Citibank Foreign Transaction Fee
Citibank is considered one of the best banks in the US for international shoppers. The most crucial question is: does a Citi card have foreign transaction fees? There is no simple answer here—it all depends on your account type. While many types of Citibank cards do have fees for making payments while traveling abroad or in foreign stores online, a Citi international transaction fee is far easier to avoid than charges from other banks.
By the end of this article, you’ll learn everything you need to know before opening an account with Citibank—keep reading to discover how to make your banking experience as rewarding as possible.
Citibank Card Foreign Transaction Fees
The simplest way to avoid paying a Citibank debit card foreign transaction fee is to be a Citigold or Citi Priority member. The same is true for credit cards—AAdvantage or Costco cardholders don’t have to pay the Citibank credit card foreign transaction fee. However, holders of other card types are still charged for international transactions.
So, let’s review Citibank international fees in more detail.
Debit Card
Citibank offers potential customers with a wide variety of accounts. While they differ in cost and in purpose, most of these have a standard fee structure, including international transactions and foreign currency operations. But, as we’ve mentioned, exceptions do exist.
The good news is that some premium packages offered by Citibank come with no foreign transaction fees. If you are a Citi Priority or Citigold member, you can save quite a lot on international payments. However, be aware that these packages are not available to every Citibank customer—your accounts with the bank must first accrue a minimum of $200,000.
Package type | Foreign transaction charges | Additional fees and charges |
|---|---|---|
Basic Banking Package | 3% | $12 monthly fee—customers may be exempt from paying fees if they meet certain criteria |
Access Account Package | 3% | $10 monthly fee—customers may be exempt from paying fees if they meet certain criteria |
Citibank Account Package | 3% | $25 monthly fee—customers may be exempt from paying fees if they meet certain criteria |
Citi Priority Package | 0% | $30 monthly fee—customers may be exempt from paying fees if they meet certain criteria |
CitiGold Package | 0% | An additional requirement: your account balance must exceed $200,000 |
Credit Card
In addition to its wide range of debit cards, Citibank also offers customers a great variety of credit options, including cards for frequent travelers and regular shoppers of overseas websites.
Some of the cards may come with no charges for international transactions but charge a fixed annual fee instead. Others may have no annual fees but will charge you for transactions made abroad or purchases made from foreign websites. There’s sadly no perfect card out there.
When it comes to the international transaction fees that Citibank credit card holders should be prepared for, they include 3% of the transaction amount, as well as an annual percentage rate, which is set on a case-by-case basis.
No Foreign Transaction Fee Cards
Card type | Foreign transaction charges | Additional charges |
|---|---|---|
Citi/AAdvantage Credit Cards | 0% | Annual fees range from $99 to several hundred US dollars—the card type determines the payment amount |
Citi Premier Card | 0% | Annual charge of $95 |
Costco Credit Cards | 0% | You can avoid annual fees if you meet certain criteria |
Citibank International ATM Fees
If you plan to use your Citibank card at ATMs while abroad, you can expect some additional fees.
Charge for Using an ATM
Citibank ATMs are available in a couple dozen countries around the world—you can use their services wherever you are abroad. The important point is that customers can withdraw money from these ATMs for free. By the way, the same applies to more than 80,000 Citibank ATMs in the United States—they also do not charge any fees if you’re the bank’s customer.
However, if you want to withdraw money from your Citibank card at an ATM that is not part of the Citibank network, you will be charged a fee. Typically, it can reach up to $2.50, but the exact amount varies depending on your account and card.
ATM Services for Credit Cards Abroad
It goes without saying that withdrawing money from a credit card comes with higher interest rates and charges compared to a debit card. Using an ATM abroad can be very disadvantageous indeed for Citibank credit card holders—you may have to pay a $10 fee or 5% of the transaction amount to withdraw cash outside the US. Plus, you’ll still have to pay other applicable charges, including Citibank international transaction fee.
Dynamic Currency Conversion
To make a transaction at the best exchange rate, you should consider several important factors, like dynamic currency conversion (DCC).
So, the ATM or the seller offers you to choose USD instead of the local currency. While, in theory, this may sound attractive and convenient, in practice, DCC comes with higher costs compared to a transaction in a native currency. If you make a transaction using dynamic currency conversion, the ATM will charge you an additional transaction fee in addition to the already not-so-favorable exchange rate. To make your purchase as profitable as possible and to make your withdrawal as cheap as possible, you should avoid double charges by paying in the native currency.
Charges In Addition to Citibank Fees
ATMs from other US-based providers may charge their own additional fees to non-clients. So, if you use a third-party ATM to withdraw money from your Citibank card while abroad, you should be prepared to pay both the Citi foreign transaction fee and all other applicable charges. However, if you are a Citigold package member, you may be eligible for a refund on the ATM fees you pay.
So, in conclusion, if you frequently travel abroad or like to shop on foreign websites, you should be prepared for the various fees your bank may charge you for international transactions. Whether you’re traveling abroad or shopping on foreign websites, in most cases, you’ll have to pay a Citibank foreign transaction fee. However, there are several types of Citibank accounts that can help you save money on your next trip or online purchase.
