Last Updated on October, 2024
Are you planning to try a ‘Discover’ card and thinking about its foreign transaction fees?
I can understand your concern.
Even though there are so many popular cards, the best thing about the Discover card is that it doesn’t use any fee for foreign transactions.
This way, you can save a little money from your usual spending.
But, apart from that, you must know a lot about it!
So keep reading.
Quick Summary
One of the major benefits of using a Discover card while traveling abroad is that it does not charge any fees for foreign transactions. This eliminates the added expense of international transaction fees, helping you save money while spending in other countries.
Discover may not be widely accepted outside of the US, so it is important to check before traveling.
While Discover does not charge foreign transaction fees, there may be other associated fees such as ATM fees and cash advance fees. It is important to check the terms and conditions of your specific Discover card. Consider alternatives like Wise or Revolut for fee-free international spending.
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Discover Card Foreign Transaction Fees
Can I Use My Discover Card Internationally?
Yes. Discover cards can be used internationally in locations that display the Discover logo for making purchases with merchants and withdrawing cash from ATMs.
It’s essential to be aware that Discover may not be widely accepted OUTSIDE the U.S. Before traveling, check if Discover is a popular card network in your destination.
GUESS WHAT? The Discover website provides more details about network coverage, categorizing countries into high acceptance and those with growing acceptance.
Countries like Canada and Mexico, as well as major European economies like Germany, fall into the lower bracket of growing acceptance. To ensure smooth transactions, additional payment methods, such as Visa or Mastercard, should be carried out in case Discover faces difficulties.
Listen, even if your Discover card is accepted, it might not be the most budget-friendly method due to cash advance fees, interest, and late payment fees. These fees will be explained in detail shortly.
Keep reading.
Discover Card Abroad (Other Fees)
When using your Discover card abroad, be aware of additional costs beyond those imposed directly by Discover, including the following:
- ATM Fees:
Using Discover’s ATM finder, you can find ATMs that offer free withdrawals, but some machines may charge fees. Research the extended Discover network for potentially lower costs.
- Dynamic Currency Conversion (DCC):
When purchasing or withdrawing cash abroad, you will be asked whether to process the transaction in the local currency or USD. In that case, avoid using USD – for convenience! Because this is Dynamic Currency Conversion.
Plus, remember! Choosing your home currency may result in unfavorable exchange rates and additional fees. My advice is to choose local currency to avoid unnecessary charges.
What Are the Other Discover Fees?
Listen carefully. Discover cards generally don’t charge an annual fee, but like any credit card, they have other potential costs. It’s essential to be aware of these fees, although they may vary. So, check the details of your specific card.
The following tiered list shows monthly volume and fee discount:
Remember that these fees could change. So, ALWAYS check your Discover card’s specific terms and conditions.
Types of Discover Cards
Do you know? The no foreign transaction fees and absence of an annual fee APPLY to all Discover cards. Discover offers a variety of cards, each designed for specific purposes.
I’ve listed the cards below:
Comparing Discover Card’s International Fees
When comparing Discover card’s international fees to alternatives like Wise, Revolut, and Bank of America, it’s important to note that Discover has no foreign transaction fees. However, international fees can vary across different services.
Different OPTIONS serve various customers, each with its international features and fees. Pay attention to fees calculated as a percentage of your spending, as even a small percentage can add up quickly when applied to every dollar spent while traveling.
However, check out the following table:
| Service/Provider | Exchange Rate | Foreign Transaction Fee | International ATM Fee | Additional Expenses to Be Aware Of |
| Discover | Discover exchange rate | None | Usually $10 or 5% cash advance fee | Credit card interest, late payment fees, penalties if not repaid in full |
| Wise | Mid-market exchange rate | None – currency exchange from 0.41% Free to spend from any currency you have | 2 free withdrawals up to $100 per month After that, $1.5 + 2% | $9 card order fee |
| Revolut | Mid-market exchange rate | 1.5% per transaction | No fees up to plan limit After that, 2% | Monthly fees depending on account tier |
| Bank of America | Exchange rate provided by Bank of America or card network | Varied, typically 3% | Varies, some fee-free ATMs available for debit card withdrawals Credit card with no annual fee | Credit card cash advance (about 3%), possible annual fees, credit card interest, late payment fees, penalties if not repaid in full |
Discover Card Foreign Transaction Limits
Various eligibility criteria, including your credit card score, play an essential role in determining your credit card limit on a Discover card.
You can typically complete an outline credit check before applying, which won’t affect your credit score. The result of this check can indicate your likelihood of approval for a new card.
Does Discover Have Foreign Transaction Fees?
Discover cards don’t charge currency conversion or foreign transaction fees when used overseas. This sets them APART from cards that typically impose fees of up to 3% on international spending.
Discover credit cards, which come in different types such as cash back, travel, student, or secured, typically don’t charge an annual fee. This means that using a Discover card overseas can be cheaper than cards that add fees for foreign transactions.
While Discover doesn’t have foreign transaction fees, it’s important to be aware of other potential costs associated with their credit cards.
These may include cash advance fees when using an ATM and interest and penalties. However, it’s worth noting that Discover may not offer the most competitive interest rates depending on your credit score.
