Online Banks With No Debit Card Foreign Transaction Fees

If you travel abroad, paying foreign transaction fees on international debit card purchases or ATM withdrawals can quickly inflate your costs. But some banks, including online banks, offer debit cards with no foreign transaction fees, allowing you to spend money overseas without additional charges.

Even with no-foreign-transaction fee debit cards, you should be mindful of dynamic currency conversion fees that can result in exchange rate markups and fees. International ATM fees can also apply to ATM cash withdrawals, depending on the ATM network and your bank’s policies.

Choosing an online bank with no debit card foreign transaction fees is a smart way to save money on international travel. Here’s what you need to know about avoiding these fees and a list of online banks that don’t charge them.

What to know about no-foreign-transaction-fee debit cards

Foreign transaction fees may apply when you make purchases in a foreign currency,

withdraw cash from international ATMs or use your debit card for point-of-sale purchases — payments for goods or services made in person or online. A debit card foreign transaction fee may be 1% to 3% of the transaction.

Debit cards with no foreign transaction fees waive this surcharge, offering fee-free international usage. If you also pay fees for using out-of-network ATMs, your financial institution may reimburse you for those fees or partner with international ATM networks to waive them.

In addition to foreign transaction and ATM fees, you may face dynamic currency conversion fees, charged by an ATM or a merchant at the point of sale to cover the cost of converting foreign currency to local currency. Usually, dynamic currency conversion results in less favorable rates than you can get elsewhere and is best avoided.

Banks that waive foreign transaction fees and reimburse ATM fees can offer savings when you travel abroad. You can make debit card purchases and access your funds without concern for fees — except dynamic currency conversion fees, which you should turn down.

Online banks with no debit card foreign transaction fees

These online banks (some with physical locations) offer debit cards with no foreign transaction fees, allowing you to spend without extra charges. Some, though not all, offer international ATM networks or ATM fee reimbursements for withdrawals when you travel abroad.

• Betterment: You can avoid foreign transaction fees using a debit card from your Betterment Checking account. This account also offers reimbursements for domestic and international ATM fees.
• Capital One 360: The Capital One 360 Checking account has no foreign transaction fees or international ATM fees. You’ll be able to access more than 70,000 fee-free ATMs.
• Charles Schwab Bank: Charles Schwab Bank’s Investor Checking Account offers a robust mobile app and a debit card with no foreign transaction fees. Customers get unlimited ATM fee rebates for cash withdrawals with their debit card wherever it is accepted.
• Chime: You can use your card in most countries where Visa is accepted as long as you enable international transactions, and Chime won’t charge foreign transaction fees. However, you’ll pay a $2.50 fee for withdrawing cash from an out-of-network ATM.
• Discover Bank: With Discover Bank’s Cashback Debit Account, you’ll have no foreign transaction fees and no fees to use an ATM. But the owner of an ATM outside of the Allpoint and MoneyPass networks may charge a fee. Also, know that the Discover network has more limited international acceptance than Visa or Mastercard debit cards, so you should verify whether your destination accepts Discover before taking your card on a trip.
• HSBC: Known for its international presence, the HSBC Premier checking account has no foreign transaction fees for debit card purchases. It doesn’t charge a fee for withdrawing money from international ATMs, either.
• Heritage Bank: With a Heritage Bank eCentive Checking account, you can get up to $25 in monthly reimbursements for Mastercard cross-border and currency conversion fees on debit card foreign transactions.
• Santander Bank: You won’t pay foreign transaction fees when you use a debit card from your Santander Select Checking account. International ATM withdrawals also carry no fee.
• SoFi Bank: SoFi’s online checking account, which also includes a savings account, partially reimburses foreign transaction fees. There’s a 0.9% foreign convenience fee that SoFi pays for you, but there’s also a 0.2% Mastercard foreign exchange fee that SoFi doesn’t reimburse.
• TD Bank: Though TD Bank isn’t exclusively an online bank, its Beyond Checking Account has no foreign transaction fees on purchases. TD Bank doesn’t charge an international ATM withdrawal fee, and account holders with a $2,500 minimum daily balance can get reimbursement for ATM fees.
• Varo Bank: The Varo Bank Account has no foreign transaction fees and offers fee-free access to more than 55,000 Allpoint ATMs in the U.S. However, a $3.50 fee applies for international out-of-network ATMs, so withdrawing cash is not ideal.

How to avoid debit card foreign transaction fees

You can dodge fees by simply choosing a bank account with a debit card that charges no foreign transaction fees. You could also consider using a credit card with no foreign transaction fees.

You can also exchange dollars for foreign currency before your trip abroad to avoid debit card foreign transaction fees, and plan to make your purchases in cash while traveling. But be careful not to lose or have the cash stolen, and bring a backup payment method, such as a debit or credit card.

If you’re shopping online with international merchants, make sure they accept U.S. currency. Make sure merchants accept U.S. credit cards and U.S. dollars.