Basic architecture of cross-border charges
A typical cross-border transaction separates into two principal steps. First, the local-currency amount is converted into the billing currency. That conversion can be performed by the card network (Visa or Mastercard) or by the merchant’s provider when dynamic currency conversion (DCC) is offered. Second, one or more surcharges may be added: an issuer foreign-transaction fee, an ATM-owner surcharge, or a merchant markup embedded in DCC. Visa’s consumer guidance states plainly that “you may receive the option to pay in your home currency, which includes exchange rate and additional fees.” Visa — Dynamic Currency Conversion
How DCC changes the arithmetic
Dynamic currency conversion presents the cardholder with a single-dollar amount at checkout. The convenience masks a transfer of the conversion margin from the network or issuer to the merchant acquirer. Mastercard explains DCC as a merchant or acquirer product and warns that the merchant-offered conversion can “include exchange rate and additional fees.” When cardholders accept DCC they may avoid a later issuer percentage charge, yet the merchant’s rate often contains a significant markup that raises the base amount used by any subsequent fee calculations. Mastercard — DCC Performance Guide (PDF)
A numeric example clarifies the effect. Suppose a €100 bill. If the card network converts it at a rate producing $110 and an issuer charges 3%, the result is $113.30. If a merchant offers DCC that quotes $118 for the same item and the card posts in USD, the cardholder pays $118 immediately. The difference between $118 and $113.30 represents net excess cost induced by DCC. These arithmetic steps are simple to reproduce for any transaction size.
ATM charges and the deposit-account layer
Cash withdrawals introduce fixed fees on top of percentage adjustments. Chase’s deposit-account materials describe a Foreign Exchange Rate Adjustment for non-USD ATM activity and list a non-Chase ATM withdrawal fee. The instruction reads that a “Foreign Exchange Rate Adjustment: … 3% of withdrawal amount after conversion to U.S. dollars,” and shows a $5 per withdrawal non-Chase ATM fee in some account types. Those lines form the contractual basis for Chase ATM fees abroad and Chase currency conversion fee practice on debit transactions. Chase — Additional Banking Services and Fees (PDF)
Consumer-facing fintech guidance summarizes common ATM exposures: “As well as an upfront fee to get your money from an ATM, you may pay an ATM withdrawal foreign transaction fee — a percentage charge — and a cost added by the ATM operator.” Wise’s advisor note highlights the stack of potential charges and recommends tactical withdrawal behavior to reduce aggregate cost. Wise — guide
Chase-specific labels and marketed promises
Chase advertises travel-focused credit cards with a clear consumer promise. The Chase Sapphire Preferred page states that “You won’t pay foreign transaction fees when you use your card outside the United States. For example, if you spend $5,000 internationally, you’ll avoid $150 in foreign transaction fees.” That wording means a Chase no foreign transaction fee pledge for card purchases on eligible cards. Chase Sapphire Preferred
Searches for “Chase Sapphire international fees” or “Chase travel card foreign fees” return product pages that repeat the issuer pledge. The presence of that pledge removes the issuer-percentage layer for point-of-sale purchases on covered credit cards. The deposit-account language continues to govern ATM withdrawals and certain debit transactions, creating a two-track fee environment for the same account holder.
Practical tactics to avoid conversion and ATM fees
The most effective tactics involve product choice and checkout behavior. The following steps are evidence-based and measurable.
