April 22, 2026

Cardholder Benefit: 0 Foreign Transaction Fees

A great benefit to being a Visa® debit or credit card holder at Interior Federal is that we offer NO foreign transaction fees. However, as we approach summer when people tend to vacation the most, we figured it would be a great time to truly explain what no foreign transaction fees mean for you, the cardholder.

Credit Card Foreign Transactions

With Interior Federal’s credit card, you can make purchases abroad with confidence, backed by built-in fraud protection. For added security, you can also submit a travel notification through Visa Access before your trip.

When traveling internationally, it is generally best to pay in the local currency rather than U.S. dollars. This will help you to avoid high merchant conversion fees. Merchants may offer this choice at restaurants or retail locations. It’s helpful to understand the difference between a foreign transaction fee and an exchange rate. Exchange rates are set by Visa, the merchant, or the ATM provider—not the credit union. Many financial institutions charge a foreign transaction fee (a surcharge on processing purchases from outside the U.S.) for purchases made outside the U.S.; however, Interior Federal does not charge any additional fees for international purchases.

Example: Credit Card with NO Foreign Transaction Fee

Scenario: You’re traveling in France and spend €100 on a hotel

  • The exchange rate converts €100 → $108
  • The Foreign Transaction fee: $0
  • Total Charged: $108

Interior Federal did NOT add in the usual 1% -3% fee.

Debit Card Foreign Transactions

While using any debit card abroad is not the preferred option, here is what you can expect when the occasion presents itself.

ATM transactions operate slightly differently. International ATM operators may charge their own fees, which are separate from Interior Federal. The credit union covers the first five foreign (ATMs not owned/operated by Interior Federal inside or outside of the U.S.) ATM transactions each month at no charge. While you may see exchange rate or ATM fee charges on your statements from the ATM vendor, Interior Federal does not impose additional fees.

As described above, there is a currency conversion rate used to determine the transaction amount in U.S. Dollars and is either a government-mandated rate or the wholesale rate in effect increased by 1%. This charge will appear on your statements, but, as with ATMs and credit cards, the Credit Union does not charge additional fees.

Click here to discover easy ways to protect your money while traveling.

Example: Debit Card ATM Withdrawal with NO Foreign Transaction Fee

Scenario: You’re traveling in Japan and need cash for small purchases

  • You use your Interior Federal Debit Card that does not charge foreign transaction fees
  • You withdraw ¥30,000 from an ATM owned by a local Japanese bank

What Happens:

  •  Exchange rate converts ¥30,000 → $200
  • Interior Federal’s foreign transaction fee: $0
  • Interior Federal’s “foreign” ATM withdrawal fee: Free for the first 5 withdrawals in a month
  • Local ATM operator fee: ¥200 (~$1.50)

Final Cost:

  • Amount withdrawn $200
  • Local ATM fee: ~$1.50
  • Total debited: $201.50

Summary:

  • There is no percentage-based foreign transaction fee added by Interior Federal
  • The exchange rate is typically the Visa®/Mastercard® daily rate
  • The local ATM fee is not a foreign transaction fee – it is charged by the ATM owner, not Interior Federal
  • Interior Federal did NOT add in the usual 1% -3% fee.