Will you pay foreign transaction fees in U.S. territories like Puerto Rico?

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We get lots of questions regarding which card to use for particular situations  — one of the most common being about the best cards to use abroad to avoid transaction fees. So you might be wondering: “Will using a credit card that charges foreign transaction fees in U.S. territories like Puerto Rico incur fees?”

In short, purchases made in Puerto Rico (and other U.S. territories like American Samoa, Guam, Northern Mariana Islands, or the U.S. Virgin Islands) are not considered foreign transactions.

Banks won’t charge foreign transaction fees for purchases made in these locations. And in fact, the official currency of all U.S. territories is the U.S. dollar. So again, charges made in U.S. dollars in any U.S. territory will not incur foreign transaction fees.

If you have credit cards issued by smaller banks or a credit union, it could be worth calling the number on the back of your card to confirm their policies before you travel. But when it comes to the best credit cards for travel, you won’t have to worry about incurring any extra fees.

And remember, to avoid being charged extra when you travel outside of the U.S. and its territories, use a card that does not charge foreign transaction fees. And preferably one that earns bonus miles and points for travel, like the Chase Sapphire Preferred® Card or Chase Sapphire Reserve®.

Featured image by Songquan Deng/Shutterstock.

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