Foreign Transaction Fees: 3 Ways to Pay Less ============================================ To reduce the cost of payments abroad, choose the local currency and compare the total cost of cash and card payments. Card fee waivers do not cover local ATM fees, and you should also check the terms for converting any leftover foreign currency back. - Enable your card issuer's block on overseas payments in Korean won and select the local currency on the payment screen. - Compare the total cost of exchanging cash and paying by card for the same amount in the local currency. - Check the card's fee waiver terms and when its benefits take effect, then review ATM fees and the cost of converting leftover currency back. To reduce overseas payment fees, pay in the local currency. Compare cash and cards by their total cost, including exchange rates. Check the conditions for card benefits and fee waivers. Local ATM fees and the cost of converting leftover foreign currency back to won may be charged separately. The Toss Bank overseas payment fee figures are based on its notice effective August 11, 2026. 1. Block payments in won and choose the local currency Choosing the local currency lets you avoid conversion costs from DCC. DCC is a service through which an overseas merchant or ATM converts a payment into won. The exchange rate used may include an additional cost. Visa requires DCC screens to show the exchange rate and any additional costs. They must also show the amount in the local currency and the cardholder’s currency. The merchant cannot choose the currency for the cardholder. Before traveling or shopping on an overseas website, search for the DCC blocking option in your card issuer’s app. Check whether overseas payments in won are blocked for each card you plan to use. On the payment screen, choose the merchant’s local currency. Check the payment currency shown on the receipt. Shinhan Card’s “Comprehensive Guide to Overseas Card Use” explains: From the time you register for the blocking service, payments in won (KRW) are declined, and you can make transactions in dollars or the local currency. Blocking DCC is different from blocking all overseas card use. If a transaction in won is declined, ask to pay again in the local currency. If a payment is processed in a currency you did not want, keep the receipt. You can then ask the merchant and card issuer how to handle it. Payment currency for overseas online shopping Check the final authorized currency when shopping on overseas websites, too. A price shown in won on a product page may simply be a converted price. Do not assume DCC applies based only on the displayed currency. Check both the currency and the conversion terms at checkout. Paying in the local currency does not eliminate card fees. International brand fees cover the use of payment networks such as Visa or Mastercard. The card issuer may also charge a separate overseas-use fee. Check your card’s product information to see whether these fees are waived. 2. Compare the total cost of cash and cards Cards are not always cheaper than cash. Compare the cost in won of spending the same amount in the local currency. The preferential exchange rate alone is not enough to determine which option costs less. You do not necessarily have to convert through dollars to obtain a Southeast Asian currency. Hana Bank’s “Personal Banking Currency Exchange Wallet Service Guide” provides an example. As of February 3, 2026, the currencies available for exchange include THB and VND, the Thai baht and Vietnamese dong, respectively. Another option is to buy dollars and exchange them again locally. In that case, compare the combined cost using the actual exchange rates for both transactions. Distinguish a bank’s internal exchange-rate calculations from a customer’s currency exchange transactions. It is inaccurate to say that every trip involves four currency exchange fees. Payment method Costs to compare Conditions to check before choosing Exchange for local currency cash in a bank app Cost of buying cash after the preferential rate is applied Available currencies and stock at the pickup location Buy dollars, then exchange them locally Combined cost of the two exchanges Amount actually received at the local exchange counter Pay in the local currency with a regular card Applied exchange rate and card fees Overseas benefits and additional merchant charges Pay by card using a foreign currency balance Cost of buying foreign currency and costs not covered by fee waivers Supported currencies and linked payment account Withdraw cash from a local ATM Conversion costs and withdrawal-related fees Operator fees and waiver limits Where cards are accepted, you can consider a card with waived fees. If you plan to visit places that accept only cash, prepare the cash you need. Set the share of your budget held in cash according to payment options at your destination. 3. Check the conditions for card benefits Compare what you actually gain from a card, not just its cashback rate. Some products charge overseas fees even while offering cashback. Preferential currency exchange and waived card payment fees are also separate benefits. Toss Bank changed its overseas payment benefits from August 11, 2026. Its previous 2% cashback on payments was replaced with fee waivers. You must link a foreign currency account as the account for overseas payments to receive them. Item to check Travelog debit card Toss Bank debit card and foreign currency account How it works Top up foreign currency Hana Money before paying Link a foreign currency account for overseas payments Overseas merchant fees International brand and overseas service fees waived when paying with foreign currency Hana Money International brand fee of 1% and USD 0.5 per transaction waived from August 11, 2026 Currency exchange benefit Free