Summer Travelers Can Save Hundreds on Foreign Transaction Fees by Choosing the Right Credit Card
Translated & summarized from Kan News by baba
Ahead of summer vacations, travelers can save hundreds of shekels by choosing credit cards with lower foreign transaction fees, which vary widely among banks and clubs. Traditional banks charge up to 3%, while some digital banks and club cards offer fees as low as 0% to 1%. Experts advise always paying in the local currency abroad to avoid extra costs.
The story in 6 lines · by baba
- Bank credit cards charge up to 3% foreign transaction fees, with Bank Leumi, Discount, and International Bank at the top.
- Digital bank One Zero offers 0% commission, applying only exchange rate margins.
- Club and non-bank cards reduce fees dramatically, often to 1% or less.
- Youth and student cards typically charge between 1% and 1.5% fees.
- Digital wallets like PassportCard offer 0% fees but only during active travel insurance coverage.
- Always pay in the local currency abroad to avoid additional currency conversion charges.
As summer vacation approaches, travelers are advised to carefully select their credit cards to avoid high foreign transaction fees, which can vary significantly and save hundreds of shekels per trip. According to the financial program "Tzeva HaKesef" on Kan News Radio Network B, traditional bank credit cards typically charge the highest fees, around 3% per foreign currency transaction. Bank Leumi, Discount Bank, and the International Bank lead with the maximum 3% fee, followed by Bank Hapoalim at 2.9% and Mizrahi Tefahot at 2.7%. An exception is the digital bank One Zero, which charges 0% commission, only applying the exchange rate margin.
In contrast, non-bank and club credit cards offer much lower fees due to competition. Max's "Reut Takni Li" and "Kaze Ani Rotze" cards charge just 1%, though card fees should be noted. Secret Flights offers 0% to 1% fees on foreign purchases. Clubs such as Hightechzone, Haver, and the Histadrut's "Together for You" club maintain a 1% fee, while youth and student cards like "Campus Card" typically charge between 1% and 1.5%. Additionally, digital foreign currency wallets like PassportCard offer 0% fees but only during the period when the user holds the company's travel insurance and is covered.
A key tip for travelers is to always pay in the local currency of the country they are visiting and never agree to be charged in shekels abroad, to avoid unfavorable currency conversion fees. This advice comes alongside other financial tips for managing expenses during holidays and economic challenges expected in 2026.
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