Credit Card Foreign Transaction Fees in Singapore

    Credit Card Application

    Every credit card that you sign up for, has several other charges embedded in the services it offers. These may be add-on services or may seem trifle until you are charged for it.

    Those who travel outside Singapore or buy goods from international websites using Credit Cards , have to pay the processing fee applicable for this service.

    You may attract three types of international credit card charges:

    • Foreign currency fees
    • Cash advance/ATM fees

    Foreign Currency Transaction fees

    Whenever you transact using a foreign currency, you have to pay the foreign transaction fee (FX). Earlier dealing with foreign currency only outside Singapore was considered to be applicable for this fee. Now any transaction you make using foreign currency, whether in Singapore (like online transactions) or outside is liable for a foreign transaction fee

    Your bank along with the payment system like MasterCard and Visa charge you an amount for the conversion of currency and the processing of it. It includes the following types of transactions using your credit card:

    • Payment made virtually to a foreign website using Singapore dollar which accepts payments only in a foreign currency.
    • Payment made physically to merchants outside Singapore.

    In other words, the bank will levy a charge when you make a foreign transaction whether outside Singapore or when in Singapore. The payment network will also impose an additional fee.

    There is, however, no uniform rate regarding this. Foreign currency levied by banks may vary.

    Foreign currency fee is made of two parts which is, the admin fee of banks and the cross border fee and the currency conversion fee known as Dynamic Currency Fee (if applicable).

    Cash advance or ATM usage fee

    If you make a cash advance on a credit card or use ATM anywhere outside Singapore, you will be charged an overseas withdrawal fee along with a cash advance fee. Again, this fee differs from bank to bank.

    Credit card charges for international usage in Singapore

    The transactions you make in US dollars are converted to Singapore dollars and transactions made in all other foreign currencies will first be converted to US dollars and then to Singapore dollars. The cost of this double conversion is procured from the customers. The credit card charges for international usage of most of the banks are around the same figures. The following table gives an idea of these charges:

    Foreign exchange rate Determined by Visa Determined by American Express
    Currency conversion charge 1% 1%
    Administration fee 1.8% 2%
    Total fees 2.8% plus the prevailing exchange rate 3% plus the prevailing exchange rate

    The other related charges will change from bank to bank. The easiest way to know the charges while using foreign currency is to read the fine print while signing up for a card.

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