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 add up. 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:
- Exchange rate: Visa or Mastercard converts the amount at its own daily rate, which can differ slightly from the official European Central Bank (ECB) rate
- Bank markup: Your bank or card issuer adds its own percentage on top
EU rules require banks to publish this total as a percentage above the ECB rate, so you can compare cards. See current markups in our credit card comparison.
Where Fees Hit Expats Hardest
- Using home-country cards in the Netherlands: If you are still using a card from a home country outside the eurozone for daily spending, you are likely paying a currency conversion fee on every purchase
- Dutch credit cards abroad: Most Dutch credit cards add a currency conversion markup to non-euro transactions. Compare them in our best credit cards for travel
- Online shopping in other currencies: Buying from websites that charge you in US dollars, pounds or another non-euro currency triggers the card's conversion markup
- 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 add an exchange rate markup on top of the transfer fee
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. Options available in the Netherlands:
- Revolut: No Revolut exchange fee on weekdays up to a monthly limit on the free plan; a fee applies above the limit and at weekends
- Wise card: Uses the mid-market rate plus a conversion fee that varies by currency
- N26: No N26 fee on card payments in other currencies; Mastercard's exchange rate applies. 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 are almost always worse than your own card's rate. In EU countries that use another currency, the terminal or ATM must show the markup over the European Central Bank rate and tell you that you can pay in the local currency instead. Even with a card that charges FX fees, paying in the local currency and letting your bank do the conversion is usually 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 add their own exchange rate markup on top of a fixed transfer fee. For online transfers, EU rules require your bank to show the estimated total cost before you confirm.
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 a card with low foreign-currency fees, and check its free monthly withdrawal allowance before you travel
- 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
- If the ATM shows its own withdrawal fee, you can cancel and try another machine
If your Dutch debit card is refused outright outside Europe, the cause is usually not a fee but a setting: see using a Dutch bank card abroad.
Putting It Together
Set up one card with low foreign-currency fees, and use it whenever you are spending in a foreign currency. Keep your Dutch debit card for payments in euros, in the Netherlands and the rest of the eurozone, where no currency conversion applies.
For more on optimising your financial setup, compare credit cards to find the best fees for your spending pattern.