Discover does not charge a foreign transaction fee on any of its credit cards
Discover cards carry no foreign transaction fee, meaning you will not pay an extra percentage on top of your purchase when you use the card outside the United States. This applies to all Discover credit cards, including the Discover it card, Discover it Miles, Discover it Business, and every other Discover product. The card networks that do charge this fee — Visa, Mastercard, and American Express — typically add 1% to 3% to each foreign purchase, so this is a real difference in what you pay.
The absence of a foreign transaction fee does not mean your purchase costs nothing to convert. Your bank or card issuer still converts the foreign currency to US dollars, and they use their own exchange rate to do so. That exchange rate may be slightly higher or lower than the mid-market rate you see online, but there is no separate fee tacked on top of it.
Key Takeaways
- Discover charges no foreign transaction fee on purchases made outside the United States, unlike Visa, Mastercard, and American Express cards that typically charge 1% to 3%.
- Currency conversion still happens at Discover's exchange rate, which may differ slightly from the mid-market rate, but no additional percentage fee is added.
- The no-fee policy applies to all Discover credit cards, both personal and business versions.
- You will still see a charge in US dollars on your statement, converted from the foreign currency at the time of the transaction.
How the exchange rate works when you use Discover abroad
When you make a purchase in a foreign currency, Discover converts it to US dollars using the exchange rate in effect on the day the transaction is processed — not the day you swipe the card. This processing date is usually one to three business days after you make the purchase, so the rate may have moved slightly by then.
Discover publishes its exchange rates on its website, and you can look up the rate that was used for any transaction. The rate Discover uses is typically very close to the mid-market rate (the rate banks use with each other), but it is not identical. The difference is how Discover makes money on currency conversion without charging you a separate fee. This margin is usually smaller than the combined effect of a foreign transaction fee plus a less favorable exchange rate on other cards.
Where Discover cards work outside the United States
Discover's acceptance outside the US is narrower than Visa or Mastercard. Discover is accepted in most developed countries and major tourist destinations, but you will find fewer merchants who take it in smaller cities, rural areas, and developing countries. Europe, Canada, Japan, Australia, and Mexico generally have good Discover acceptance, but coverage drops significantly in parts of Asia, Africa, and Central America.
Before you travel, contact Discover to let them know your destination and dates. This does not prevent fraud, but it prevents Discover from blocking your card as suspicious when it sees charges from abroad. You can also check Discover's merchant locator on their website to see which businesses in your destination accept the card. Having a backup card from Visa or Mastercard is wise for any trip outside North America or Western Europe.
Comparing Discover's foreign transaction fee to other card networks
| Card Network | Foreign Transaction Fee | Notes |
|---|---|---|
| Discover | None | No fee on any Discover card; currency conversion only |
| Visa | 1% to 3% (varies by issuer) | Most Visa cards charge 2% to 3%; some premium cards charge 0% |
| Mastercard | 1% to 3% (varies by issuer) | Most Mastercard cards charge 2% to 3%; some premium cards charge 0% |
| American Express | 2% to 3% (varies by issuer) | Most Amex cards charge 2.7%; some premium cards charge 0% |
The foreign transaction fee is set by your card issuer (the bank that issued your card), not by the card network itself. So a Visa card from one bank might charge 2% while a Visa card from another bank charges 3%. Some premium credit cards from all networks waive the foreign transaction fee entirely, but they usually charge an annual fee to offset that benefit.
Discover's advantage is that it waives the fee across its entire product line without requiring you to pay an annual fee. If you travel frequently and want to avoid foreign transaction fees, a no-annual-fee Discover card costs you nothing, whereas a no-foreign-fee Visa or Mastercard often requires you to pay $95 to $550 per year.
ATM withdrawals and cash advances abroad
Discover does not charge a foreign transaction fee on ATM withdrawals either, but you may still pay fees from the ATM operator or from Discover itself. Many ATMs outside the US charge a usage fee of $2 to $5 per withdrawal, and Discover may charge an additional fee for using an out-of-network ATM. Check your card's terms to see what Discover charges for ATM withdrawals outside the US.
Cash advances (borrowing money against your credit limit) are different from ATM withdrawals. Discover typically charges a cash advance fee of 3% to 5% of the amount withdrawn, plus interest that starts accruing when ready. This fee is separate from any foreign transaction fee and applies whether you withdraw cash at home or abroad. For this reason, using your debit card or a travel-specific card for cash is usually cheaper than a cash advance on your credit card.
What happens if you use Discover at a currency exchange booth
Currency exchange booths (the kiosks in airports and tourist areas that convert cash) do not accept credit cards for the exchange itself — they only take cash. If you use your Discover card to withdraw cash from an ATM and then exchange that cash, you pay the ATM fee plus the exchange booth's markup, which is usually 5% to 15% higher than the mid-market rate. This is almost always more expensive than using your Discover card directly at a merchant.
The best practice is to use your Discover card to pay merchants directly whenever possible, use ATMs only when you need small amounts of local cash, and avoid currency exchange booths entirely.
Frequently Asked Questions
Will Discover decline my card if I use it in another country?
Discover will not decline your card straightforward because you are in another country, but it may block the transaction if it looks suspicious. Call Discover before you travel and tell them your destination and dates. This reduces the chance of a block. If your card is declined, call Discover's customer service number on the back of your card to unblock it.
Do I pay the foreign transaction fee if I buy something online from a foreign website?
No. Discover charges no foreign transaction fee regardless of whether the merchant is physically located abroad or you are physically located abroad. The fee does not explore to online purchases from foreign retailers either. You will still see a currency conversion if the retailer charges in a foreign currency, but no additional percentage fee is added.
Is Discover accepted in Europe?
Discover is accepted in most of Western Europe, including the UK, France, Germany, Spain, and Italy, though acceptance is less common than Visa or Mastercard. In Eastern Europe and smaller cities, Discover acceptance drops significantly. Bring a Visa or Mastercard as a backup for any trip to Europe outside major tourist areas.
What if the exchange rate changes between when I swipe my card and when the charge posts?
The exchange rate that matters is the one in effect when Discover processes the transaction, which is usually one to three business days after you swipe. You cannot control this timing, and Discover does not let you lock in a rate in advance. This is why the timing of your transaction can affect the final amount you pay, though the difference is usually small.
Can I dispute a foreign transaction if I think the exchange rate was unfair?
You can dispute any transaction you believe is incorrect, but Discover will compare the rate used to the rate published on its website for that date. If the rate matches, Discover will not reverse the charge. If you believe the rate was genuinely wrong (not just unfavorable), contact Discover with documentation of what the actual mid-market rate was on that date.