Discover Card Foreign Transaction Fees [2024 Guide]
Discover offers cash back credit cards, travel credit cards, student and secure credit cards. Each card has its own features and fees – but the good news is that all cards come with no Discover foreign transaction fee to worry about.
However, that doesn’t mean Discover cards are free to use overseas, necessarily. This guide covers all you need to know about Discover card international fees, limits, and exchange rates.
As Discover isn’t the most popular network in some countries and regions we’ll also introduce Wise and Revolut as alternatives with almost globally accepted cards, flexible multi-currency accounts, low transaction fees and great exchange rates.
Table of contents
- Does Discover work internationally?
- Does Discover have foreign transaction fees?
- International ATM fees
- Discover exchange rates
- Discover card alternatives
- Foreign transaction limits
- How to avoid foreign transaction fees when traveling
Does Discover work internationally?
Discover cards can be used internationally in any location displaying the Discover logo. This applies to both making purchases with merchants and withdrawing cash from ATMs.
It’s important to note that Discover may not be as widely accepted in some regions as it is in the United States. If you’re planning to travel, it’s a good idea to check beforehand whether Discover is a popular card network in your destination.
The Discover website offers insights into network coverage that may help. Some countries are categorized as having high Discover acceptance – but others, including common destinations like Canada and Mexico, and major European economies like Germany, are in the lower bracket of ‘growing’ acceptance. That means it’s advisable to carry an extra payment method or two, including cards from other networks like Visa and Mastercard, just in case you encounter situations where paying with Discover may be difficult while you’re away.
Remember that even if your Discover card is accepted at your destination, it may not be the most cost-effective option due to cash advance fees, interest and late payment fees if you don’t clear your bills on time, every time. We’ll provide a more detailed explanation of these fees shortly and offer helpful tips on how to minimize or avoid them while traveling.
How does Discover compare on international fees?
So there’s no Discover card foreign transaction fee but what about Discover international fees more broadly? Here’s a handy overview of Discover against a couple of alternative providers – Wise and Revolut, and a major US bank – Bank of America, to see how the international fees can vary across different services.
| Provider/Service | Exchange rate | Foreign transaction fee | International ATM fee | Other costs to watch out for |
|---|---|---|---|---|
| Discover | Discover exchange rate | No foreign transaction fee | Typically a 10 USD or 5% cash advance fee (whichever is higher) | Credit cards have interest, late payment fees and penalties if you don’t repay in full |
| Wise | Mid-market exchange rate | No foreign transaction fee – currency exchange from 0.41% Free to spend from any currency you hold. | 2 free withdrawals to 100 USD/month free, then 1.5 USD + 2% | 9 USD card order fee |
| Revolut | Mid-market exchange rate to plan limit | 0.5% fair usage fee once plan limit is exhausted. 1% out of hours fee may apply. No-fees applies when spending from currencies you hold. | No-fee withdrawals to plan limit, 2% after that | Monthly fees may apply to your account, depending on the tier you select |
| Bank of America | Bank of America, or card network exchange rate | Varied between different cards – 3% for most debit cards, and many credit cards Some no foreign transaction fee credit cards do exist | Varied between different cards – some fee free ATMs are available internationally for debit card withdrawals With credit cards, there’s typically a 3% cash advance fee | Cards may have annual fees Credit cards have interest, late payment fees and penalties if you don’t repay in full |
There’s no one best card or provider for everyone, and different options come with their own international features and fees to suit different customers. Whichever you pick, it’s important in particular to pay attention to fees that are calculated based on a percentage of your spending.
Although the percentage may appear small, when applied to every dollar you spend while traveling, the total amount can accumulate rapidly. We’ll cover more on this and the providers we’ve picked out here, in a few moments.
Does Discover have foreign transaction fees?
There’s no Discover currency conversion fee or foreign transaction fee when you spend with your card overseas. However, other costs may apply to your card. Discover splits its credit cards into different categories, depending on whether you’re looking for a card to earn cash back or travel perks, or a student or secured card option.
