Planning to travel or shop abroad with your Citi Custom Cash Visa? Curious about what international fees you might face? You’re not alone—unexpected charges can turn a good deal into an expensive surprise.
Understanding these fees is crucial for anyone aiming to maximize rewards while minimizing costs. In this article, you’ll find a clear breakdown of Citibank’s foreign transaction fees, how they work, and practical tips to help you avoid unnecessary charges—so you can spend confidently wherever you go.
Related Video
Understanding Citibank Custom Cash Visa International Fees
When planning a trip overseas or thinking about making purchases from international merchants online, it’s important to know how your credit card handles international transactions. If you have – or are considering – the Citi Custom Cash Visa card, you’re probably wondering about its international fees and how they might impact your wallet. Let’s break down what you need to know in simple, practical terms.
What Are Citi Custom Cash Visa International Fees?
The Citi Custom Cash Visa Card charges a foreign transaction fee when you use your card outside the United States or make purchases from foreign merchants (even online). Here’s how it works:
- Foreign Transaction Fee Rate: 3% of each purchase made in a foreign currency or processed outside the U.S.
- How the Fee Is Charged: The fee is automatically added to your transaction amount, so you’ll see it as part of your purchase on your statement.
- When It Applies: The fee applies if you:
- Shop in a foreign currency (online or in person)
- Withdraw cash at an overseas ATM
- Pay for hotel rooms, tours, or tickets with foreign-based companies
Example:
If you spend $100 while traveling in Europe using your Citi Custom Cash Visa, you’ll be charged an extra $3 as the international fee, making the total $103.
Breaking Down the International Fees
To help you better understand, let’s look into the key aspects of the Citibank Custom Cash Visa’s international transaction fees:
1. When Do You Incur the Fee?
You incur the 3% international fee in the following scenarios:
- Shopping in Foreign Countries: Any purchase made abroad using your card.
- Online Purchases from Foreign Retailers: Even if you’re at home, buying from a non-U.S. website often counts.
- Using Your Card at Foreign ATMs: Both cash advances and purchases at foreign points-of-sale apply.
2. What Does “Processed Abroad” Mean?
- If the transaction—no matter the currency—is processed outside the U.S., the 3% fee can apply, even if you’re charged in U.S. dollars.
3. How Are Exchange Rates Handled?
- Credit card networks like Visa use their own prevailing exchange rates on the day your transaction is processed.
- The final amount in U.S. dollars might be slightly higher or lower based on daily currency fluctuations.
- The 3% fee is added after the currency conversion.
Benefits of the Citi Custom Cash Visa Card (and Its International Drawbacks)
Before focusing solely on the foreign transaction fee, it’s good to weigh the card’s overall pros and cons, especially as they relate to international use.
Benefits:
- 5% Cash Back: On your highest eligible spend category each month, up to a fixed limit.
- No Annual Fee: You don’t pay to keep your account open.
- Flexible Rewards: The cash back can be redeemed for various rewards.
International Drawbacks:
- 3% Foreign Transaction Fee: Each international purchase costs extra.
- No Specialized Travel Perks: Unlike many travel-focused cards, this card does not offer airport lounge access, travel insurance, or no-foreign-fee perks.
Key Considerations Before Using the Citi Custom Cash Visa Abroad
If you’re gearing up for international travel or plan to shop with overseas merchants, here are some points to keep in mind:
-
Fees Add Up Quickly:
Small purchases can become costly, especially over an extended trip or with frequent online shopping from international retailers. -
Exchange Rates Can Fluctuate:
The actual USD amount you pay might not match what you calculate using general exchange rates. Visa’s rates and the time lag between purchase and posting can affect your bill. -
Alternative Card Options:
Some cards offer no foreign transaction fees. If you travel often or make frequent global online purchases, you might want to consider getting a travel card in addition to your Citi Custom Cash Visa.
Steps to Manage or Avoid Citi Custom Cash Visa International Fees
It’s not always easy to avoid foreign transaction fees if you’re traveling or shopping online. However, you can take the following steps to minimize their impact:
1. Know When You’re Charged
Always check if the merchant is based outside the U.S. or if the transaction will be processed overseas—even U.S. dollar charges can sometimes trigger the fee.
2. Use Alternative Payment Methods
- Credit Cards without Foreign Fees: Many banks offer credit cards with no foreign transaction fees. Having one as your “travel card” can save you money.
