What is FOREIGN TRANSACTION FEE on my credit card statement?

This is not a merchant charge, but an extra fee from your bank for buying from a foreign business, usually 1% to 3% of the transaction amount.

Full Name & What It Is

FOREIGN TRANSACTION FEE stands for the fee your credit card issuer charges when you buy something from another country. Your bank collects this fee, not the store where you shopped. The math is simple. If you buy a $100 item from a Canadian website, your bank adds a $1 to $3 fee on top of it.

You might get this fee even if you pay in US dollars. If the merchant processes the payment outside the US, your bank still hits you with the charge. You can easily avoid this. Many cards skip this fee completely. The Chase Sapphire Preferred and Capital One Venture cards are popular options that do not charge you for international purchases.

Merchant Code: FOREIGN TRANSACTION FEE

Company: Your Bank / Credit Card Issuer

Service: International Purchase Fee (typically 1-3% of transaction)

Common Scenarios

1. International Online Purchase

Buying clothes or electronics from an international online store.

2. Traveling Abroad

Swiping your card while traveling outside the country.

3. Foreign SaaS Subscription

Paying for a subscription to a foreign SaaS tool like Canva or Figma.

4. Foreign Airline Ticket

Booking a flight directly on a foreign airline's website.

5. Overseas ATM Withdrawal

Using your credit card to withdraw cash from an ATM overseas.

Is This a Scam?

ℹ️ Not a scam — standard bank fee.

Honestly, it is not a scam. It is a standard bank fee. But many people do not know it exists. When they see it the first time, they think it is a random charge. Don't panic yet — look at your statement and see if you bought something from a business located outside the US.

Customer Service

Phone:

Call your bank

Number on back of your card

Website:

Your bank's website

Check fee schedule in card terms

Reddit User Discussions

"Saw a $4 FOREIGN TRANSACTION FEE and freaked out. Turns out it was from a UK website I bought a gift from. Wish I used my Venture card."

— u/traveljunkie88

"Got hit with a fee for Canva because they process payments overseas. Even though I paid in dollars! Switched to a no-fee card and problem solved."

— u/designerdave

"Called my bank to complain but they said it's standard. You can't get a refund for past fees, but definitely apply for a card without them."

— u/penny_pincher

How to Avoid / Get a Refund

Step 1. Check your statement to confirm the charge is a foreign transaction fee, not a merchant purchase.

Step 2. Call the number on the back of your card to ask your bank about their specific fee rate.

Step 3. Apply for a credit card that waives foreign transaction fees entirely.

Step 4. Remember you cannot get a refund for past fees, but using the right card will prevent future charges.

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Frequently Asked Questions

What is a FOREIGN TRANSACTION FEE?

It is a fee charged by your bank when you make a purchase from a foreign merchant. The fee is usually between 1% and 3% of the total transaction amount.

Can I get a refund for a FOREIGN TRANSACTION FEE?

It is very hard to get a refund for past fees because banks consider them standard charges. Your best option is to apply for a credit card that waives this fee entirely.

Why was I charged a fee if I paid in US dollars?

Your bank still charges the fee if the merchant processes the payment outside the US. The currency used does not matter, only the location of the payment processor.