What is Credit Card Foreign Transaction Fee? Which Credit Card has 0 Foreign Transaction Fees in 2025?

updated: Feb 04, 2025

Between forex markups, foreign currency transaction fees, currency conversion fees and DCC, trying to find out how much you’re paying in credit card overseas charges is a mind-boggling affair. Achieve clarity with this concise guide.

SingSaver Team

written_by SingSaver Team

What is Credit Card Foreign Transaction Fee? Which Credit Card has 0 Foreign Transaction Fees in 2025?

Using a credit card overseas is one of the most popular ways to pay when in another country, due to a combination of attractive rewards, safety and convenience. But what’s not so great about using your credit card in a foreign currency are the various fees and charges involved.

While foreign transaction fees alone aren’t likely to blow up your bank account, they can still add up to a pretty sum. Read this guide to understand how much more you are really paying when tapping your credit card while on holiday.

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What are credit card overseas charges?

What exactly is a credit card foreign transaction fee? When you pay with your credit card overseas, a lot happens behind the scenes. Let’s say you pay for a restaurant meal in Japan, which would be charged in Japanese Yen.

The JPY amount charged to your credit card is first converted to USD, then converted to SGD; this is the final amount that gets charged to your credit card balance.

Each time currencies are converted, a spread is involved. This could be a government-mandated rate, or wholesale interbank exchange rates. For processing your transaction, both the card association (Visa, Mastercard, American Express, etc.) and the bank charge a fee. That is why it’s important to ask the question “Does my credit card charge extra for international transactions?” before you spend in order to avoid any bill shock when you come back from overseas.

There are also other instances where you might encounter overseas charges. One scenario is when you opt to pay in SGD while overseas through a service known as Dynamic Currency Conversion – which is not a free service.

Another scenario is when you find yourself urgently needing cash halfway through your holiday, prompting you to take a cash advance fee. Once again, doing this will incur credit card overseas fees. 

And that’s not the end of the story. There are many other credit card overseas charges and foreign transaction fees that you may encounter.

Foreign transaction fees you need to know

Fee

Rate

Credit card foreign exchange rate

Rate determined by respective card associations

Foreign currency transaction fee

3.25% to 3.5%


(Card association: 1%

Bank admin fee: 2.25% to 2.5%)

Currency conversion fee for SGD transactions processed outside of Singapore

1% to 2.8%

Dynamic currency conversion (DCC)

Rate determined by DCC providers

Cash advance fee

8% of amount withdrawn, or S$15, whichever is higher

As you can see, there are several fees and charges that you can incur on foreign currency transactions. We’ll discuss each one in the following sections. 

Credit card foreign exchange rate

As mentioned earlier, foreign currency transactions are first converted to USD then to SGD. These conversions are carried out at forex rates determined by the respective card associations, which are not disclosed to the cardholder.

Also, the forex rate used will depend on the day the conversion is processed, which may not be on the same day as when you made the purchase. A markup may be included on top of the mid-market exchange rate. 

Foreign currency transaction fee

Both your bank and the card association charge a fee for processing foreign currency transactions. This is on top of the credit card foreign exchange markup.

Typically, card associations charge 1% of the value of the transaction. Meanwhile banks charge up to 2.5% – this means foreign currency transaction fees can range from 2.25% to 2.5%. In many cases, this is the largest fee associated with overseas transactions.

Currency conversion fee on SGD transactions processed overseas

If your credit card transaction is charged in SGD but processed overseas, you will not incur the foreign currency transaction fee. Instead, you will be charged a currency conversion fee.

This fee varies widely, from 1% to 2.8%, depending on your bank. Currency conversion fees apply even on online transactions, so before you click that Check Out button, you may want to check where the e-commerce store or platform is based.

This is considered a hidden fee because it's not always clear that a transaction is processed overseas, especially for online purchases. You might assume you're paying in SGD and avoid extra fees, but a foreign intermediary bank can trigger this unexpected charge.

Dynamic Currency Conversion (DCC) fee

When you’re shopping overseas (or online), you may be offered the option to pay in SGD instead of the local currency such as JPY or TWD or THB.

This is a service known as DCC, and is touted as a convenient service for travellers who want to know exactly how much they are spending. However, DCC should always be avoided because it is notorious for charging a high markup. DCC fees in credit cards are considered a type of hidden fee because it often appears as a helpful service, disguising the unfavorable exchange rates and added costs imposed by third-party providers.

