CAPITAL ONE FOREIGN CURRENCY

Planning an international trip? Foreign ATM fees can be a bigger cost than you might have realized. Some fees can be as high as $5 per transaction, plus around 3% of the amount you re withdrawing. To get you started, one of the best ways to bring money overseas is to exchange some currency at home before you board your flight.Or perhaps you're making purchases from overseas vendors?Understanding how your credit card handles foreign currency transactions is crucial to avoid unexpected fees and maximize your spending power. Capital One Financial Corporation does offer currency exchange services that allow you to hold foreign cash. It also has a digital cross-border payment platform for making payments in foreign currencies and for saving foreign-denominated bank notes.When it comes to Capital One foreign currency matters, there's good news: Capital One generally stands out as a traveler-friendly option.Unlike many other credit card issuers, Capital One doesn't charge foreign transaction fees on any of its U.S.-issued credit cards, or on spending with your Capital One 360 debit card.This can translate to significant savings compared to cards that levy a 1% to 3% fee on every purchase made abroad. Capital One charges the following fees per transaction on international payments from the United States: Payment fee: $40 per transfer if the wire is in foreign currency (the foreign recipient gets foreign currency) and $50 per transfer if the wire is in U.S. dollars (the foreign recipient gets U.S. dollars).But while Capital One eliminates the foreign transaction fee hurdle, there are still nuances to understand, from exchange rates to dynamic currency conversion.This comprehensive guide dives deep into how Capital One handles foreign currency, providing you with the knowledge to make informed decisions and enjoy worry-free international spending.We'll explore everything from using your card directly for purchases to understanding exchange rates, potential ATM fees, and comparing Capital One's services with other popular options like Wise and Revolut.Let's get started on your journey to savvy international spending!

Capital One's Foreign Transaction Fee Policy: The Good News

The most appealing aspect of using a Capital One card abroad is the absence of foreign transaction fees.Many credit card issuers charge a percentage of each transaction made in a foreign currency or outside the United States. Does Capital One 360 charge foreign transaction fees? No, Capital One 360 does not charge foreign transaction fees for debit card transactions abroad. However, transactions made in foreign currencies or classified as cross-border by MasterCard may be subject to certain conditionsThese fees, typically ranging from 1% to 3%, can quickly add up, especially on larger purchases or extended trips. Do all Capital One cards have no foreign transaction fee? Both the Capital One Savor and the SavorOne cards have no fees for transactions in a foreign currency. In fact, none of Capital One s US-issued credit cards have foreign transaction fees.⁴. Can you use Capital One internationally? The Capital One Savor card is only available for USCapital One, however, has eliminated these fees, making its cards a compelling choice for international travelers and those who frequently shop with international vendors. Capital One uses the network exchange rate to convert your foreign currency spending back to USD, either to deduct the amount from your checking account, or to create your credit card bill. The rate used may be the network exchange rate on the day your purchase is processed, which can be a day or two after you physically tap or insert your card.This policy applies to all Capital One U.S.-issued credit cards, including popular options like the Capital One Venture X, Capital One Venture, Capital One Quicksilver, and Capital One Savor cards.

Understanding Exchange Rates with Capital One

While Capital One waives foreign transaction fees, the exchange rate still plays a crucial role in determining the final cost of your international purchases.Capital One uses the network exchange rate set by Visa or Mastercard on the date your purchase is processed. A currency conversion fee is charged by the credit or debit card payment network or ATM network for converting the foreign currency to your home currency. This has to happen so that the card issuer can process it and charge it to your account. Capital One doesn t charge foreign transaction or currency conversion fees.This rate may fluctuate slightly from the rate you see on currency converter websites at the moment of the transaction.It's important to note that the processing date can be a day or two after the actual transaction date, so the exchange rate applied might not be exactly what you anticipated.

How Capital One Converts Foreign Currency

When you make a purchase in a foreign currency, Capital One automatically converts it to U.S. dollars.The conversion rate applied is the Visa or Mastercard exchange rate in effect on the processing date. Here is how to get foreign currency with your Capital One Venture card: Use it directly for purchases: Capital One Venture has a $0 foreign transaction fee, so your best option is to simply use it directly to make purchases while abroad. Just make sure you decline a merchant s offer to convert your credit card transaction from the localCapital One does not add any additional currency conversion fees on top of this exchange rate. Compare live Capital One exchange rates across the most popular world currencies. Find out how much it costs for an international money transfer with Capital One and how long a transfer would take.This transparency allows you to avoid the hidden costs that can sometimes accompany international transactions.

