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 swipe a Discover card outside the United States, you pay the same price as you would at home — no extra percentage added to your bill by Discover itself.
This sets Discover apart from most other major card networks. Visa and Mastercard typically charge 1% to 3% on top of every foreign purchase. American Express charges between 2.7% and 3.7% depending on the card. Discover's zero foreign transaction fee applies to all purchases made outside the US, whether you're buying a meal in London, paying for a hotel in Tokyo, or withdrawing cash from an ATM in Mexico City.
Key Takeaways
- Discover charges no foreign transaction fee on purchases made anywhere outside the United States.
- Your bank or the ATM operator may still charge a fee for cash withdrawals abroad, even though Discover itself does not.
- The exchange rate Discover uses is set by Mastercard's network, not by Discover, so you cannot negotiate a better rate.
- Other card networks like Visa, Mastercard, and American Express all charge foreign transaction fees that Discover does not.
How the exchange rate works when you use Discover abroad
Discover does not set the exchange rate you receive on foreign purchases. Instead, Discover uses the rate set by Mastercard's network on the day your transaction processes. This rate is typically within 1% to 2% of the mid-market rate — the rate you would see on a currency exchange website — but it is not the absolute best rate available.
The exchange rate is applied automatically and you cannot request a different one. Discover will show you the rate and the converted amount on your statement after the transaction posts, usually within one to three business days. Because the rate can shift between the day you make the purchase and the day it processes, the final amount you owe may differ slightly from what the merchant's terminal displayed.
ATM fees and other charges that still apply abroad
Although Discover itself charges no foreign transaction fee, other parties may charge you. If you withdraw cash from an ATM outside the United States, the ATM operator or the bank that owns the ATM can charge you a fee — typically $2 to $5 per withdrawal. Discover does not control this fee and does not refund it.
Some Discover cardholders have access to a network of ATMs abroad that do not charge a fee, but this varies by card and by location. Check your card's terms or call Discover before you travel to learn whether your specific card qualifies for fee-free ATM access in the countries you plan to visit.
Merchants can also charge you differently for using a credit card instead of cash, though this is less common in developed countries. Some merchants abroad may add a surcharge for card payments or offer a discount for cash — these decisions are made by the merchant, not by Discover.
Comparing Discover to other card networks on foreign fees
| Card Network | Foreign Transaction Fee | Notes |
|---|---|---|
| Discover | 0% | No fee on any purchase or cash withdrawal |
| Visa | 1% to 3% | Varies by card issuer; most cards charge 1% to 2% |
| Mastercard | 1% to 3% | Varies by card issuer; most cards charge 1% to 2% |
| American Express | 2.7% to 3.7% | Varies by card; some premium cards charge 0% |
If you travel frequently or make regular purchases from foreign merchants online, Discover's zero foreign transaction fee can save you hundreds of dollars per year compared to a Visa or Mastercard that charges 2% on every transaction. However, Discover is not accepted everywhere outside the United States — many smaller merchants, especially in developing countries, do not take Discover cards at all.
Where Discover is accepted outside the United States
Discover's acceptance abroad is narrower than Visa or Mastercard. In Europe, Canada, Australia, and Japan, you will find Discover accepted at most major retailers, hotels, and restaurants. In parts of Asia, Africa, and Latin America, acceptance drops significantly — many merchants simply do not have the infrastructure to process Discover cards.
Before traveling, contact Discover to ask about acceptance in your specific destination. You can also check Discover's website for a list of countries and regions where the card is widely accepted. Even in countries where Discover is accepted, it is wise to carry a Visa or Mastercard as a backup, because you may encounter merchants or ATMs that do not take Discover.
What to do if a merchant charges you a foreign transaction fee anyway
If a merchant or ATM operator charges you a fee and tells you it is from Discover, contact Discover to report it. Discover does not authorize merchants to charge foreign transaction fees on behalf of the card network. The fee came from the merchant or ATM operator, not from Discover.
If the fee was charged by an ATM, you can dispute it with the ATM operator's bank or with Discover, though Discover may not be able to refund it since Discover did not impose it. If a merchant charged you a separate foreign transaction fee at checkout, ask for an itemized receipt showing the fee separately — this helps you dispute it later if needed.
Frequently Asked Questions
Do I pay a foreign transaction fee if I buy something online from a foreign website?
No. Discover charges no foreign transaction fee on online purchases from foreign merchants, just as it does not charge a fee for in-person purchases abroad. The only fee that might apply is the exchange rate markup built into Mastercard's network rate, which is typically 1% to 2% above the mid-market rate.
Will Discover refund an ATM fee charged by a foreign bank?
Discover does not refund ATM fees charged by foreign banks or ATM operators, because Discover did not charge the fee. However, some Discover cards include ATM fee reimbursement as a cardholder benefit — check your card's terms to see if yours does. If your card offers this benefit, you may be able to request a refund from Discover after you pay the fee.
Is Discover accepted everywhere I travel?
No. Discover is widely accepted in North America, Western Europe, Australia, and Japan, but acceptance is much lower in parts of Asia, Africa, and Latin America. Always carry a Visa or Mastercard as a backup when traveling outside major developed countries.
Can I get a better exchange rate if I convert currency before I travel?
You may be able to get a slightly better rate by exchanging currency at your bank before you leave, but the difference is usually small — often less than 1%. Using your Discover card abroad typically gives you a rate within 1% to 2% of the mid-market rate, which is competitive with most currency exchange services.