The forex rate used is determined and paid to the DCC providers, which are not your card associations. This means that in addition to DCC, you will be charged the currency conversion fee (see above) – an extra 1% to 2.8%.

Cash advance fee

A cash advance allows you to withdraw part of your credit limit in cash from a compatible ATM. This can be a lifesaver in a pinch, such as when you find yourself in need of cash while overseas. 

The catch is cash advance fees are costly, typically at 8% of the amount withdrawn, or S$15, whichever is higher. Also, the cash withdrawn must be repaid to your credit card account in the upcoming statement, with any shortfall subject to credit card interest charges.

What are the hidden fees?

When using your credit card overseas, you might be surprised to find extra charges on your statement beyond the actual cost of your purchases. These hidden fees can inflate your spending, often disguised within complex terminology or seemingly convenient services. Let's break down some of the most common culprits:

Currency conversion fee

This fee applies when your credit card transaction is processed by a bank outside of Singapore, even if you're charged in SGD. Think of it as a surcharge for the bank facilitating the conversion of currencies.

Example: Imagine you buy a pair of shoes from an Australian online store for S$100. Even though you're charged in SGD, the transaction might be processed by an Australian bank. Your bank could then add a currency conversion fee, say 1.5%, which means you'll actually pay S$101.50.

Why it's hidden: This fee isn't always clearly disclosed and can be easily overlooked, especially with online transactions where the merchant's location might not be immediately obvious.

Administrative fee

This fee is charged by your bank for the administrative overhead of processing international transactions. It's essentially a handling charge for managing the complexities of overseas payments.

Example: You use your DBS Visa card to pay for a €50 meal in Italy. DBS charges a 1.8% administrative fee on this transaction. This means you'll incur an extra €0.90 (approximately S$1.30) just for using your card.

Why it's hidden: While this fee is usually mentioned in the card's terms and conditions, it's often buried in the fine print and not explicitly highlighted during the transaction.

Foreign exchange rate

The exchange rate used to convert your foreign currency transaction into SGD can also be a source of hidden fees. Card associations like Visa, MasterCard, and American Express determine their own exchange rates, which often differ from the mid-market rate you see on currency converters.  

Example: Let's say the mid-market exchange rate for USD to SGD is 1 USD = 1.35 SGD. However, your Visa card might use an exchange rate of 1 USD = 1.33 SGD. This seemingly small difference means you're effectively paying slightly more in SGD for every dollar spent in USD.

Why it's hidden: The exchange rate markup isn't presented as a separate fee, making it less obvious to consumers. Instead, consumers need to compare the card association's rate with the prevailing market rate to understand the implicit cost.

How to avoid or minimise credit card overseas charges

Say no to DCC

The most significant way you can minimise credit card overseas charges is to say no to DCC, every single time. You can do so simply by choosing to pay in the local currency, and never in SGD. 

Doing this will allow you to avoid unfavourable forex rates charged by the DCC operators, and the additional currency conversion fee of 1% to 2.8%.

Try not use a cash advance overseas

Cash advances come with costly fees, and are best reserved for emergencies. Better yet, should bring a debit card or ATM card along on your trip, and use it to withdraw cash when necessary. 

The overseas ATM usage fee will be much lower than your cash advance fee. And since you are drawing from your bank account, you won’t have to deal with any credit card interest charges.

Use cards that do not charge foreign currency transaction fees

If you’re really determined not to pay any foreign currency transaction fees or credit card overseas charges, one solution is to use cards that do not have such charges.

For instance, the Trust Card does not charge foreign currency transaction fees, and only the prevailing Visa rate is applied on your transaction. The drawback is you won’t earn any rewards points or air miles which come with other popular travel cards. 

Another way to minimise your foreign transaction fees is to pair your credit card with the Instarem Amaze card. Only Mastercard credit cards are accepted, but you’ll be able to enjoy a lower fee when making overseas purchases. 

Card

Cash rebate/miles earn rate

Details


Citi Rewards Card

 

10X ThankYou Points (4 mpd) on shopping, online shopping, online food delivery, online groceries, Grab and Gojek rides

- S$1,000 spend cap per statement month

- Travel transactions excluded

- S$196.60 annual fee (first year waived)

- No minimum monthly spend


Maybank Family & Friends Card

 

8% monthly cashback on 5 chosen categories per quarter (capped at S$25 each category, up to S$125 per month)

Categories include:

- Groceries 

- Dining & food delivery 

- Transport 

- Data communication & online TV streaming

- Retail & pets 

- Online fashion 

- Entertainment

- Pharmacy

- Beauty & wellness

- Sports and sports apparels 

- Malaysian Ringgit Spend (automatically included on top of your 5 preferred categories)

