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

Panna Kemenes
07.30.21
3 minute read

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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📝 Table of contents
  • Capital One Savor foreign transaction fee, annual fee, and rewards
  • Can you use Capital One internationally?
  • How do I avoid foreign transaction fees?
  • Want to avoid costly fees when spending abroad? Try Wise
  • 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.

    💰You can read more about foreign transaction fees, and how they impact your purchases in this article.

    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

    Capital One Savor key features²
    Annual fee
      $95
    APR
      15.99% to 24.99%
    Sign-up reward
      $300 for a spend of $3000 in the first three months
    Cashback reward
      4% for dining and entertainment2% for grocery1% for everything elsePlus 8% initial offer for ticket purchases at Vivid Seats
    Foreign transaction fee
      0%

    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.

    💡 If you want to be sure you’re getting the real exchange rate (the one you see on Google), then try the Wise Account. The Wise card is perfect for use abroad, and there are no markup fees on the exchange 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 real exchange rate (the one that Google shows). You can use a provider like Wise to get the real 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 real 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 free 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.

    Get a Wise account in minutes 🚀

    💡 If you’re interested in applying for a credit card, then you can also read the guide on how to apply and get approved.

    Sources

    1. Capital One
    2. Capital One Savor card details
    3. Capital One SavorOne card details
    4. Going Abroad: Foreign Transaction Fees
    5. Credit cards abroad: charges and foreign currency fees
    6. Dynamic Currency Conversion
    7. What Is a Cash Advance on a Credit Card?

    All sources checked April 6, 2021


    This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended to amount to advice on which you should rely. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax or other professional advice from TransferWise Limited or its affiliates. Prior results do not guarantee a similar outcome. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date.

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