To help you figure out which may be best for you, here are the key international and ongoing costs for 3 popular Discover cards:
| Discover Card | Foreign transaction fees and exchange rates | Maintenance fees and interest | Rewards |
|---|---|---|---|
| Discover it Cash Back | No foreign transaction fee Exchange rate set by Discover | No annual fee Variable interest from 16.74% – 27.74% Cash advance interest: 29.74% | 5% cash back on every day spending at a rotating array of merchants, 1% on other eligible spend |
| Discover it Chrome | No foreign transaction fee Exchange rate set by Discover | No annual fee Variable interest from 16.74% – 27.74% Cash advance interest: 29.74% | 2% cash back at gas stations and restaurants, 1% on other eligible spend |
| Discover it Miles | No foreign transaction fee Exchange rate set by Discover | No annual fee Variable interest from 16.74% – 27.74% Cash advance interest: 29.74% | 1.5x miles for every dollar spend |
Discover doesn’t have any foreign transaction fee or annual fee for its core products. That can mean it’s cheaper to spend internationally with a Discover card compared to a card which has a foreign transaction fee – as standard foreign transaction fees can run up to 3% or so on every dollar you spend.
However, as Discover primarily offers credit cards, you may still run into some other fees, such as cash advance fees when you use an ATM, interest and penalties. Depending on your credit score, Discover may not offer the most competitive interest on the market.
One way to avoid the worry of interest payments and penalties is to pick a debit card instead, from a specialist like Wise or Revolut. There’s no foreign transaction fee to pay, and both providers offer multi-currency holding options to make travel and overseas spending convenient.
Discover international ATM fees
Discover doesn’t charge a specific ATM fee, but as soon as you withdraw cash you’ll need to pay a cash advance fee instead. This can be pretty high – and on top of that, the ATM operator might add their own fee. Keep an eye on the ATM screen to check if this is the case when you make a withdrawal.
It’s also helpful to look at your card terms and conditions to see if the interest you pay for cash advances is higher compared to card purchases. This is often the case – plus, interest may start to accrue immediately after the withdrawal, with no grace period as you may get with card purchases.
Here’s a comparison of the cards featured above, and the fees you’ll pay when using an ATM:
| Discover card type | Cash Advance fee at an ATM | Foreign transaction fee | ATM operator fee |
|---|---|---|---|
| Discover it Cash Back | 10 USD or 5% cash advance fee (whichever is higher) 29.74% APR for cash advances | No fee | Varies by country and operator |
| Discover it Chrome | 10 USD or 5% cash advance fee (whichever is higher) 29.74% APR for cash advances | No fee | Varies by country and operator |
| Discover it Miles | 10 USD or 5% cash advance fee (whichever is higher) 29.74% APR for cash advances | No fee | Varies by country and operator |
Here’s a quick reminder of the alternative providers we looked at earlier, compared to the Discover ATM fees:
- Discover (credit cards): 10 USD or 5% cash advance fee (whichever is higher)
- Wise card: 2 free withdrawals to 100 USD/month free, then 1.5 USD + 2%
- Bank of America (credit cards): Usually a 3% cash advance fee
- Revolut card: No-fee withdrawals to plan limit, 2% after that
Discover exchange rates
When you spend in a foreign currency, the amount you pay is converted back to dollars using the Discover exchange rate. It helps to know that the actual rate used may be the live Discover exchange rate on the day your purchase is processed, rather than the day you physically tap or insert your card.
You might find that Discover exchange rates aren’t the same as the rate you find on Google for your currency pair, as they may include a small markup on the mid-market exchange rate. That’s common practice, but can make it harder to calculate what you’ll pay when your foreign currency spending is finally added up to produce your USD bill at the end of the month.
Some providers, like Wise and Revolut, split out the costs of currency exchange and use the mid-market rate for conversion, according to the account plan you hold. That can be more transparent and easier to see exactly what you’re spending every time.
