Is there a Capital One Savor foreign transaction fee? Costs and tips

The Capital One Savor card has some attractive rewards, such as cash back for dining and entertainment. But there are also some fees that are worth knowing about.

This article will show you the Capital One Savor foreign transaction fees, annual fees, and rewards.

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Capital One Savor foreign transaction fee, annual fee, and rewards

There is no Capital One Savor foreign transaction fee. This is great news for those wanting to use their account for overseas purchases, as foreign transaction fees can be costly.

There is an annual fee, however, of $95. This can be offset in the first year, with a one-off bonus of $300 for $3000 spent in the first three months.

The Capital One Savor card offers unlimited cash back of 4% for all dining and entertainment spend, making it rewarding for high spenders in these areas. There is also 2% cash back for grocery spend, and 1% for everything else.

The card offers an APR of 15.99% to 24.99%, and there is no introductory 0% APR offer.¹

Do all Capital One cards have no foreign transaction fee?

Both the Capital One Savor and the SavorOne cards have no fees for transactions in a foreign currency.³ In fact, none of Capital One’s US-issued credit cards have foreign transaction fees.⁴

Can you use Capital One internationally?

The Capital One Savor card is only available for US residents, but can be used internationally. It has no foreign transaction fees.

Cashback applies to all spend overseas – including the higher rates for specific categories.

It’s worth noting, though, that the exchange rate will be the Mastercard or Visa rate, not the mid-market rate.

To find out more about credit card use abroad, you can read the guide to using credit cards in Europe. It’s worth knowing the fees and hidden costs before you travel abroad.

How do I avoid fees when spending abroad?

There are four main ways that you can incur charges when paying in a foreign currency. You can avoid these fees, but you must take care and plan your spending well to eliminate them all!

Direct transaction fees

Some cards add a foreign transaction fee of up to 3% for all transactions not processed in US Dollars. Not all cards have foreign transaction fees – avoid the ones that do when traveling overseas.

The Capital One Savor card, for example, has no foreign transaction fees.

Costs due to the exchange rate

Transaction fees are not the only way you can lose money on a purchase – the exchange rate used matters too. The exchange rate used for transactions is set by the card issuer.

The rate for Capital One is set by the Mastercard or Visa payment scheme exchange rates.⁵

This can differ slightly from the mid-market exchange rate (the one that Google shows). You can use a provider like Wise to get the mid-market exchange rate.

Dynamic Currency Conversion (DCC) fees

These are additional charges added by a foreign payment merchant, rather than the bank. DCC converts the rate into US dollars at the point of sale, but at an additional cost that can be as high as 7%.

The best advice is to stay vigilant whenever making a payment - and check the currency quoted. If your bill is converted to USD without your permission, you can ask the merchant to void the transaction.⁶

ATM fees

While Capital One does not charge foreign transaction fees, you may be charged a fee of around $2 by the ATM owner when withdrawing cash. Capital One, MoneyPass® and Allpoint® ATMs are free to use for Capital one customers, however, MoneyPass® ATMs are only available in the United States.

It’s important to note that if you use your Capital One Savor card, this will be withdrawn as a cash advance. A cash advance is added to your credit card balance, so it can incur a higher cost and APR than buying something using your credit card.⁷

It’s recommended to only use a cash advance if you need to access cash urgently, such as in an emergency. Using an alternative card to withdraw cash is a much cheaper option, and ensures that your credit utilization ratio and credit score are not effected.

Want to avoid costly fees when spending abroad? Try Wise

With the Wise multi-currency account, you can make payments and transfers overseas using the mid-market exchange rate. You can also hold funds in up to 50 different currencies.

A Wise Account is simple to set up and use. You won’t receive rewards or cashback as you will with some credit cards, but you also won’t pay any annual fees. There are also never any minimum balances to worry about.

Alongside the account, you can also obtain a Wise debit card for a small fee. This allows you to make direct payments and cash withdrawals from your account anywhere that VISA or Mastercard is accepted.

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Please see Terms of Use for your region or visit Wise Fees & Pricing for the most up to date pricing and fee information.

Sources

All sources checked April 6, 2021