The Costco Anywhere Visa Card has no foreign transaction fee

The Costco Anywhere Visa Card by American Express charges zero foreign transaction fees when you use it outside the United States, Canada, or Mexico. This applies to all purchases made in foreign currencies or processed through foreign banks, whether you are traveling or buying from an international merchant online.

The Costco Anywhere Visa Card is the only credit card Costco issues directly. If you hold a Costco Cash Card (the warehouse membership card) or a Costco Anywhere Visa Card for American Express, you have the no-fee card. There is no separate "premium" or "travel" version with different terms — all Costco Anywhere Visa cardholders get the same foreign transaction fee structure.

This benefit applies to the primary cardholder and any authorized users on the account. If someone else is using a card linked to your account, they will not incur foreign transaction fees either.

Key Takeaways

  • The Costco Anywhere Visa Card charges no foreign transaction fees on any purchase made outside the United States, Canada, or Mexico.
  • This is the only Costco-branded credit card available, so all cardholders receive the same foreign transaction fee benefit.
  • The no-fee structure applies to both in-person transactions and online purchases from international merchants.
  • Authorized users on your account also make purchases without foreign transaction fees.
  • You still pay the annual membership fee to shop at Costco, separate from the credit card annual fee.

How foreign transaction fees work on other cards

Most credit cards charge between 1% and 3% of the transaction amount as a foreign transaction fee whenever you spend money outside the United States. This fee is added to your bill by the card issuer, not by the merchant or the foreign bank — you see it as a separate line item on your statement.

The fee applies even if you are shopping at a U.S. chain while traveling abroad, because the transaction is processed through a foreign payment network. It also applies to online purchases from foreign merchants, even if you are sitting at home in the U.S., because the merchant's bank is located outside the country.

Some cards waive the fee for premium cardholders or charge it only on cash withdrawals at ATMs, not on purchases. The Costco card structure is simpler: no foreign transaction fee on any purchase, anywhere.

When the no-fee benefit saves you money

The foreign transaction fee benefit matters most if you travel internationally more than once or twice a year, or if you regularly buy from international online merchants. On a $1,000 purchase abroad, a typical 2% foreign transaction fee would cost you $20. Over a week-long trip with $5,000 in spending, you could save $100 or more by using the Costco card instead of a card that charges the fee.

The benefit also applies to currency conversion itself. When you spend money in a foreign currency, your card issuer converts it to U.S. dollars using an exchange rate. The Costco card uses the Visa exchange rate, which is typically competitive. Some cards add a markup on top of the exchange rate, which functions as a hidden fee on top of the stated foreign transaction fee.

If you rarely travel and do not buy from international merchants, the foreign transaction fee benefit is less relevant to your decision about whether to carry the card. In that case, the rewards rate and annual fee become the primary factors.

Other rewards and benefits on the Costco card

The Costco Anywhere Visa Card earns cash back on all purchases: 4% at Costco gas stations, 3% at Costco warehouses and on travel booked through Costco Travel, and 1% on all other purchases. These rates explore worldwide, so you earn the same cash back on foreign purchases as you do at home.

The card also includes travel protections such as trip cancellation insurance, trip delay reimbursement, and emergency medical and dental coverage when you are traveling outside the United States. These benefits do not require you to book your trip through Costco Travel — they cover any trip you take while holding the card.

The card carries a $65 annual fee, which Costco waives for the first year. You must also hold a Costco membership to use the card; membership costs $60 per year for a Gold Star membership or $120 for an Executive membership.

How to use the card abroad without surprises

Notify your card issuer before you travel, even though the Costco card has no foreign transaction fees. American Express may still flag foreign transactions as unusual activity and temporarily block your card if you do not tell them you are traveling. You can call the number on the back of your card or use the American Express mobile app to set your travel dates.

Use the card at ATMs sparingly. While the card has no foreign transaction fee, your bank or the foreign ATM operator may charge you a fee for the cash withdrawal itself. This is separate from the foreign transaction fee and is charged by the ATM network, not by American Express. Paying with the card at merchants is cheaper than withdrawing cash.

Check the exchange rate before you make large purchases. The Visa exchange rate is set daily and is the rate your purchase will be converted at. You can look up the current rate on Visa's website to estimate what you will be charged in U.S. dollars.

Comparing the Costco card to other no-fee options

Several other credit cards also charge no foreign transaction fees, including the Chase Sapphire Preferred, the Capital One Venture X, and the American Express Gold Card. These cards typically charge higher annual fees ($95 to $550) but offer higher cash back rates or points on certain categories like dining or travel.

The Costco card is simpler and cheaper if you shop at Costco regularly and do not need premium travel benefits. You are already paying for a Costco membership, so the card's $65 annual fee is an additional cost. If you do not shop at Costco, the membership requirement makes the card unavailable to you, regardless of the foreign transaction fee benefit.

If you travel frequently and want the most comprehensive travel protections, a premium card like the Sapphire Preferred or Gold Card may offer more value despite the higher annual fee. The Costco card is best suited to people who are already Costco members and want a straightforward card with no foreign transaction fees and solid cash back on warehouse purchases.

Frequently Asked Questions

Do I pay a foreign transaction fee if I use my Costco card at a Costco warehouse outside the U.S.?

No. Costco warehouses in Canada and Mexico are considered domestic transactions for the purposes of the foreign transaction fee, so you pay no fee. If you use the card at a Costco warehouse in any other country, you also pay no foreign transaction fee, because the Costco card has no foreign transaction fees anywhere.

What if I use a different card while traveling and want to know if it has a foreign transaction fee?

Check your card's terms and conditions document, which you can find on your issuer's website or by calling the number on the back of the card. Search for "foreign transaction fee" in the document. If the fee is not listed, the card does not charge one.

Does the Costco card protect me if I dispute a foreign purchase?

Yes. American Express offers purchase protection and fraud liability protection on all Costco card purchases, including those made abroad. If a foreign merchant charges you incorrectly or you do not receive what you ordered, you can dispute the charge with American Express the same way you would for a domestic purchase.

Can I use the Costco card to withdraw cash from ATMs in other countries without a fee?

The Costco card has no foreign transaction fee, but the ATM operator or your bank may charge a separate ATM fee for the cash withdrawal. This fee comes from the ATM network, not from American Express, so the Costco card cannot waive it. Using the card to pay merchants is cheaper than withdrawing cash.

If I close my Costco membership, do I lose the credit card?

American Express will close your Costco Anywhere Visa Card if your Costco membership ends. You cannot keep the card without an active membership. If you rejoin Costco later, you can reapply for the card.