- Credit card fees may be a specific dollar amount or a percentage of a transaction. The CFPB says that if you travel overseas frequently, you may consider a card with a lower or no foreign transaction fee.
- The CFPB advises avoiding high-APR transactions such as cash advances.
- Prepaid cards may work abroad, but some do not. Check your cardholder agreement before you travel, because foreign transaction fees may apply.
- Your prepaid card provider will likely require you to register the card with personal information before international use.
Credit cards
The CFPB’s Know Before You Owe guidance lists fees as one category of credit card cost, and says they can be a specific dollar amount or a percentage of a transaction. It does not give typical foreign transaction fee amounts. For travelers, it says: if you travel overseas frequently, you may consider a card with a lower or no foreign transaction fee. It also suggests asking whether a card’s benefits or rewards are worth its annual fee, and avoiding high-APR transactions such as cash advances.
Our guide to credit card grace periods and interest explains why cash advances cost more: grace periods generally do not cover them, and interest usually starts on the transaction date.
What a percentage fee costs
This is our own arithmetic. The 3% rate is an assumption for illustration, so find the real rate in your cardholder agreement.
| Spending abroad | Fee at 3% |
|---|---|
| $100 | $3.00 |
| $500 | $15.00 |
| $2,000 | $60.00 |
Prepaid cards
Benefit recipients with a prepaid card can compare the fees in our Direct Express card guide. The CFPB says you may be able to make purchases or ATM withdrawals outside the U.S. with a prepaid card, but some cards do not work abroad at all, so check your cardholder agreement first. Foreign transaction fees may apply, so review the card’s fee terms. Before you travel or pay in a foreign currency, confirm any restrictions in your agreement. Your provider will likely require you to register the card with personal information so it can verify your identity before international use.
Before you leave
| Check | Why |
|---|---|
| The foreign transaction fee on each card you will use | It may be a dollar amount or a percentage of each transaction. |
| Whether a cash advance is your only way to get cash | The CFPB advises avoiding high-APR transactions such as cash advances. |
| Whether a prepaid card works abroad and is registered | Some do not work abroad, and providers likely require registration first. |
| The annual fee against the benefits | The CFPB suggests asking whether rewards are worth the fee. |
Frequently asked questions
Do credit cards charge foreign transaction fees?
Some do. The CFPB says credit card fees may be a specific dollar amount or a percentage of a transaction, and suggests that frequent overseas travelers consider a card with a lower or no foreign transaction fee.
Can I use a prepaid card abroad?
Maybe. The CFPB says you may be able to make purchases or ATM withdrawals outside the U.S., but some cards do not work abroad, so check your cardholder agreement.
Is a cash advance abroad a good idea?
The CFPB advises avoiding high-APR transactions such as cash advances.
Do I need to register a prepaid card before traveling?
The CFPB says your provider will likely require you to register the card with personal information so it can verify your identity before international use.
Sources
- CFPB: Know Before You Owe, credit cards (page last modified December 12, 2024)
- CFPB: Can I use my prepaid card outside of the U.S.? (last reviewed September 6, 2024)
Each source was opened and read on October 26, 2026. See how we verify.