Discover does not charge foreign transaction fees on any of its credit cards

Discover cards carry no foreign transaction fee, regardless of which Discover card you hold or where in the world you use it. When you make a purchase in another country or with a merchant that bills in a foreign currency, Discover does not add a percentage fee on top of the transaction amount. This applies to both purchases and cash advances.

The lack of a foreign transaction fee is one of the few ways Discover's pricing differs from Visa and Mastercard networks. Most major credit cards from other issuers charge between 1% and 3% on top of any foreign purchase. Discover's policy means you pay only the exchange rate Discover applies, with no additional markup.

Key Takeaways

  • Discover cards do not charge a foreign transaction fee on purchases made outside the United States or in foreign currencies.
  • You still pay an exchange rate when you use your card abroad, but Discover does not add a percentage fee on top of that rate.
  • Cash advances with a Discover card abroad may carry a different fee structure than purchases, so check your card terms before withdrawing money.
  • Not all merchants outside the United States accept Discover cards, so having a backup card from Visa or Mastercard is often necessary when traveling.

How the exchange rate works without a foreign transaction fee

When you use your Discover card outside the United States, Discover converts the foreign currency amount to U.S. dollars using an exchange rate. That rate is set by Discover and applied to your transaction. You are charged only that converted amount — no additional percentage is added as a "foreign transaction fee."

The exchange rate Discover uses is typically close to the mid-market rate (the rate banks use with each other), but it is not identical to it. Discover's markup on the exchange rate itself is built into the rate they quote, but this is different from a separate foreign transaction fee. You have no way to avoid the exchange rate conversion, but you avoid the extra percentage fee that other card networks charge.

Cash withdrawals and other fees that may still explore

While Discover does not charge a foreign transaction fee on purchases, cash advances at ATMs outside the United States may carry different fees. Discover typically charges a cash advance fee (usually a percentage of the amount withdrawn, with a minimum dollar amount) when you use an ATM abroad. This fee is separate from any foreign transaction fee and applies whether you are in the United States or outside it.

The ATM operator in the foreign country may also charge you a fee for using their machine. This is not a Discover fee — it comes from the bank or ATM network that owns the machine. You will usually see this fee disclosed on the ATM screen before you complete the withdrawal, giving you a chance to cancel.

Discover acceptance outside the United States

Discover's lack of a foreign transaction fee is useful only if merchants accept your card. Outside the United States, Discover is accepted far less widely than Visa or Mastercard. In Europe, Asia, and many other regions, you may find that Discover is not accepted at all, or only at certain large retailers and hotels.

For this reason, travelers should carry at least one Visa or Mastercard as a backup, even if they want to use Discover for the foreign transaction fee advantage. Check with your card issuer before traveling to learn which countries and regions have the best Discover acceptance.

Comparing Discover to Visa and Mastercard foreign fees

Visa and Mastercard both allow their member banks to charge foreign transaction fees. Most Visa and Mastercard issuers charge between 1% and 3% on top of the exchange rate for purchases made abroad. Some premium cards waive this fee, but standard cards almost always include it.

American Express, another major card network, also typically charges a foreign transaction fee on standard cards, though some premium American Express cards waive it. Discover's blanket policy of no foreign transaction fees on any card is simpler than the approach taken by other networks, where the fee depends on which specific card you hold and which bank issued it.

What to do before traveling with your Discover card

Before you travel, contact Discover to let them know you will be using your card abroad. Discover may flag foreign transactions as fraud if they are unexpected, which can result in your card being declined. A quick call to the customer service number on the back of your card can prevent this.

Ask Discover about cash advance fees in the specific countries you are visiting, since these fees can vary. Also confirm that your card will work with the payment systems used in your destination — for example, some countries rely heavily on chip-and-PIN technology or contactless payments, and older Discover cards may not support all of these methods.

Frequently Asked Questions

Do I pay an exchange rate fee when I use Discover abroad?

You pay an exchange rate conversion when Discover converts foreign currency to U.S. dollars, but this is not a separate fee. The rate Discover applies includes a small markup, but no additional percentage fee is charged on top of it the way other card networks allow their issuers to do.

Will my Discover card work everywhere I travel?

Discover is accepted in many countries, but not as widely as Visa or Mastercard. In some regions, particularly outside North America and Western Europe, Discover may not be accepted at all. Carry a Visa or Mastercard as a backup when traveling internationally.

What fees might I pay if I withdraw cash from an ATM abroad?

Discover charges a cash advance fee (usually a percentage with a minimum) when you withdraw money at an ATM outside the United States. The ATM operator may also charge a separate fee. Neither of these is a foreign transaction fee, but both will be added to your bill.

Is Discover's no-fee policy better than a premium card that waives foreign fees?

It depends on the card. Some premium cards waive foreign transaction fees but charge an annual fee. If you travel frequently, the annual fee might be worth it for the other benefits. If you travel rarely, Discover's free policy with no annual fee may save you money overall.