong rewards earning. For instance, the Spark Miles card earns 2X miles on every purchase, including international transactions. Those rewards accumulate faster than standard 1% cashback options, maximizing returns on business travel.

Capital One’s rewards programs also suit travelers who prefer flexibility over loyalty to one airline or hotel group. Venture X cardholders can transfer miles to more than 15 airline partners or redeem them for any travel purchase at competitive rates. That flexibility is valuable if your international travel spans multiple carriers or destinations throughout the year.

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 US, 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, such as allowing bookings up to 25% above market rate, while keeping oversight in one place.

Use Ramp to maximize your travel spending

Ramp automates the time-consuming parts of expense management. It categorizes transactions, matches receipts, and integrates with tools such as QuickBooks and NetSuite. That saves your finance team from chasing receipts or cleaning up reports at month-end.

If you’re scaling quickly and spending globally while traveling, Ramp gives you the card and the control to do it without losing visibility. You get fee-free international use, plus a fixed cashback on every purchase, no personal credit checks, and higher limits based on your business finances.

Apply for a Ramp corporate card and get a solution designed from the ground up for global business spend.