exchange for USD, JPY, EUR, and GBP at all times Check supported currencies and exchange terms in the official product information Time-limited conditions Free exchange for the other 54 currencies is listed as available through December 31, 2026 Distinguish past cashback information from current fee-waiver conditions Local ATM operator fees Not covered by the waiver May be charged separately The end date of the Travelog promotion applies to the currencies eligible for free exchange. It does not mean all overseas-use benefits end that day. Before departure, check the latest product information from Hana Money and Toss Bank. (Verified details: Hana Money: Of 58 currencies in total, 4 qualify for free exchange at all times; the other 54 qualify through December 31, 2026. Toss Bank: With a linked foreign currency account, the overseas payment fee of 1% and USD 0.5 per transaction are waived; overseas ATM withdrawal fees: · Source app.hanamembership.com · Checked 2026-10-14) Check whether your destination’s currency is supported. Link the required foreign currency account or topped-up balance. Check the international brand fee and card issuer fee separately. Calculate cashback after accounting for spending requirements and payout limits. If you are getting a new card, include any annual and issuance fees in the comparison. Calculation example: Extra cost of paying in won Suppose a DCC cost of 8% is added to the same base amount. The figures below are calculation examples showing how the cost works. They do not guarantee an actual DCC fee rate or amount saved. Base amount before DCC cost Assumed additional cost rate Calculation Additional cost 300,000 won 8% 300,000 won × 0.08 24,000 won 1,000,000 won 8% 1,000,000 won × 0.08 80,000 won For an actual comparison, use the exchange rate and additional costs shown on the payment screen. You cannot assume DCC costs 3–8% on every transaction. The card’s own overseas fees are excluded from this example. Subtract cashback only after checking the conditions under which it applies. Overseas ATM fees by condition Check fees charged by the card issuer and the local ATM operator separately. A waiver of the card’s withdrawal fee does not eliminate the total cost. DCC may also apply if an ATM offers to convert the withdrawal into won. Cost item Where to check What to look for International brand and card issuer withdrawal fees Card product information Transactions covered by the waiver and limits on frequency and amount Local ATM operator fee ATM screen and the operator bank’s fee schedule Charge applied to each transaction ATM currency conversion cost Screen before approving the withdrawal Terms for local currency and won conversion Toss Bank lists waiver limits of 5 withdrawals and USD 700 per month. Fees apply once either limit is exceeded. Local operator fees are also included when calculating the USD 700 limit. Check the official debit card benefits information for the exact calculation on transactions that exceed a limit. (Verified details: If the monthly limit of 5 withdrawals is exceeded before or at the same time as the USD 700 limit, the fee from the sixth withdrawal is 1% of the withdrawal amount + USD 3. If the USD 700 limit is exceeded first, the fee on the transaction that exceeds it is 1% of the amount over USD 700 + USD 3; thereafter · Source tossbank.com · Checked 2026-10-14) Do all Thai ATMs charge 220 baht? You cannot assume a uniform ATM fee of 220 baht across Thailand. Krungsri’s fee schedule effective March 11, 2026, lists different amounts. The following fees apply to withdrawals at that bank’s ATMs using cards issued abroad. Card brand Krungsri operator fee Mastercard 350 THB per transaction Visa 250 THB per transaction UnionPay 250 THB per transaction JCB 250 THB per transaction These are not standard fees for all ATMs in Thailand. Check the screen of the ATM you use before approving the transaction. If the fee is a fixed amount per transaction, making fewer withdrawals reduces the cost. Also consider withdrawal limits and the burden of carrying cash. Compare the cost of converting leftover foreign currency back to won Even if buying foreign currency is free of exchange fees, converting it back to won may cost money. Check the refund terms before exchanging your entire travel budget in advance. Exchange-rate movements can result in gains or losses even when there is no exchange fee. Form of leftover funds What to check when converting to won Foreign currency cash Exchange rate applied when selling cash and denominations the bank will buy Travelog foreign currency Hana Money 1% refund fee deducted from the amount converted to won at the refund exchange rate Toss Bank foreign currency account balance Information on waived fees for conversion back to won and the exchange rate actually applied A different method is used to set Travelog’s refund exchange rate for some currencies. Do not calculate the final amount you will receive based only on the refund fee. Check the estimated refund amount in the Hana Money app. You can compare cash exchanges using the actual amount in won the bank will pay. Common mistakes when comparing overseas payment costs Confusing the names of fees and what they cover can lead to incorrect savings calculations. Card benefits vary by payment currency and how the card is used. Distinguish the following before making a transaction. Common assumption What to check Paying in the local currency eliminates all fees DCC costs and the card’s own fees are separate A 100% preferential exchange rate also eliminates losses from exchange-rate movements Preferential exchange terms and exchange-rate movements are separate A waived ATM fee also eliminates local operator fees Operator fees may be charged separately Conditions in an old cashback article still apply Check the product’s