Is a foreign transaction fee always 3 percent?

No. Three percentage points is an example in the official interpretation of Regulation Z, made of a 1 percent network fee and a 2 percent bank fee. Your card agreement has the percentage that applies to you, or it says there is none.

Does a purchase in US dollars outside the United States still count?

The CFPB interpretation says a foreign transaction fee can apply to a transaction in US dollars outside the United States, and to a transaction with a foreign merchant. The card agreement is where your issuer states its own rule.

Where do I see the fee I actually paid?

Look for a separate fee line on the statement, near the purchase. The agreement has the percentage. The statement has the dollar amount charged.

Is this the same as a monthly bank fee?

No. A foreign transaction fee is tied to a purchase or cash advance. A monthly account fee is charged for the account itself. Do not multiply a percentage fee by 12 in the monthly fee calculator.

Guides

Foreign transaction fees explained

A foreign transaction fee is a charge from the card company on a purchase or cash advance that the rules treat as foreign. The percentage is in your card agreement. Do not copy a percentage from someone else's card, and do not treat an example in a regulation as your rate.

What counts as foreign

The official interpretation of Regulation Z, 12 CFR 1026.4, says a charge for a purchase or a cash advance made outside the United States, with a foreign merchant, or in a foreign currency is a finance charge. That includes a purchase in US dollars outside the United States, and a purchase with a foreign merchant, including a website. It can include a fee from the issuer and a fee from the card network.

The regulation gives an example, and only an example: a network may impose 1 percent and the bank an additional 2 percent, for 3 percentage points in total. That example is not a typical fee and it is not your fee. Your agreement has the number that applies to you. If the agreement says there is no foreign transaction fee, there is nothing to multiply.

Where the issuer has to show it

12 CFR 1026.60 says that if there is no foreign transaction fee, the issuer may leave the heading out or state that there is none. If the fee on purchases and the fee on cash advances are different, both must be disclosed.

On the statement, the fee can be its own line, separate from the purchase. Write the date, the purchase amount, and the fee amount. How to read a statement keeps those lines apart. The fee is a card charge, not a subscription. Subscriptions from a statement explains that split.

Canada, prepaid cards, and what this fee is not

The regulation above is a US disclosure rule. On a Canadian card, the fee and any percentage are in the cardholder agreement and on the statement. The Financial Consumer Agency of Canada explains credit card fees at its credit card guide.

On a prepaid card, the CFPB says a foreign transaction fee is usually a percentage of the transaction rather than a flat fee, and that not every prepaid card works outside the United States. See What types of fees do prepaid cards typically charge?

This fee is not a monthly account fee. Do not put a percentage into the bank fee calculator. That calculator multiplies a flat monthly dollar amount by 12.

Questions

Is a foreign transaction fee always 3 percent?: No. Three percentage points is an example in the official interpretation of Regulation Z, made of a 1 percent network fee and a 2 percent bank fee. Your card agreement has the percentage that applies to you, or it says there is none.
Does a purchase in US dollars outside the United States still count?: The CFPB interpretation says a foreign transaction fee can apply to a transaction in US dollars outside the United States, and to a transaction with a foreign merchant. The card agreement is where your issuer states its own rule.
Where do I see the fee I actually paid?: Look for a separate fee line on the statement, near the purchase. The agreement has the percentage. The statement has the dollar amount charged.
Is this the same as a monthly bank fee?: No. A foreign transaction fee is tied to a purchase or cash advance. A monthly account fee is charged for the account itself. Do not multiply a percentage fee by 12 in the monthly fee calculator.

Sources

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