Example: Let's say you purchase a souvenir in Paris for €50. Capital One Bank offers a range of foreign currency exchange services that can help you manage your international transactions. You can exchange currencies online or through the Capital One Mobile app. This is convenient if you're traveling or need to send money abroad.If the Visa exchange rate on the processing date is 1 EUR = 1.10 USD, Capital One will convert the €50 to $55 (50 x 1.10). The Capital One credit card exchange rate is the Visa or Mastercard exchange rate on the date a purchase is made, depending on the Capital One credit card. While credit card currency exchange costs normally include foreign transaction fees, too, none of Capital One s credit cards have these fees.You'll only see a $55 charge on your Capital One statement, with no added foreign transaction fee.

Capital One 360 and International Debit Card Use

Capital One's fee-friendly approach extends to its 360 checking accounts.Capital One 360 does not charge foreign transaction fees for debit card transactions made abroad. When using Capital One credit cards abroad or with international online merchants, you benefit from the Visa or Mastercard exchange rate without extra currency conversion fees. This is great since such fees usually add about 1% to transactions.This means that when you use your Capital One 360 debit card to make purchases or withdraw cash from ATMs in foreign countries, you won't incur any foreign transaction fees from Capital One. Foreign transaction fees are charges that some credit card issuers add to transactions made outside the U.S. or with foreign merchants. They can apply to purchases, withdrawals and more. The fee can be made up of smaller charges by the credit card network as well as the credit card issuer.However, it's essential to be aware of potential ATM fees charged by the ATM operator, which we'll discuss in more detail later.

Avoiding Dynamic Currency Conversion (DCC)

One potential pitfall to watch out for when using your Capital One card abroad is Dynamic Currency Conversion (DCC). Plus you ll get access to Capital One Travel. Check out some popular Capital One cards for international travel: Capital One Venture X: This card lets cardholders earn double miles on every purchase and even more on every trip. It has an annual fee, but it doesn t charge foreign transaction fees.DCC is a service offered by some merchants that allows you to see the purchase price converted to your home currency (U.S. dollars) at the point of sale.While this might seem convenient, it often comes at a cost.

Merchants offering DCC typically use a less favorable exchange rate than Visa or Mastercard, and they may also add a markup on top of the exchange rate.This can result in you paying more for your purchase than if you had simply paid in the local currency and allowed Capital One to handle the conversion using the standard Visa/Mastercard exchange rate.

How to Avoid DCC:

• Always choose to pay in the local currency: When presented with the option to pay in USD or the local currency, always select the local currency.
• Decline the conversion: If a merchant pushes the DCC option, politely decline and insist on paying in the local currency.

Using Your Capital One Card for Cash Withdrawals Abroad

While using your Capital One credit card for purchases abroad is generally fee-free, withdrawing cash from ATMs can be a different story.While Capital One doesn’t charge a foreign transaction fee on cash withdrawals with your Capital One 360 debit card, ATM operators may impose their own fees.These fees can include:

• ATM usage fees: Charged by the ATM operator for using their machine.
• Foreign ATM fees: Charged by the ATM operator specifically for using an ATM outside of your bank's network or in a foreign country.

To minimize ATM fees, consider these strategies:

• Use ATMs within Capital One's partner networks: Check if Capital One has partnerships with any ATM networks in the countries you're visiting. For 360 products (360 Checking, Money, etc.) there are no additional fees when you use your debit card abroad (any transaction made in a foreign currency or that MasterCard classifies as a cross-border transaction).Using ATMs within these networks may reduce or eliminate ATM usage fees.
• Withdraw larger amounts less frequently: Instead of making multiple small withdrawals, withdraw a larger sum of cash at once to reduce the number of ATM transactions and associated fees. Capital One issues Visa and Mastercard credit cards, which makes them great for international use, because they're accepted pretty much anywhere in the world. Furthermore, Capital One does not charge a fee for using your credit card for foreign currency transactions. Do all Capital One cards have no foreign transaction fee?However, be mindful of security and avoid carrying large amounts of cash unnecessarily.
• Consider a debit card with ATM fee reimbursement: Some banks and credit unions offer debit cards that reimburse ATM fees, even those charged by foreign ATM operators.