- Digital Wallets: Some digital wallet services (like PayPal) offer more transparency with currency conversion and fees, though their fees can vary.
- Cash Exchange: You might get better rates by exchanging cash in advance or using a debit card with low international fees for ATM withdrawals.
3. Be Strategic with Purchases
- Limit Overseas Purchases on Your Custom Cash Card: Use your Citi Custom Cash Visa for purchases in the U.S. or for U.S.-based retailers to reap the cash back rewards without fees.
- Assign a Dedicated Travel Card: If you have multiple cards, use one with no foreign transaction fees strictly for international spending.
Tips for Reducing International Transaction Costs
While the Citi Custom Cash Visa card isn’t the best choice for international purchases due to its 3% fee, there are several best practices that can help you spend smarter abroad:
-
Apply for a No-Foreign-Fee Credit Card: If you plan to travel or shop internationally even semi-regularly, there are several cards out there designed specifically for travelers and international spenders. These cards often come with added perks.
-
Understand ATM Fees: If withdrawing cash abroad, you may pay an additional fee both from Citibank and the local ATM operator. Check your card’s terms before using international ATMs.
-
Use Local Currency: Always choose to pay in the local currency (not U.S. dollars) when given the option abroad. Dynamic currency conversion can lead to higher exchange rates and more fees.
-
Monitor Your Statements: Review your monthly statements for unexpected fees or conversion errors. Sometimes merchants can mistakenly charge your transaction as international even if they have a U.S. location.
-
Notify Your Bank About Travel: Always let Citibank know about your travel plans to avoid security holds or declines on international transactions.
Practical Advice for International Credit Card Use
To make the most of your Citi Custom Cash Visa – and avoid paying more than necessary – here’s some simple, actionable advice:
Do This Before You Travel or Shop Internationally:
- Check Your Card’s “No Foreign Fee” Policy: Review your current card agreements or call Citibank to confirm.
- Carry Multiple Payment Options: Have at least one other credit card or debit card with you as a backup.
- Turn on Travel Notifications: Use the Citi app or website to note your travel dates and destination.
While Abroad:
- Pay in Local Currency: Avoid “conversion offers” that let you pay in U.S. dollars; the merchant sets the exchange rate, which is often worse.
- Keep an Emergency Fund: Save some local currency in case your card is lost, blocked, or fails to work.
- Keep Receipts: In the event you spot incorrect or unexpected fees, receipts help substantiate your claim when contacting Citibank customer support.
Summary: Is the Citi Custom Cash Visa Right for International Spending?
The Citi Custom Cash Visa is a strong card for everyday U.S. purchases, especially when maximizing category-based cash back rewards with no annual fee. However, its 3% international transaction fee makes it less suitable for frequent travelers or those who often shop from non-U.S. retailers.
For the best value abroad:
Consider using a card specifically designed for international use—with no foreign transaction fees and possible travel perks. The Citi Custom Cash Visa shines brightest at home, where it can help you earn generous rewards and keep fees at bay.
Frequently Asked Questions (FAQs)
1. How much are the foreign transaction fees on the Citi Custom Cash Visa card?
The card charges a 3% fee on each transaction made in a foreign currency or processed outside the U.S. This means for every $100 you spend abroad, you’ll pay $3 in fees.
2. Can I use my Citi Custom Cash Visa card internationally?
Yes, your card works worldwide wherever Visa is accepted. However, every international purchase will incur a 3% foreign transaction fee.
3. Is there a way to avoid foreign transaction fees with the Citi Custom Cash Visa card?
You cannot avoid these fees with this specific card when making eligible international purchases. If you want to skip foreign transaction fees, consider applying for a card that explicitly offers no foreign transaction fees.
4. Does the Citi Custom Cash Visa offer any travel benefits or protections?
The card focuses on cash back and does not come with premium travel features such as no foreign transaction fees, airport lounge access, or extensive travel insurance. Check your card’s benefits guide for details on basic protections.
5. Should I get a different Citibank card for international use?
If you travel often, a card that offers no foreign transaction fees may be a better fit. Some other Citibank cards—often in their travel-oriented lineup—offer this perk and may include additional travel benefits as well.
By understanding how international fees work on your Citi Custom Cash Visa card, you can make smarter financial decisions and avoid costly surprises, whether you’re traveling the world or shopping from the comfort of home. Happy (and savvy) spending!