Foreign transaction fees are one of the most common—and avoidable—costs expats face in the Netherlands. Whether you are using your home-country card for purchases, sending money abroad, or shopping on international websites, these fees can add up to hundreds of euros per year. Here is how to minimise them.
What Are Foreign Transaction Fees?
Foreign transaction fees (also called FX fees or currency conversion fees) are charges applied when you make a transaction in a currency other than your card's home currency. They typically have two components:
- Card network fee: Visa and Mastercard charge 1% for cross-border transactions
- Bank markup: Your bank or card issuer adds their own margin, typically 0.5-2% on top
Combined, these can result in a 1.5-3% fee on every foreign-currency transaction. On a EUR 1,000 holiday abroad, that is EUR 15-30 in hidden fees.
Where Fees Hit Expats Hardest
- Using home-country cards in the Netherlands: If you are still using a card from your home country for daily spending, you are paying foreign transaction fees on every purchase
- Dutch credit cards abroad: Most Dutch credit cards (including ICS Visa cards) charge 2% on non-EUR transactions
- Online shopping from non-EU sites: Buying from US, UK, or other non-EUR websites with a Dutch credit card triggers fees
- ATM withdrawals abroad: Cash withdrawals in foreign currencies often incur both the FX fee and an ATM fee
- International money transfers: Bank transfers in foreign currencies include hidden exchange rate markups
How to Avoid Them
1. Use a Fee-Free Card for Foreign Spending
The simplest solution is to use a card with no foreign transaction fees. The best options available in the Netherlands:
- Revolut: 0% FX fee on weekday spending (within limits on the free plan). The best option for travel and foreign-currency purchases
- Wise card: Uses the mid-market rate with a small transparent fee (usually 0.3-0.5%). Better than most alternatives
- N26: 0% FX fee on card payments in all currencies. Free plan available
2. Always Pay in the Local Currency
When paying abroad (or online), you may be offered the choice to pay in euros or the local currency. This is called Dynamic Currency Conversion (DCC). Always choose the local currency.
DCC rates are set by the merchant's payment provider and almost always include a terrible exchange rate—often 3-5% worse than the market rate. Even with a card that charges FX fees, paying in the local currency and letting your bank do the conversion is cheaper than accepting DCC.
3. Use Wise for International Transfers
For sending money abroad, specialised transfer services like Wise offer significantly better exchange rates than banks. Wise uses the real mid-market rate with a transparent fee, while Dutch banks typically add a 1-3% markup to the exchange rate.
4. Get a Multi-Currency Account
If you regularly deal in multiple currencies (perhaps you receive income in GBP and spend in EUR), a multi-currency account from Wise or Revolut lets you hold, receive, and spend in different currencies without constant conversion fees.
5. Plan ATM Withdrawals
When withdrawing cash abroad:
- Use your Revolut or Wise card for the best rates (free up to EUR 200/month)
- Withdraw larger amounts less frequently to minimise per-transaction ATM fees
- Decline DCC at the ATM—always choose to be charged in the local currency
- Avoid airport ATMs, which often have the worst rates and highest fees
Annual Savings Potential
Switching from a standard Dutch credit card (2% FX fee) to a fee-free alternative for foreign spending can save a typical expat:
- Frequent travellers: EUR 200-500 per year
- Regular international shoppers: EUR 100-200 per year
- Regular money transfers home: EUR 500-2,000+ per year (depending on amounts)
The savings are real and require minimal effort. Set up a Revolut or Wise card once, and use it whenever you are spending in a foreign currency. Keep your Dutch debit card for domestic purchases where FX fees do not apply.
For more on optimising your financial setup, compare credit cards to find the best fees for your spending pattern.