Update: One or more card offers in this post are no longer available. Check our Hot Deals for the latest offers.
Million Mile Secrets reader Antonio commented:
Will using a credit card that charges foreign transaction fees, such as the Citi AAdvantage Platinum Select Mastercard, in Puerto Rico incur fees? I wasn’t sure if Puerto Rico was considered “foreign” to US banks.
Great question, Antonio!
Purchases made in Puerto Rico (and other US territories like American Samoa, Guam, Northern Mariana Islands, or the US Virgin Islands) are generally NOT considered foreign transactions.
I can’t guarantee the rules for every bank. I called the major banks and NONE add foreign transaction fees to purchases made in US territories.
But a few require the purchase to be in US dollars! I’ll explain.
You Won’t Pay Foreign Transaction Fees in US Territories With Major Bank Cards
Note: Discover and Capital One do NOT add foreign transaction fees to any of their cards – anywhere!
If you have credit cards issued by smaller banks, call the number on the back of your card to confirm their policies before you travel.
1. American Express
I called American Express and they assured me that charges made in US dollars in ANY US territory will NOT incur foreign transaction fees.
The official currency of all US territories is the US dollar, so this shouldn’t be a problem!
So you can use cards which normally add foreign transaction fees, like the American Express Everyday Preferred or the Hilton Honors Card from American Express without worrying about paying extra!
2. Bank of America
Bank of America will NOT add foreign transaction fees to purchases made in ANY US territory.
If you’re collecting Alaska Airlines or Virgin Atlantic miles, you can safely use cards like the Bank of America Alaska Airlines or Bank of America Virgin Atlantic without paying foreign transaction fees.
3. Barclaycard
You will not pay foreign transaction fees using ANY Barclaycard in ALL US territories.
Cards like the Barclaycard Wyndham and Barclaycard Choice Privileges normally add foreign transaction fees. But you’re safe using them in US territories (to pay for your hotel stays, for example) without being charged a fee!
4. Chase
I spoke to a Chase representative who said transactions made on ANY Chase card in any US territory will NOT have foreign transaction fees added.
There are Chase cards with great 5X category bonuses, like the Chase Freedom or Chase Ink Business Cash Credit Card, which normally add foreign transaction fees. So remember to bring these cards with you when you travel to US territories!
5. Citi
As long as the charges are made in US dollars, you won’t pay foreign transaction fees in US territories using ANY Citi card.
So Antonio can use his Citi® / AAdvantage® Platinum Select® World Elite™ Mastercard® on his trip to Puerto Rico!
6. US Bank
You won’t pay foreign transaction fees in US territories with US Bank cards, either.
Folks could use their US Bank Club Carlson card to earn 5X points everywhere when they travel to US territories.
What About Other North American Destinations?
Even though we’re close neighbors, purchases made in Canada and Mexico will incur foreign transaction fees. It might still be worth it for some folks, because the US dollar is strong against the Canadian dollar and Mexican peso this year.
To avoid being charged extra when you travel outside of the US and its territories, use a card that does NOT charge foreign transaction fees.
And preferably 1 that earns bonus miles and points for travel, like:
- Barclaycard Arrival Plus World Elite Mastercard – 2.1% back on travel when you redeem for $100+ travel purchases
- Chase Sapphire Preferred – 2X Chase Ultimate Rewards points on travel
- Citi Prestige – 3X Citi ThankYou points on travel
- Citi ThankYou Premier – 3X Citi ThankYou points on travel
Bottom Line
Major credit card issuers do NOT charge foreign transaction fees on purchases made in US territories like Guam, Northern Mariana Islands, Puerto Rico, or the US Virgin Islands.
I checked with the big banks, but if you have a credit card from a local or smaller financial institution, it’s best to call and check their policy.
And the safest bet is to always use cards that don’t add foreign transaction fees when you travel abroad!
Thanks for the question, Antonio!
All cards I’ve used in Puerto Rico do not have foreign transaction fees. Puerto Rico ComonWealth is USA territory. All works as any state. Go to school again! BTW is a dumb question
NEWSFLASH!! I was charged a $15 fee at BofA when I used my debit card to book a hotel room even though the transaction was USD. I was so upset and was going to switch to Chase after being with BofA for 15yrs but the chase rep told me that they also consider Puerto Rico a foreign territory as well as the Virgin Islands. Gotta love this capitalistic society.
Cannot speak about debit with Chase or Bank of America but regarding credit cards, I haven’t been charged any fee whatsoever from Chase nor Bank of America in Puerto Rico. I also have Amex and Discover credit card with the same result, no fees. Lastly, a Discover debit that also doesn’t get any fees not even in affiliate ATMs. Not only that, special card benefits like price protection, return protection, etc, of some cards also work in Puerto Rico without any issue.
What I do think is that there’s a lot of misinformed Americans in the banking industry regarding anything that involves Puerto Rico.
Actually bank of America just told me there is a 3% fee on every transaction with my debit card… not just ATM withdrawals in puerto rico. If i use thier partner bank they wave the per transaction fee, but NOT the the 3% fee. My alaska air mile BOA card doesnt have a fee go figure… after much protesting that its not international, but a territory that uses us money… where my car insurance covers me, the state department doesnt require a passport so why do they consider puerto rico international they said theyd put a waiver on my debit card for the 3 % fee. I fly out in a couple of days so we will see…
Puerto Rico is territory of USA and their banks are monitored by federal government bank laws and some banks charge some fees and some dont. The fee is not to convert the US dollar to US dollar like someone wrote here, the fee is for the service at the ATM.If that bank accepts your card because is an affiliate of the bank it might not charge you nothing, if not some fee might apply. But if you have a doubt ask your bank before you travel and ask them which banks in territories are free of fee charge. That simple, by the way dont walk with too much cash on you outside continental US.
Actually Will– US Bank does charge 2% of every PR transaction for their Cash+ card. I’m glad I called to check. (I checked with two different US Bank numbers, both the number on the back of the card, as well as my local branch). Anywhere out of the 50 states is considered foreign. 2% for American territories charged in US dollars, 3% if it needs to be converted.