- Minimum S$800 monthly spend, otherwise 0.3% cashback

- S$181.67 annual fee (first three years waived)


UOB Lady’s Solitaire Card

 

 

10X UNI$ per S$5 spend (4 mpd) on 2 chosen categories:

- Beauty & Wellness

- Fashion

- Dining

- Family

- Travel

- Transport (excluding public transport via amaze)

- Entertainment

1X UNI$ (2 miles) on all other spend

- S$2,000 spend cap (per calendar month)

- UNI$ are calculated in S$5 blocks and rounded down to the nearest whole number

- S$414.20 annual fee (first year waived)

- S$120,000 annual income required

- No minimum monthly spend


UOB Lady’s Card

 

10X UNI$ per S$5 spend (4 mpd) on 1 chosen category:

- Beauty & Wellness

- Fashion

- Dining

- Family

- Travel

- Transport (excluding public transport via amaze)

- Entertainment

 

1X UNI$ (2 miles) on all other spend

- S$1,000 spend cap (per calendar month)

 

- UNI$ are calculated in S$5 blocks and rounded down to nearest whole number

- S$196.20 annual fee (first year waived)

 

- No minimum monthly spend




UOB KrisFlyer Card

 

3 mpd on Singapore Airlines, Scoot, KrisShop, Kris+ purchases, dining, online food delivery, online shopping, online travel, and transport spend (excluding public transport via amaze)

1.2 mpd on all other eligible spend

- Minimum S$800 annual spend must consist of SIA, Scoot, and KrisShop transactions

- Bonus miles are only credited to KrisFlyer membership account two months after card membership year

- S$196.20 annual fee (first year waived)

- No minimum monthly spend

- No transfer fees for KrisFlyer miles


OCBC Rewards Card

 

 

15 OCBC$ (6 mpd) per S$1 spent on on selected retailers per quarter

  • [New!] From 1 April to 30 June 2024, OCBC Rewards Cardholders will earn 6 mpd at Watsons, department stores or duty-free shops.

10 OCBC$ per S$1 spent (4 mpd) on clothes, bags, shoes, and other shopping transactions


 

- 10,000 OCBC$ cap on bonus spend (S$1,110) per month, capped at 120,000 bonus OCBC$ (or about S$12,000 spent on shopping) annually

- Additional 5,000 OCBC$ cap per month on selected retailers

- OCBC$ awarded per S$5 blocks

- S$196.20 annual fee (first two years waived)


Citi PremierMiles Card

 

2 mpd on foreign spend and 1.2 mpd on local spend

- Miles never expire

- 2 free airport lounge passes per year via Priority Pass

- S$196.20 annual fee (first year waived)

- No monthly minimum spend


HSBC TravelOne Card

 

2.4 mpd on foreign currency spend, 1.2 mpd on local spend

- No conversion fee for air miles or hotel points (until 31 Dec 2023)

- 4 complimentary airport lounge access via Dragon Pass for primary cardholders

- S$196.20 annual fee (first year waived)

- No monthly minimum spend


Citi Cash Back Card

 

- 8% cashback on groceries and petrol

- 6% cashback on dining

- 0.25% cashback on all other retail spend

- Cashback capped at S$80 per month

- S$800 minimum monthly spend

- S$196.20 annual fee (first year waived)


Citi Cash Back+ Card

 

- Unlimited 1.6% cashback on all eligible spend

- No cashback cap

- S$196.20 annual fee (first year waived)

Choose credit cards with high rewards for overseas transactions

Travel credit cards offer more miles per dollar for overseas transactions, with no minimum spend or monthly caps. Such cards can help you offset the cost of overseas charges by “clawing back” some value in the form of higher air miles. 

Bear in mind that the more you use your credit card overseas, the more foreign transaction fees you will rack up. Hence, this method may work best with limited credit card use. 

Understand your card's fee structure

Before you travel, carefully review the terms and conditions of your credit card to understand the specific fees associated with overseas transactions. Look for details on foreign transaction fees, currency conversion fees, and any other potential charges.

Pre-load travel debit cards with foreign currency

Consider using a prepaid travel card that allows you to load it with the foreign currency you need before your trip. While you may lose out on potential credit card rewards like points or miles, this can help you lock in a favourable exchange rate and avoid fluctuating conversion fees during your travels.

