Finance glossary
Foreign Transaction Fee
Also known as: Non-sterling transaction fee, FX fee
In simple terms
A foreign transaction fee is a charge some cards add when you spend in a foreign currency — abroad or on overseas websites — on top of the exchange rate.
On this page
What does foreign transaction fee mean?
A foreign (or non-sterling) transaction fee is an extra percentage many debit and credit cards charge when you pay in a currency other than pounds, whether abroad or online with an overseas retailer.
It is separate from, and added on top of, the exchange rate applied.
How the fee works
When you spend in a foreign currency, the card network converts it to pounds at its rate, and your card provider may add a fee — often around 2.75–3%. Cash withdrawals abroad can attract further charges.
Some “travel” cards and accounts charge no foreign transaction fee, which can save frequent travellers a lot.
How could this affect me?
These fees quietly add up on holidays and overseas shopping. Choosing a fee-free card for travel, and always paying in the local currency rather than pounds at the till, usually gets you a better deal.
If a machine or website offers to charge you in pounds (“dynamic currency conversion”), declining is normally cheaper.
Things to watch out for
- Always choose to pay in the local currency, not pounds, abroad.
- Cash withdrawals overseas can add further fees and interest.
- A fee-free travel card can save frequent travellers a lot.
General information, not personal advice
Consumer Credit is an independent information service. We do not provide regulated financial advice or sell financial products. For advice on your own situation, speak to an appropriately authorised firm or a free service such as MoneyHelper. About Consumer Credit.
Sources
We checked this page against these official and authoritative sources.
- MoneyHelper, Using your card abroad (opens in a new tab). Accessed 22 Aug 2026.