[Francisco]

If the business deals with transactions outside the US, it will probably use that country’s currency.

Sometimes they may prefer payment in dollars, but in that case, they’ll need a bank account based in the US.

[Taryn]

Keep in mind, it’s called a foreign transaction fee, not a currency conversion fee (though some banks might include that too).

Even if the charge is in USD, if the company processing the payment isn’t based in the US, you’ll probably get hit with the fee.

That’s why when overseas point-of-sale systems give you the option to pay in USD, it’s a bad idea.

Not only is the exchange rate likely to be bad, but you might also end up with foreign transaction fees despite trying to dodge them.

[Clay]

You can tell if there’s an foreign transaction fee if the charge shows up in a currency other than USD.

It depends on the currency used for the charge.

[Nannie]

It all depends on the currency they use for charging.

If it’s in USD, you’re good to go.

Otherwise, be prepared to cough up some extra cash.

(And just a heads up, don’t opt for dynamic currency conversion if they offer it.)