Ordering Foreign Currency Before Your Trip: Is it Necessary?

While Capital One doesn't offer a traditional foreign currency exchange service where you can readily buy and sell foreign cash at a branch, you generally don't need to exchange a lot of currency before your trip.The prevalence of credit card acceptance worldwide makes it easy to rely primarily on your Capital One card for purchases.Also, Capital One Financial Corporation does offer a digital cross-border payment platform for making payments in foreign currencies and for saving foreign-denominated bank notes.

However, having some local currency on hand can be useful for:

• Small purchases: Tipping, buying snacks from street vendors, or paying for transportation in situations where cards aren't accepted.
• Emergencies: Having a backup source of funds in case your card is lost, stolen, or temporarily blocked.
• Countries with limited card acceptance: In some countries, particularly in rural areas, cash is still the dominant form of payment.

If you do decide to order foreign currency, consider these options:

• Your local bank or credit union: Many banks and credit unions offer foreign currency exchange services. While credit card exchange rates normally also include foreign transaction fees, the Capital One Venture credit card does not charge foreign fees. This means the Capital One Venture credit card will save cardholders 1.57% on purchases made abroad and through international merchants, compared to the average credit card offer.Compare their exchange rates and fees with other options.
• Online currency exchange services: Companies like Travelex and Currency Exchange International offer online currency exchange with options for delivery or in-person pickup.
• Airport currency exchange kiosks: These kiosks are often the least favorable option, as they tend to have the worst exchange rates and highest fees.Avoid using them if possible.

Capital One Travel Portal: Leveraging Rewards for International Travel

Many Capital One cards, such as the Venture X and Venture cards, offer access to the Capital One Travel portal. Learn how Capital One handles foreign transaction fees on its cards when extra charges apply and how to choose the right card for international spending.This online platform allows you to book flights, hotels, and rental cars using your Capital One rewards miles.Booking through the Capital One Travel portal can be a convenient way to redeem your rewards and potentially save money on your international travel expenses.

Benefits of using the Capital One Travel portal:

• Earn bonus miles: Some bookings made through the portal may earn you bonus miles on top of your regular rewards rate.
• Price Match Guarantee: Capital One offers a price match guarantee on flights and hotels, ensuring you get the best possible deal.
• 24/7 customer support: Access to dedicated customer support for assistance with your travel bookings.

Comparing Capital One with Other International Payment Options

While Capital One offers a compelling package for international spending, it's worth comparing it with other options to determine the best fit for your needs.

Capital One vs. You can use Capital One to exchange your US dollars for euros before you travel to Europe. We take a look at everything you need to know, including exactly how to make your euro order and any fees or costs you need to understand.Wise (formerly TransferWise)

Wise is a popular online platform for international money transfers and multi-currency accounts.Wise offers transparent fees and typically uses mid-market exchange rates, which are often more favorable than those offered by banks. Before you buy something in a foreign currency, let us work out the total cost of using your Capital One card. That way, you can see if there's a cheaper way to pay. You can also check previous transactions going back 365 days.Wise can be a good option for sending money abroad or holding balances in multiple currencies.

When to choose Wise over Capital One:

• Sending large sums of money abroad: Wise often offers better exchange rates and lower fees for larger international money transfers.
• Holding balances in multiple currencies: Wise's multi-currency account allows you to hold and manage funds in various currencies, which can be useful for frequent travelers or those who need to make payments in different currencies regularly.

Capital One vs.Revolut

Revolut is another popular fintech platform that offers multi-currency accounts, debit cards, and international money transfers. How does Capital One compare on international fees? Here s a handy overview of Capital One 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.Revolut also provides access to commission-free stock trading and other financial services.

When to choose Revolut over Capital One:

• Accessing interbank exchange rates: Revolut offers interbank exchange rates (the rates banks use to trade with each other) for currency conversions during market hours.This can result in significant savings compared to the exchange rates offered by credit card networks.
• Budgeting and expense tracking: Revolut offers robust budgeting and expense tracking tools, allowing you to monitor your spending in real-time and set spending limits.

