It's common practice for major banks and corporate card providers to charge international transaction fees of around 3% for every transaction. The best way to avoid these fees is to work with a card provider who consumes the foreign currency fee within their costs, such as Cape, and doesn’t charge it back to the cardholder.
An international transaction or FX fee is a surcharge on your credit card bill that occurs when you make a purchase in a foreign currency. Most banks and business credit card issuers charge between 1 to 3% on foreign currency transactions.
The international transaction fee consists of a currency conversion fee, charged by the network such as Visa or Mastercard, and an issuer fee, charged by your card provider.
Cape is one example of a card provider that does not charge an international transaction fee to its customers. If you make regular payments in a foreign currency, such as USD, getting a Cape card could save you up to 3% of each transaction on foreign currency conversions alone.