Citibank's foreign transaction fees vary by account type and card

Most Citibank debit cards and credit cards charge a foreign transaction fee of 1% to 3% on purchases made outside the United States, currency conversions, and ATM withdrawals abroad. The exact fee depends on which Citibank product you hold. Some Citibank cards charge no foreign transaction fee at all, while others charge fees on top of the exchange rate the bank applies.

The fee is calculated on the transaction amount in U.S. dollars after Citibank converts it from the foreign currency. If you spend 100 euros and Citibank's exchange rate converts that to $110, the foreign transaction fee is calculated on the $110 amount, not the original 100 euros.

Citibank also charges fees when you withdraw cash from ATMs outside the United States. These fees are separate from foreign transaction fees and vary by account type.

Key Takeaways

  • Citibank debit cards typically charge 1% to 3% on foreign transactions, while some premium credit cards charge 0%.
  • The foreign transaction fee applies to the U.S. dollar amount after Citibank converts the currency, not the original amount in the foreign currency.
  • ATM withdrawal fees abroad are charged separately and vary depending on your Citibank account type.
  • Citibank Prestige and some other premium cards waive foreign transaction fees entirely, but these cards may have annual fees.

Foreign transaction fees on Citibank debit cards

Citibank debit cards charge a 1% foreign transaction fee on purchases and ATM withdrawals made outside the United States. This applies to most standard Citibank checking and savings accounts. The fee is added to your account after the transaction posts.

In addition to the 1% foreign transaction fee, Citibank charges an ATM out-of-network fee when you withdraw cash from an ATM that is not part of the Citibank network. This fee is typically $2.50 per withdrawal at domestic out-of-network ATMs, but the amount may differ for international ATMs depending on the ATM operator's fees.

Some Citibank checking accounts, such as the Citibank Basic Banking account, do not waive the foreign transaction fee. You should check your account agreement or contact Citibank directly to confirm the exact fee structure for your specific account type.

Foreign transaction fees on Citibank credit cards

Citibank credit cards fall into two categories: those with foreign transaction fees and those without. Standard Citibank credit cards, such as the Citibank Cashback card, typically charge a 3% foreign transaction fee on purchases made outside the United States and on currency conversions.

Premium Citibank credit cards, including the Citibank Prestige card and Citibank Priority Banking cards, charge 0% foreign transaction fees. These cards do not charge a fee when you make purchases abroad or withdraw cash from foreign ATMs, though the ATM operator may still charge their own fee. Many of these premium cards carry an annual fee that ranges from $95 to $450, depending on the card.

Citibank also offers co-branded travel and airline cards through partnerships. The foreign transaction fee structure for these cards varies, so you should review the card's terms before opening an account.

How Citibank calculates the exchange rate and applies fees

When you make a purchase in a foreign currency, Citibank converts the amount to U.S. dollars using its own exchange rate. This rate is typically set daily and may differ from the mid-market exchange rate (the rate you see on financial news websites). Citibank's exchange rate usually includes a markup of 1% to 2% above the mid-market rate.

The foreign transaction fee is then calculated on top of the converted U.S. dollar amount. For example, if you spend 100 euros and Citibank's exchange rate converts that to $110, and your card has a 3% foreign transaction fee, you would be charged $3.30 in fees (3% of $110). You pay both the exchange rate markup and the foreign transaction fee.

The total cost of a foreign transaction is the sum of the exchange rate markup and the foreign transaction fee. This means the actual cost of your purchase abroad is higher than the amount shown on the merchant's receipt.

ATM fees for cash withdrawals abroad

When you withdraw cash from an ATM outside the United States using a Citibank debit card, you may be charged multiple fees. Citibank charges its own 1% foreign transaction fee on the withdrawal amount. The ATM operator may also charge a fee, which is typically $2 to $5 per withdrawal depending on the country and the ATM network.

Some Citibank accounts offer ATM fee reimbursement for out-of-network withdrawals within the United States, but this benefit does not extend to international ATM withdrawals. You should review your account agreement to see what ATM fee benefits, if any, explore to your account.

Citibank has a network of partner banks in many countries that may allow you to withdraw cash without an ATM operator fee. You can search Citibank's ATM locator on their website to find partner ATMs in your destination country before you travel.

Comparing Citibank fees to other banks

Foreign transaction fees vary widely across banks. Some banks, such as Charles Schwab Bank and certain online banks, charge no foreign transaction fees on any account or card. Other banks charge 1% to 3%, similar to Citibank's standard rates. A few banks charge higher fees of 3% to 4%.

Premium credit cards from other banks, such as American Express Platinum and Chase Sapphire Reserve, also waive foreign transaction fees but typically charge annual fees of $550 or more. Citibank's premium cards charge lower annual fees while offering the same foreign transaction fee waiver.

If you travel frequently or make regular purchases abroad, comparing foreign transaction fees across banks can help you choose an account or card that minimizes your costs. The total cost depends on both the foreign transaction fee and the exchange rate markup the bank applies.

Frequently Asked Questions

Do Citibank credit cards charge foreign transaction fees on online purchases from foreign websites?

Yes. If you make an online purchase from a merchant outside the United States, Citibank treats it as a foreign transaction and charges the foreign transaction fee. The fee applies even if the website is in English or the company is U.S.-based but processes the transaction through a foreign payment processor.

Can I avoid Citibank's foreign transaction fees by using a different payment method?

You can reduce fees by using a Citibank credit card or debit card that charges 0% foreign transaction fees, such as the Citibank Prestige card. You could also use a different bank's card that charges lower or no foreign transaction fees. Some travelers use local currency or traveler's checks, but these methods often have their own fees and less favorable exchange rates.

Does Citibank charge foreign transaction fees on transfers between my own accounts?

No. If you transfer money between two Citibank accounts you own, no foreign transaction fee applies. However, if you use a debit card or credit card to make the transfer, the foreign transaction fee may explore depending on how the transfer is processed. Contact Citibank directly to confirm the fee structure for your specific transfer method.

What happens if I dispute a foreign transaction with Citibank?

If you dispute a foreign transaction, Citibank will investigate the charge. If the dispute is resolved in your favor, Citibank will reverse the transaction amount and the foreign transaction fee. The process typically takes 30 to 60 days. You should report disputed transactions to Citibank as soon as you notice them.

Are there Citibank accounts with no foreign transaction fees?

Citibank does not offer a standard checking or savings account with no foreign transaction fees. However, Citibank Prestige and other premium credit cards charge 0% foreign transaction fees. Some Citibank accounts may offer limited fee waivers for specific types of transactions, so you should review your account agreement or contact Citibank to confirm what applies to your account.