effective date and current benefits Converting an overseas payment to installments also reduces overseas fees Installment costs and overseas-use costs are separate Free currency exchange means leftover foreign currency can also be converted back for free Check the terms for converting back to won separately What to check after paying Check both the receipt and card transaction history to determine the actual cost. An ATM receipt may not show fees charged by the card issuer. If a cost differs from what you expected, ask about it using the transaction records. Check the payment currency and amount on the receipt. Check the applied exchange rate and fees in your card transaction history. Check whether waivers or cashback were applied according to the agreed terms. If there is a difference, prepare the receipt and transaction history and contact the card issuer. FAQ Q. Which currency should I pay in instead of won when abroad? A. Choose the merchant's local currency. In Japan, choose JPY; in places that use the euro, choose EUR. Your card's foreign transaction fees may still apply separately even if you choose the local currency. Q. If I block DCC, will I be unable to use my card abroad? A. Blocking overseas payments in won prevents overseas transactions from being processed in won. It is different from blocking all overseas card use. If a transaction in won is declined, ask to pay in the local currency instead. Q. If an overseas shopping site shows prices in won, is it always DCC? A. A price shown in won may be just a conversion. Check the final payment currency and exchange terms to determine whether DCC applies. Q. Is using a card always cheaper than cash when traveling in Southeast Asia? A. Not always. Compare the exchange rate for cash and card fees based on the same amount. You should also check whether cards are accepted and whether there are any additional local costs. Q. Do I have to exchange through dollars to get Southeast Asian currencies? A. Not necessarily. Hana Bank's currency exchange wallet guide as of February 3, 2026, includes THB and VND among the currencies available for exchange. Check the application screen and pickup location to see whether you can actually receive them. Q. Does the Toss Bank debit card still offer 2% cashback on overseas payments? A. The August 11, 2026, notice replaced the previous 2% cashback on overseas payments with a fee waiver. Check the requirement to link a foreign currency account as your overseas payment account. Q. Does Travelog offer fee-free currency exchange for all currencies at all times? A. The official guidance distinguishes USD·JPY·EUR·GBP as currencies with fee-free exchange at all times. The fee-free exchange promotion for the other 54 currencies is listed as running until December 31, 2026. Before using it, check which currencies are eligible and whether the promotion has been extended. Q. If my card waives overseas ATM fees, does that mean withdrawing cash costs nothing? A. The local ATM operator may charge a separate fee. Additional fees may also apply if you exceed your card issuer's limit on the number or amount of fee-free withdrawals. Before approving a withdrawal, check the ATM screen and your card's terms. Q. Are ATM fees in Thailand always 220 baht? A. You cannot assume the fee is always 220 baht. Krungsri's fee schedule effective March 11, 2026, specifies 350 THB per transaction for foreign-issued Mastercard cards. The fee for Visa, UnionPay, and JCB is 250 THB per transaction, and different terms may apply at other ATMs. Q. Can I convert the foreign currency left on a fee-free exchange card back into won without a fee? A. It depends on the product. Travelog lists a separate exchange rate and fee for converting funds back. Toss Bank says there is no fee for converting back to won, but exchange rate changes can still result in gains or losses. Q. Is the extra cost of DCC always 3% to 8%? A. The same range does not apply to every transaction. Check the exchange rate and additional costs on the actual payment screen. The 8% calculation in the main text is an assumption used to illustrate the scale of the cost. Sources - Visa: Dynamic Currency Conversion Explained: https://www.visa.co.uk/travel-with-visa/dynamic-currency-conversion.html - Shinhan Card: Comprehensive guide to overseas use and blocking overseas KRW payments: https://www.shinhancard.com/pconts/html/helpdesk/guide/CONFM90017/CONFM90017R04.html - Hana Bank: Personal Banking Currency Exchange Wallet service guide, as of February 3, 2026: https://image.kebhana.com/cont/download/documents/manual/0000020260313_20260313_m.pdf - Hana Money: Travelog check card overseas benefits and refund conditions: https://app.hanamembership.com/gw/gsp/gSP00201m.do - Toss Bank: Check card overseas payment fee waiver, as of August 11, 2026: https://www.tossbank.com/articles/checkcard-payment-fee-free - Toss Bank: Check card overseas benefits and ATM fee waiver limits: https://www.tossbank.com/card/benefits?tab=2 - Krungsri: ATM withdrawal fees for foreign-issued cards, effective March 11, 2026: https://www.krungsri.com/getmedia/546f2617-8522-47b8-9b06-6c2cb49f32d0/fee-withdrawal-via-atm-for-international-card-11032026-en Images - At an outdoor market, a traveler puts a card into a wallet while holding a bag of apples.: https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MjgxNzgsInB1ciI6ImJsb2JfaWQifX0=--d020ad2fc7435ee603bd7e81ef18f1f3218b9fa0/ai-e03b2ea0.webp - Middle-aged man in a gray jacket using a street ATM beside a wet sidewalk: https://injoys.com/rails/active_storage/blobs/proxy/eyJfcmFpbHMiOnsiZGF0YSI6MjgxODQsInB1ciI6ImJsb2JfaWQifX0=--0380fc6363da912a61049d3c7818aa7930914e46/ai-a72f095f.webp --- Category: How-to Source: https://injoys.com/en/articles/reduce-overseas-card-payment-fees License: cc_by Translation-Status: reviewed