Discover card alternatives
Discover is a pretty good option for international spending as there’s no foreign transaction fee to worry about. However, as the Discover network isn’t as common in many parts of the world as it is in the US, it makes sense to also have another card or two on a different network. Pick the right card option and this could also help you to cut down on foreign transaction fees and get better overall currency exchange rates.
Here are a few Discover card alternatives to consider:
| Wise | Revolut | AmEx | Bank of America | |
|---|---|---|---|---|
| Card types | Debit | Debit | Debit and credit | Debit and credit |
| Card order fee | 9 USD | No fee | No fee | No fee |
| Monthly/annual fee | None | Monthly fees may apply depending on account tier | Varied by card type | Annual fees may apply depending on the card you select |
| Currencies supported | 40+ currencies for holding and exchange Spend in 170+ countries | 25+ currencies for holding and exchange Spend in 150+ currencies | USD only for bill calculation Spend globally wherever network is accepted | USD only for bill calculation Spend globally wherever network is accepted |
| Foreign transaction fee | None | None | Varied by card type – some cards have no foreign transaction fees, others have fees of around 2.5% – 3% | 3% for debit cards, and many credit cards Some credit cards with no foreign transaction fee are available |
| ATM fee | 2 free withdrawals to 100 USD/month free, then 1.5 USD + 2% | No-fee withdrawals to plan limit, 2% after that | Typically a 10 USD or 5% cash advance fee (whichever is higher) | With credit cards, there’s typically a 3% cash advance fee |
| Exchange rate | Mid market rate, currency exchange from 0.41% | Mid market rate to plan limit, 0.5% fair usage fee after that | Network rate | Network rate |
Spending and making cash withdrawals with a card when you’re overseas is often the most convenient and secure way to access foreign currencies – and certainly smarter than carrying a large stack of foreign bills with you. However, the card you pick can make a big difference to the overall costs of your spending and withdrawals.
Credit card cash advance fees – for example – can push up the cost of getting cash a lot, while there are also interest charges to think about. Debit cards can be cheaper – but you can’t then spread the costs of your purchases over several months. Which is best for you depends on how you like to manage your personal finances – to help you pick, we’ll look at each of these Discover alternatives in a bit more detail next.
Wise
- Best for: Holding 40+ currencies, with mid-market exchange rates and a linked card for spending in 170+ countries
- Foreign Fees & Exchange Rates: Free to spend any currency you hold, mid-market currency exchange with fees from 0.41%
- Is it safe to use internationally? Yes – Wise is a large, well regulated and trusted specialist provider
You can open a Wise account online or in the Wise app. It allows you to hold 40+ currencies, send payments to 70+ countries, and use your linked Wise card in 170+ countries.
Every month, you’ll enjoy some fee-free cash withdrawals, and after that, there are low fees when you use an ATM. As a bonus, you can also receive money from overseas easily – and often for free – using your own local bank details in 10 currencies.
Revolut
- Best for: Different account plan tiers, with 25+ supported currencies and some no-fee currency exchange every month
- Foreign Fees & Exchange Rates: No-fees applied to spend any currency you hold, mid-market currency exchange to plan limit, with a 0.5% fee after that
- Is it safe to use internationally? Yes. Revolut is licensed and regulated around the world, and delivers services safely
With Revolut, you have the option to sign up for an account without any monthly fees or upgrade to a paid account with additional features and benefits. Regardless of the account type, all accounts offer some monthly currency exchange using the mid-market exchange rate, with a fair usage charge of 0.5% once you hit your account limits. There may be out-of-hours fees if you convert currencies during weekends or when markets are closed.