- Use a card that advertises zero issuer surcharges for purchases. Choosing a card that states Chase no foreign transaction fee avoids the standard 1–3% issuer surcharge on point-of-sale charges. Compare product pages before travel. Chase — No foreign transaction fee cards
- Decline merchant DCC. Select local currency when offered the choice. Visa warns that accepting the merchant’s home-currency option “includes exchange rate and additional fees.” Rejection moves conversion to the network level and removes the merchant markup. Visa — DCC guidance
- Consolidate ATM withdrawals. If a bank charges a fixed fee per foreign withdrawal, fewer larger withdrawals reduce the per-dollar cost. Wise’s travel guidance recommends “fewer, larger withdrawals” as a basic savings tactic. Wise — guide
- Prefer in-network ATMs or fee-reimbursing accounts. Some financial networks waive ATM-owner surcharges for partner banks. Using a partner ATM avoids the owner surcharge and limits the stack of fees. Wise and other travel guides catalog networks and premium products that reimburse or waive ATM fees. Wise — guide
- Monitor exchange-rate spreads when making large purchases. For sizeable transactions the mid-market spread can exceed typical issuer percentages. Use a market-rate check before accepting a DCC amount. Tools from Visa and Mastercard, together with third-party mid-market feeds, allow quick verification. Visa — DCC, Mastercard — DCC guide
Numeric planning method for travelers
Travelers can forecast their incremental costs with a short calculation:
- Estimate local-currency spend.
- Convert to billing currency using a conservative market rate.
- Add issuer-percentage fees where applicable (1%–3% typical).
- Add fixed ATM fees per expected withdrawal.
- Include a buffer for ATM-owner surcharges and merchant DCC markups.
An example for planning: $2,000 of foreign purchases on a card with a 3% issuer fee produces an expected surcharge of $60 (2000 × 0.03 = 60). If a traveler plans three ATM withdrawals each costing $5 in fixed fees and carrying a 3% conversion adjustment on $300 total withdrawn ($9), the incremental ATM cost equals $15 + $9 = $24. Adding the $60 issuer surcharge results in $84 of projected cross-border fees. If the card has Chase no foreign transaction fee, omit the $60 line and the projected cost drops to $24.
Common misconceptions and risk signals
A frequent misconception is that paying in the cardholder currency at checkout avoids all fees. That choice often triggers DCC and shifts the markup into the quoted USD amount. The Points Guy has repeatedly warned that merchants’ DCC offers frequently “produce a worse out-of-pocket result” than network conversion. Accepting DCC on a card that charges foreign transaction fees can magnify total cost: the consumer pays the merchant markup and then an issuer percentage on the larger amount. The Points Guy — Avoid dynamic currency conversion
Another misread involves debit versus credit protections. Chase card overseas charges differ by product. A Chase travel card foreign fees line for credit purchases can be zero while the linked checking product applies Chase ATM fees abroad and a 3% Foreign Exchange Rate Adjustment on ATM or debit activity. Read the deposit-account PDFs and cardmember agreement text before travel. Chase — Additional Banking Services and Fees (PDF)
Execution checklist for a trip
- Verify that the primary travel card displays Chase no foreign transaction fee. Chase product list
- Download and search the deposit-account fee PDF for “Foreign Exchange Rate Adjustment.” Chase fee PDF
- Set daily ATM limits and group withdrawals.
- Enable transaction alerts to spot unexpected DCC or markup amounts.
- Keep a backup card that uses a different network in case of merchant-level refusals.
Final Considerations
The cost mechanics are transparent once they are separated into conversion and surcharge layers. Card networks perform conversion; merchants can offer DCC and embed a markup; issuers and ATM owners add percentage or fixed fees on top. Chase’s marketing of Chase Sapphire international fees and a Chase no foreign transaction fee pledge for specific cards removes the issuer-percentage for purchases. Chase deposit-account materials document a 3% Foreign Exchange Rate Adjustment and fixed ATM fees that produce Chase ATM fees abroad for certain accounts. Travelers who select the right credit products for point-of-sale charges, decline merchant DCC, consolidate withdrawals, and prefer in-network or fee-reimbursing ATMs will materially reduce Chase card overseas charges and other international purchase fees. Sources used in this article include Chase product pages and fee PDFs, Visa DCC guidance, Mastercard DCC materials, Bankrate, Wise and The Points Guy. Chase Sapphire Preferred, Chase Additional Banking Services and Fees (PDF), Visa — DCC