Citi Travel Card Foreign Transaction Fees Guide | Travel Points HQ
If you're planning an international trip, the last thing you want is surprise fees eating into your budget. So, do Citi travel cards charge foreign transaction fees? The short answer: it depends on the card. Many Citi travel cards, like the Citi Premierā and Citi PrestigeĀ®, don't charge foreign transaction fees, but some entry-level Citi cards do. In this guide, we'll break down exactly which Citi cards charge these fees, how much they cost, and how to avoid them entirely. Whether you're booking flights, hotels, or just grabbing a coffee in Paris, understanding Citi travel card foreign transaction fees can save you money.
What Are Foreign Transaction Fees?
A foreign transaction fee is a surcharge added by your credit card issuer when you make a purchase in a foreign currency or process a transaction through a foreign bank. Typically, it's a percentage of the transaction amountāusually around 3%.
For example, if you spend $100 on a meal in Italy, a 3% foreign transaction fee would add $3 to your bill. These fees can add up quickly, especially if you're traveling for weeks or making large purchases.
It's important to note that foreign transaction fees are different from currency conversion fees. The former is charged by your card issuer, while the latter is often built into the exchange rate you receive.
When it comes to Citi travel card foreign transaction fees, the good news is that many Citi cards designed for travel don't charge them. But not all Citi cards are created equal, so let's look at the specifics.
Which Citi Cards Charge Foreign Transaction Fees?
Citi offers a range of credit cards, and their foreign transaction fee policies vary. Here's a breakdown of the most popular Citi cards:
Citi Premierā Card: No foreign transaction fees.
Citi PrestigeĀ® Card: No foreign transaction fees.
CitiĀ® / AAdvantageĀ® Platinum SelectĀ® World Elite MastercardĀ®: No foreign transaction fees.
Citi ThankYouĀ® Preferred Card: 3% foreign transaction fee.
CitiĀ® Double Cash Card: 3% foreign transaction fee.
CitiĀ® Diamond PreferredĀ® Card: 3% foreign transaction fee.
As you can see, the travel-focused cards like the Premier and Prestige don't charge these fees, while cash back and balance transfer cards often do. If you're planning to use your card abroad, it's crucial to check your card's terms.
If you have a Citi card that charges a foreign transaction fee, you might want to consider upgrading to a travel card or using a different card for international purchases. The Citi travel card foreign transaction fees policy is designed to encourage travelers to use their premium travel cards.
How Much Are Citi's Foreign Transaction Fees?
For Citi cards that do charge foreign transaction fees, the fee is typically 3% of the transaction amount. This applies to purchases made in a foreign currency or processed outside the United States.
Here's how it works: if you use a Citi Double Cash Card to pay for a $200 hotel room in Japan, you'll be charged an additional $6 (3% of $200). That might not seem like much, but over a two-week trip, it can easily add up to $50 or more.
It's also worth noting that the fee is calculated based on the amount after any currency conversion. So if the exchange rate is unfavorable, you're paying more in both conversion and fees.
To avoid these charges, you'll want a card that doesn't impose Citi travel card foreign transaction fees. The Citi Premierā and Citi PrestigeĀ® are both excellent options for international travel because they waive these fees entirely.
How to Avoid Foreign Transaction Fees with Citi
If you're stuck with a Citi card that charges foreign transaction fees, don't worryāthere are ways to avoid them.
1. Use a Citi travel card. The easiest solution is to apply for a Citi card that doesn't charge foreign transaction fees, such as the Citi Premierā or Citi PrestigeĀ®. These cards are designed for travelers and offer additional perks like travel insurance and airport lounge access.
2. Pay in local currency. When given the option to pay in USD or the local currency, always choose the local currency. This avoids dynamic currency conversion (DCC), which often comes with poor exchange rates and additional fees.
3. Carry a backup card. If you have a card with no foreign transaction fees from another issuer, use that for international purchases and save your Citi card for domestic spending.
4. Use cash or debit. While not always practical, using local cash or a debit card with no foreign transaction fees can help you avoid credit card fees altogether.
By being strategic, you can minimize or eliminate Citi travel card foreign transaction fees on your next trip.
Why Citi Travel Cards Are Worth It for International Travel
Citi travel cards like the Premierā and PrestigeĀ® offer more than just no foreign transaction fees. They come with a suite of benefits that make them ideal for frequent travelers:
- Travel insurance: Coverage for trip cancellation, delays, and lost luggage.
- Airport lounge access: Enjoy complimentary access to Priority Pass lounges.
- Rewards: Earn flexible points that can be transferred to airline and hotel partners.
- No foreign transaction fees: Save 3% on every international purchase.
These perks can easily outweigh the annual fees associated with these cards. For example, the Citi Premierā has a $95 annual fee, but if you spend $2,000 abroad, you'd save $60 in foreign transaction fees alone. Add in travel insurance and rewards, and the value adds up quickly.
If you travel internationally even once or twice a year, a Citi travel card with no foreign transaction fees is a smart addition to your wallet. It simplifies your spending and ensures you're not paying extra for the privilege of using your card abroad.
The Bottom Line on Citi Travel Card Foreign Transaction Fees
Not all Citi cards are created equal when it comes to foreign transaction fees. While many of Citi's travel-focused cards waive these fees, some of their cash back and balance transfer cards still charge 3%. If you're planning a trip abroad, check your card's terms and consider upgrading to a Citi travel card if you're currently paying foreign transaction fees.
The key takeaway: Citi travel card foreign transaction fees are avoidable if you choose the right card. With no foreign transaction fees and a host of travel benefits, cards like the Citi Premierā and Citi PrestigeĀ® are built for international explorers. So before you book that next flight, make sure your wallet is ready.
Frequently asked questions
Does the Citi Premier card charge foreign transaction fees?
No, the Citi Premierā Card does not charge foreign transaction fees. You can use it anywhere in the world without incurring extra charges.
What is the foreign transaction fee on the Citi Double Cash Card?
The CitiĀ® Double Cash Card charges a 3% foreign transaction fee on purchases made in foreign currencies or processed outside the U.S.
How can I avoid foreign transaction fees with my Citi card?
The best way is to use a Citi travel card that doesn't charge these fees, like the Citi Premierā or Citi PrestigeĀ®. Alternatively, always choose to pay in the local currency and consider using a backup card with no foreign transaction fees.
Are foreign transaction fees the same as currency conversion fees?
No, they are different. Foreign transaction fees are charged by your card issuer, while currency conversion fees are typically included in the exchange rate when you make a purchase in a foreign currency.
Do all Citi cards charge foreign transaction fees?
No, not all Citi cards charge foreign transaction fees. Many of Citi's travel cards, such as the Premierā and PrestigeĀ®, do not charge them, while some cash back and balance transfer cards do.