Capital One vs. Capital One doesn t charge foreign transaction fees or pass on currency conversion fees to its customers. View important rates and disclosures. Other issuers might. Dynamic currency conversion is another potential fee. Merchants offer this optional service to convert the price in JPY to U.S. dollars right at the point of purchase.Bank of America

Bank of America, like many traditional banks, typically charges foreign transaction fees on its credit cards and debit cards.While Bank of America may offer some international banking services, Capital One's no-foreign-transaction-fee policy makes it a more attractive option for international travelers.

When to choose Capital One over Bank of America:

• Avoiding foreign transaction fees: Capital One's no-foreign-transaction-fee policy can save you a significant amount of money compared to Bank of America's cards that charge these fees.

Capital One Business Cards and International Spending

The benefits of no foreign transaction fees extend to Capital One's business credit cards as well. Here's everything you need to know about exchanging currency from where you can go to what you'll need to place an order. The following 15 banks and credit unions exchange foreign currency.If you're a business owner who frequently travels internationally or makes purchases from foreign suppliers, a Capital One business card can help you save money on transaction fees.

Popular Capital One business cards with no foreign transaction fees include:

• Capital One Spark Miles for Business
• Capital One Spark Cash Plus

Do All Capital One Cards Have No Foreign Transaction Fees?

Yes, all U.S.-issued Capital One credit cards do not have any foreign transaction fees. Capital One doesn t charge a fee for using your card for foreign currency transactions. View important terms and disclosures. But other credit cards might. If you use a card abroad, you should also watch out for dynamic currency conversion (DCC) fees. Merchants might offer to convert the foreign price to your home currency.This consistent policy across their card portfolio makes Capital One a reliable choice for international spending, regardless of which specific card you choose.

Informing Capital One of Your Travel Plans

While it was once common practice to notify your credit card issuer of your travel plans to avoid potential card blocks, Capital One generally doesn't require a travel notice.However, it's always a good idea to double-check with Capital One before your trip to ensure that your card will work seamlessly abroad.

What If My Capital One Card is Lost or Stolen Abroad?

If your Capital One card is lost or stolen while you're traveling, it's crucial to report it to Capital One immediately.You can do so by calling the number on the back of your card or by using the Capital One Mobile app.Capital One will typically cancel your lost or stolen card and issue a replacement as quickly as possible. When taking out smaller amounts of money, a 3% foreign transaction fee is far preferable to a $3 ATM fee. But if you need to withdraw hundreds of dollars outside of the U.S, you should look for a debit card with no foreign transaction fees on ATM withdrawals and purchases. This includes debit cards from Capital One, Charles Schwab and Discover.Also be sure to file a police report, this will help protect you from fraudulent charges.

Conclusion: Capital One - A Solid Choice for International Transactions

In conclusion, Capital One offers a compelling proposition for anyone who spends money in foreign currencies.The absence of foreign transaction fees on all U.S.-issued credit cards and Capital One 360 debit cards makes it a cost-effective choice for international travelers and those who shop with international vendors. Capital One doesn t charge foreign transaction or currency conversion fees for payments outside the US or in different currencies.⁷ However, you ll still need to exchange your money from US dollars to euros and you may not know exactly how much this will cost until you come to make your transaction.By understanding how Capital One handles exchange rates, avoiding Dynamic Currency Conversion, and minimizing ATM fees, you can maximize your savings and enjoy worry-free international spending. If you make a transaction in a foreign currency, we automatically convert it into a U.S. dollar amount. The conversion rate in effect on the processing date may differ from the rate in effect on the transaction date that appears on your statement. We do not adjust the currency exchange rate or charge any currency conversion Fees.While alternative platforms like Wise and Revolut may offer specific advantages for certain types of international transactions, Capital One's simplicity, widespread acceptance, and lack of foreign transaction fees make it a strong contender for your international spending needs. Capital One doesn t charge foreign transaction fees on its credit cards, or on spending with your Capital One 360 debit card . However, when you re abroad, you may still end up paying more than you d expect thanks to the way banks work out what exchange rates to offer you.Remember to always pay in the local currency when given the choice and to monitor your transactions regularly for any unauthorized activity.With these tips in mind, you can confidently use your Capital One card to explore the world or make international purchases without the burden of excessive fees. If you need cash, order foreign currency from your bank before you travel. Capital One Savor Cash Rewards Credit Card. NerdWallet Rating Read Review. Annual fee. $95. $95. $0. Annual fee. EarnSo, go ahead and plan that trip or make that international purchase, knowing that Capital One has your back!