Keep a close eye on your transactions

To effectively manage your finances and avoid unexpected charges while traveling, it's important to monitor your credit card transactions closely. Regularly review your transaction history through your bank's mobile app or online banking platform, checking each charge against your receipts to ensure the amounts and currencies are correct. 

 

Which credit card doesn’t charge foreign transaction fees?

Card benefit
1-10 points/$
Annual Fee
S$ 196.20
eligible_rewards (7)
Card benefit
0.3-8% cashback
Annual Fee
S$ 196.20
Card benefit
0.4-6 miles/$
Annual Fee
S$ 414.20
Card benefit
0.4-10 miles/$
Annual Fee
S$ 196.20
eligible_rewards (4)
Card benefit
1.2-3 miles/$
Annual Fee
S$ 196.20
eligible_rewards (5)
Card benefit
1 - 15 OCBC$ per dollar
Annual Fee
S$ 196.20
eligible_rewards (4)
Card benefit
1.2-10 miles/$
Annual Fee
S$ 196.20
eligible_rewards (7)
Card benefit
1.2-2.4 miles/$
Annual Fee
S$ 196.20
eligible_rewards (7)
Card benefit
0.2-8% cashback
Annual Fee
S$ 196.20
eligible_rewards (7)
Card benefit
1.6% cashback
Annual Fee
S$ 196.20
eligible_rewards (7)

Frequently Asked Questions (FAQs)

  • Q: Do I get charged for using my credit card abroad?

    Yes. Any credit card transactions made in a foreign currency will be subject to fees. These include the foreign currency transaction fee and currency conversion fee. If you opted for DCC, you will also be charged a fee.

  • Q: Is it expensive to use a credit card overseas?

    Extensive use of a credit card while overseas will incur fees that can add up over time. This can be partially offset by choosing a credit card that has high rewards for overseas transactions. One example is air miles credit cards, which provide a higher miles earn rate on overseas transactions.  

  • Q: How do I avoid international transaction fees on credit cards?

    You can avoid international transaction fees with a credit card that doesn’t charge foreign transaction fees. Otherwise, you can minimise your international transaction fees by refusing DCC and instead pay in the local currency, or by limiting the use of your credit card while overseas.

  • Q: What is Dynamic Currency Conversion (DCC)?

    Dynamic Currency Conversion (DCC) is a service offered by some merchants that allows you to pay for your purchases in your home currency (e.g., SGD) while abroad. While seemingly convenient, DCC often involves unfavorable exchange rates and hidden markups, leading to higher costs.

  • Q: Why should you avoid DCC?

    DCC fees in credit cards should be avoided because it typically results in you paying more for your purchases due to less competitive exchange rates and potential hidden fees imposed by the DCC provider. Opting to pay in the local currency allows your credit card network to handle the conversion at a potentially better rate.

  • Q: What factors affect foreign transaction fees?

    Several factors can influence foreign transaction fees, including your bank, the type of credit card you have, the currency you're using, and the merchant's location. Before you travel overseas, we recommend reviewing your card's terms and conditions to understand the specific fee structure.

    If you want to avoid paying fees, search for which credit card has 0 foreign transaction fees, such as the Trust Card which only charges the prevailing Visa rate on your transactions.

  • Q: Do all credit cards have foreign transaction fees?

    No, not all credit cards have foreign transaction fees. Some cards, particularly those designed for travel, such as the HSBC TravelOne card, offer 0% foreign transaction fees as a key benefit. Be sure to compare different cards and their features before choosing one for overseas use.

  • Q: Can I get reimbursed for foreign transaction fees?

    Generally, foreign transaction fees are not reimbursable. However, some premium credit cards or travel rewards programs might offer occasional promotions or benefits that offset these fees. Check with your bank or card issuer for any potential reimbursement options.

  • Q: Can I earn miles on overseas transaction fees?

    While you typically earn miles or rewards points on your eligible purchases made overseas, you usually don't earn them on the foreign transaction fees themselves. For example, when you use a rewards card like the Citi Rewards credit card overseas, the rewards apply to the actual cost of goods or services purchased, not the fees associated with the transaction.

  • Q: Can foreign transaction fees impact my credit score?

    Foreign transaction fees themselves do not directly impact your credit score. However, if excessive overseas spending leads to high credit card balances and missed payments, it can negatively affect your credit utilisation and payment history, ultimately impacting your credit score.

about_the_author

SingSaver Team

SingSaver Team

At SingSaver, we make personal finance accessible with easy to understand personal finance reads, tools and money hacks that simplify all of life’s financial decisions for you.