Foreign Transaction Fees: 3 Ways to Pay Less

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.

1. Before traveling or shopping on an overseas website, search for the DCC blocking option in your card issuer’s app.
2. Check whether overseas payments in won are blocked for each card you plan to use.
3. On the payment screen, choose the merchant’s local currency.
4. 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.

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Check local ATM costs separately, even if your card 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.

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.

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)

1. Check whether your destination’s currency is supported.
2. Link the required foreign currency account or topped-up balance.
3. Check the international brand fee and card issuer fee separately.
4. Calculate cashback after accounting for spending requirements and payout limits.
5. 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.

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.

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.

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.

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.

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.

1. Check the payment currency and amount on the receipt.
2. Check the applied exchange rate and fees in your card transaction history.
3. Check whether waivers or cashback were applied according to the agreed terms.
4. If there is a difference, prepare the receipt and transaction history and contact the card issuer.