American Express
- Best for: Broad selection of card options including no foreign transaction fee credit cards, and cards to earn rewards and cash back
- Foreign Fees & Exchange Rates: Cash advance fees of around 5% usually apply to use an ATM, exchange rates are set by AmEx
- Is it safe to use internationally? Yes. AmEx is a reputable and popular service, although the network isn’t as popular in some regions as others, so it’s worth checking your destination ahead of time
American Express has a great range of credit cards, including a handful with no annual fee and others with no foreign transaction fee to pay. There are also cards with significant opportunities to earn rewards and cash back, including travel optimized cards which have great perks like lounge access and free insurance. As with all credit cards, you’ll still have to pay interest charges if you don’t settle your bill in full every period.
Bank of America
- Best for: Well supported bank with credit and debit cards, including some credit cards with no foreign transaction fees and great travel perks
- Foreign Fees & Exchange Rates: Cash advance fees of around 3% usually apply to use an ATM, exchange rates are set by the card network (Visa or Mastercard for example)
- Is it safe to use internationally? Yes. Bank of America is fully licensed and regulated, and safe to use
As you’d expect from a big bank like Bank of America, there’s a broad range of cards to pick from, including credit and debit cards. All debit cards have a 3% foreign transaction fee, but there are some credit cards with fewer international charges. However, in this case you might pay a higher annual fee in return for the extra perks. Weigh up any annual fee against the discounts and benefits you’ll get from your card before you sign up.
Discover card foreign transaction limits
Discover cards have differing credit limits depending how you match eligibility criteria, including your credit score. Before you apply you can usually complete an online credit check which doesn’t impact your actual credit score, and which can show if you’re likely to be approved for a new card.
How to avoid foreign transaction fees when traveling
Using a Discover card with no foreign transaction fee can be a good way to cut the costs of spending in foreign currencies. However, there are still other fees to watch out for, especially if you need to get cash from an ATM.
As an alternative you could also get a no foreign transaction fee card from a provider like Wise or Revolut, to use when getting cash and spending supported currencies overseas.
Here are a few other tips to make life easier, and keep down the costs of international spending:
- Take the time to read your card’s terms and conditions, to confirm the fees for overseas spending and withdrawals
- Opt to pay in the local currency wherever you are to avoid dynamic currency conversion
- You should always confirm to Discover that you’ll be abroad, to avoid your card being blocked by their anti-fraud measures – you can do this by logging into your account online
- Check your Discover card will be accepted – look for the Discover, Union Pay or Diners Club logo that’s usually displayed prominently
- Make sure to pay your bills promptly to avoid incurring late payment fees from Discover
Conclusion: Discover foreign transaction fees
Discover is known as a good credit card for travel, as cards have no foreign transaction fees to pay when you spend in foreign currencies. That can mean they;re cheaper than competing credit cards for overseas use – but it doesn’t necessarily mean they’re free. Other fees, such as cash advance fees at ATMs still apply – and Discover isn’t the most globally accepted network either.
To be on the safe side, it’s worth having a second card on hand, issued on a different network, just in case the merchant you’re using can’t take Discover. Pick the right card, and this could even work out cheaper for you, too.
Compare Discover against options like Wise and Revolut for multi-currency accounts and cards with dozens of supported currencies and cards you can use more or less globally. You can also get some fee free ATM withdrawals every month, and currency exchange with the mid-market rate – so you can do more with your money while you’re away.
FAQs on Discover overseas transaction fees
Does Discover have foreign transaction fees?
Discover cards have no foreign transaction fees. Other international fees may still apply, such as cash advance charges of 5% or so when you use an ATM.
Is Discover card accepted everywhere internationally?
No. Discover can be used internationally,but it isn’t as popular in some regions as it is in the US. It makes sense to check the service in your destination in advance and to have another payment method – such as a card on a different network from Wise or Revolut – to cut overall fees, and just in case you can’t use your Discover in a specific merchant or ATM.
Do you have to notify Discover when you travel?
Yes. You should inform Discover of your travel by logging into your account online and setting up a travel notification. It’s also a smart move to make sure your contact details are all up to date with them should they need to get in touch while you’re away.
Can I use my Discover card internationally without fees?
When you use Discover overseas there are no foreign transaction fees to pay – but other charges such as cash advance fees and interest still apply.
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