Last Updated on December, 2024
I ALWAYS plan trips abroad and frequently make purchases in foreign currencies, so I understand the importance of knowing the fees associated with Bank of America during foreign transactions.
So, I researched a lot and now do transactions without fear.
I’ve discussed everything you need to know about foreign transaction fees, international ATM fees, and alternatives to help you save money while traveling or shopping internationally.
TRUST ME. Whether you’re a frequent traveler (like me) or an occasional international shopper, understanding these fees will make an important difference in your financial planning.
Keep reading for a detailed idea!
Quick Summary
Bank of America charges a 3% fee for foreign transactions on checking and credit card accounts, with some cards having no foreign transaction fees but possibly an annual charge instead.
There are different types of Bank of America debit and credit cards with varying fees for foreign transactions, but some cards have no foreign transaction fees.
Alternatives to Bank of America for international transactions include digital providers like Wise and Revolut, which offer multi-currency accounts and fair exchange rates without additional fees.
Contents
- Does Bank of America Charge a Foreign Transaction Fees?
- How Do I Avoid Foreign Transaction Fees?
- Bank of America Credit Cards With No Transaction Fees
- What are Bank of America’s International ATM Fees?
- Alternatives for Bank of America
- Bank of America Exchange Rates
- Tips on Using ATMs and Paying By Card Abroad
- Conclusion
- FAQs
Does Bank of America Charge a Foreign Transaction Fees?
Bank of America usually charges a 3% fee when you use their checking account or credit card overseas. However, some credit cards (Bank of America), like the Travel Rewards cards, don’t have this fee, but they might have an annual charge instead.
The following is a breakdown of the key costs for three popular Bank of America cards:
If you’re worried about these fees, you might want to consider opening a multi-currency account with a digital provider like Wise or Revolut.
With these accounts, you can convert your dollars to other currencies without fees using the mid-market rate and spend freely overseas or online without worrying about foreign transfer fees.
Which Bank of America Debit Cards Have Foreign Transaction Fees?
Did you know that Bank of America provides debit cards for customers with Advantage banking accounts? There are different types of accounts, each with varying fees.
Foreign transfer fees apply when you buy things in a currency other than US dollars, such as when you travel abroad or purchase from an overseas seller. All Advantage banking accounts charge a 3% foreign transaction fee.
The fees and monthly charges depend on the type of account you have:
Which Bank of America Credit Cards Have Foreign Transaction Fees?
Some Bank of America credit cards charge a fee for transactions made in foreign countries. Not all cards have this fee.
Here are the cards that do:
How Do I Avoid Foreign Transaction Fees?
If you’re annoyed by the 3% fee, consider the Wise debit card. You pay a one-time fee for the card to avoid foreign transfer charges.
With the Wise card, you can spend in any currency worldwide and withdraw up to $200 from ATMs every 30 days. Wise uses the mid-market exchange rate, so there are no hidden fees. Enjoy fair and cheap transfers every time.
Bank of America Credit Cards With No Transaction Fees
GUESS WHAT? Bank of America has credit cards that don’t charge extra fees for transactions abroad.
Look at this table to find out if any of them suit you:
What are Bank of America’s International ATM Fees?
It’s important to know about the foreign ATM fees involved when using a Bank of America card abroad. Bank of America has a large network of ATMs, with over 16,000 locations in the US and more than 4,000 branches.
You can AVOID fees by using ATMs operated by their partner banks overseas. Typically, using an ATM outside the US will cost you $5 each time.
Plus, you might face extra fees from the ATM operator. Some non-Bank of America ATMs may charge additional fees on top of these. But if you use one of Bank of America’s international partners, you won’t incur these extra charges.
Alternatives for Bank of America
Wise
Wise is good for holding over 40 different currencies and using them with a linked card in more than 150 countries. They offer fair exchange rates and charge fees starting from 0.43%.
Yes, it’s safe to use Wise internationally. They’re a well-regulated and trusted provider. You can easily open a multi-currency Wise account online or in their app. With this account, you can hold and exchange currencies at fair rates.
You can also try a Wise card to spend and withdraw cash in over 160 countries. Some ATM withdrawals each month are FREE, and you can make quick and secure transfers to over 160 countries.
Another benefit is you can receive payments from over 30 countries using your local bank details in 10 currencies with your Wise account.
Revolut
Revolut offers different account plans with support for 25+ currencies and some free currency exchanges each month. There are no fees for spending any currency you hold, and you get mid-market exchange rate(s) up to a certain limit. After reaching that limit, there’s a 0.5% fee.
Revolut is safe to use internationally because it’s licensed and regulated worldwide. You can open a standard account with no opening or monthly fees. This account also offers free transactions and currency exchanges.
If you exceed your plan limits, you’ll pay fair usage fees. Alternatively, you can upgrade to a higher-tier account with monthly payments. These accounts offer higher transaction fees and extra features.
American Express
American Express provides various travel credit cards, some with no foreign transaction fees for international use. Cash advance fees of nearly 5% usually apply when using an ATM, and AmEx sets exchange rates.
It’s generally safe to use American Express cards internationally, but its popularity varies by region. So, it’s a good idea to check beforehand if AmEx is widely accepted at your destination. American Express also partners with banks and organizations to offer credit cards.
While some cards are optimized for travel with no foreign transaction fees, not all have this benefit. So, you’ll need to compare different cards to find the best one for you, considering costs, convenience, and rewards. Variable interest rates apply based on your credit value.
Bank of America Exchange Rates
You should definitely know this. When you use a Bank of America card abroad, your foreign currency payment is converted into dollars. This conversion is done using either Bank of America’s exchange rate or the rate set by your card network, such as Visa or Mastercard.
However, card network rates might have a small markup added to them, making them slightly different from what you see on dynamic currency conversion tools.
The markup is an extra fee, making it harder to know exactly how much you’re spending in dollars. Providers like Wise and Revolut break down the costs of currency exchange to be more transparent, showing you exactly what you’re spending each time.
Tips on Using ATMs and Paying By Card Abroad
The best part! Follow these tips on using ATMs and paying by card abroad, and you’ll definitely reduce your stress:
Useful guides:
- How to Wire Money With Bank of America?
- Capital One Foreign Transaction Fees Explained
- Truist International Wire Transfer Explained
Conclusion
Yes, understanding fees when you spend money in other countries is important.
By knowing about Bank of America’s charges and alternatives like Wise or Revolut, you can save money. Tell your bank before you travel, pick ATMs carefully, and watch exchange rate(s). With these tips, you can make your international transactions easier and cheaper.
However, remember! Being informed helps you save. So, plan and enjoy your international travel(s) without worrying about extra charges.
If you need more details, check Bank of America’s official website.
FAQs
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