The following table will simplify my point.
| Credit Card | Foreign Transaction Fees & Exchange Rates | Maintenance Fees & Interest | Rewards |
| Discover it Cash Back | No foreign transaction fees Exchange rate set by Discover | There’s no annual fee, and the interest rate varies from 16.74% to 27.74% For cash advances, the interest rate is 29.74%. | Receive 5% cash back on select rotating merchants and 1% cash back on other eligible purchases |
| Discover it Chrome | No foreign transaction fees Exchange rate set by Discover | There’s no annual fee, and the interest rate varies from 16.74% to 27.74%. For cash advances, the interest rate is 29.74%. | Receive 2% cash back on purchases made at gas stations and restaurants, and earn 1% cash back on all other eligible spending |
| Discover it Miles | No foreign transaction fees Exchange rate set by Discover | There’s no annual fee, and the interest rate varies from 16.74% to 27.74% For cash advances, the interest rate is 29.74%. | 1.5× miles earned for every dollar spent |
However, if you want to avoid interest payments and penalties, an alternative option is a debit card from providers like Wise and Revolut.
As you know, these debit cards don’t have foreign transaction fees, and both Wise and Revolut offer the convenience of multi-currency holding options for seamless international spending and travel.
Discover International ATM Fees
Understand that Discover doesn’t impose a specific fee when you use an ATM; instead, you’ll face a cash advance fee when withdrawing cash.
This fee is high, though!
Also, the ATM operator may add their own fee, so check the screen for additional charges during your withdrawal. When using an ATM with your Discover card, reviewing your card’s terms and conditions is essential. Check if the interest rate for cash advances is higher than that for regular card purchases.
Typically, it is higher, and interest may increase immediately after the withdrawal without the grace period offered for card purchases.
Have you got it?
| Card Type | Cash Advance Fee at ATM | Foreign Transaction Fee | ATM Operator Fee |
| Discover it Chrome | $10 or 5% cash advance fee (whichever is higher) Plus, 29.74% APR for cash advances | No Fee | Varies based on country and operator |
| Discover it Cash Back | $10 or 5% cash advance fee (whichever is higher) Plus, 29.74% APR for cash advances | No Fee | Varies based on country and operator |
| Discover it Miles | $10 or 5% cash advance fee (whichever is higher) Plus, 29.74% APR for cash advances | No Fee | Varies based on country and operator |
Notes:
Discover Exchange Rates
I’ll tell you about Discover exchange rates. When you make purchases in a foreign currency using your Discover card, the amount you pay will be converted back to dollars.
It’s important to note that the exchange rate applied might be the live Discover rate on the day your purchase is processed, not the day you make the transaction.
Discover’s exchange rates may differ from those you find on Google for the same currency pair because they include a small markup on the mid-market exchange rate. While this is a common practice, estimating your total spending in USD at the end of the month can make it a bit challenging.
In contrast, some providers like Wise and Revolut separate the currency exchange costs and use the mid-market rate for conversion based on your account plan. This approach can be more transparent, making it easier to understand precisely what you spend each time.
Discover Cards Alternatives
Discover is a GOOD CHOICE when spending internationally due to its absence of foreign transaction fees. However, since the Discover network is less widely accepted globally than in the U.S, having a couple of cards on a different network is practical.
However, choosing the right card can help reduce foreign transaction fees and secure better currency exchange rates.
Here are some alternative card OPTIONS to Discover:
| Details | Wise | Revolut | AmEx | Bank of America |
| Card Types | Debit | Debit | Debit and Credit | Debit and Credit |
| Order Fee | $9 | No Fee | No Fee | No Fee |
| Fees | None | Monthly fee is applied depending on account tier | Varied by card type | Annual fees are subject to inclusion based on the card chosen |
| Currencies | 40+ for holding and exchange. And 160+ countries | 25+ for holding and exchange, spend in 150+ | Calculate bills in USD, spend anywhere accepted worldwide | Calculate bills in USD, spend anywhere accepted worldwide |
| Transaction | None | None | Certain cards waive foreign transaction fees based on the card type, while others impose fees typically ranging from 2.5% to 3% | Typically, debit cards and numerous credit cards incur a 3% fee. However, there are credit cards offered that waive foreign transaction fees |
| ATM Fee | 2 free withdrawals to $100 per month, then $1.5 + 2% | No-fee withdrawals to plan limit, 2% after that | Usually, a fee of $10 or 5% of the cash advance amount (whichever is greater) applies | Credit cards often come with a cash advance fee, typically around 3% |
| Exchange Rate | Currency exchange from 0.41% (Mid-market rate) | up to the plan cap, then a 0.5% reasonable use charge applies. | Network rate | Network rate |
Using your card for spending and cash withdrawals is often convenient and secure when traveling abroad. It beats carrying a stack of foreign bills. However, the choice of your card can significantly impact the overall cost.
So, I’ll help you with some alternatives to Discover:
Wise
Revolut
American Express (AmEx)
Bank of America
How Do You Avoid Foreign Transaction Fees When Traveling?
This is my favorite part. I mean, to be in the safe zone!
In that case, you should also know how to avoid foreign transaction fees when traveling.
Alright, listen. Using a Discover card without a foreign transaction fee will save you money when traveling abroad. However, be CAUTIOUS of additional fees, especially when withdrawing cash from an ATM.
However, to minimize costs and complications:
You can also consider alternatives like Wise or Revolut, which offer no foreign transaction fees for spending and cash withdrawals in supported currencies.
Useful guides:
Conclusions
So, as a RECAP, remember that Discover cards are comparatively cheap. But it doesn’t mean it’s FREE except for Discover Card Foreign Transaction Fees.
However, Discover isn’t globally accepted.
So, to be safe, it’s BEST to consider alternatives like Wise or Revolut.
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