Overseas Spending Without the High Costs: A Complete Breakdown of Foreign Currency Fees & Card Benefits

Whether you’re travelling abroad, on an overseas business trip, or shopping on international websites, all you really need is one card to complete overseas payments. However, confusing fee structures and exchange rate calculations often make foreign currency spending feel expensive and unpredictable.

Want to spend more wisely and save on overseas transaction fees? This guide breaks down how overseas card payments work, compares different fee structures and promotions, and helps you manage costs with confidence.

Two Main Types of Overseas Card Transactions

In-Person Foreign Currency or HKD Payments

These are card payments made at physical merchants overseas, such as dining at a restaurant in Tokyo or shopping in London. At checkout, you may be given a choice to settle the transaction in local currency or HKD via Dynamic Currency Conversion (DCC).

Online Cross-Border Payments

Transactions made with overseas online merchants, even if you are physically in Hong Kong, are classified as overseas spending. Examples include subscribing to international streaming platforms or shopping on US-based Amazon. These transactions usually incur foreign transaction fees.

Which Card Should You Use Overseas? 3 Key Things to Check

Understand Foreign Currency Fees and Exchange Rates

Overseas transaction fees usually consist of two components:

• Fees charged by the card network (e.g. Visa or Mastercard), typically around 1%
• Fees charged by the issuing bank, usually 0.95%–2%

You should also watch out for DCC (Dynamic Currency Conversion). If you choose to pay in HKD overseas, the exchange rate is set by the merchant and is often significantly worse than paying directly in the local currency.

Check Pre-Authorisation and Refund Policies

Hotels and car rental companies often place a pre-authorisation hold on your card to reserve a certain amount.
If a refund is required, processing time, exchange rates and whether transaction fees are refundable vary by bank and card issuer.

Ensure Security and Regional Compatibility

Make sure your card supports:

• Real-time transaction alerts
• Strong fraud protection
• Acceptance in the destination country via networks such as Visa, Mastercard or JCB

This ensures your overseas payments go through smoothly and securely.

Overseas Spending Fees & Benefits for Personal Use

JCB Overseas Transaction Fees

JCB fees vary by issuing bank. Some banks waive transaction fees for spending in Japan.
For businesses, Wonder Card (JCB) offers a clear fee structure:

• No local or international transaction fees
• 1.5% FX conversion fee on international transactions

Visa Overseas Transaction Fees

Visa cards are widely used in Hong Kong. The standard overseas transaction fee is typically 1.95%.

Mastercard Overseas Transaction Fees

Similar to Visa, Mastercard’s standard overseas transaction fee is also generally 1.95%, making it an industry benchmark.

UnionPay Overseas Transaction Fees

UnionPay cards often waive foreign transaction fees, which is a major advantage.However, some Hong Kong-issued UnionPay cards still charge around 1%–1.2%, so it’s best to confirm with the issuing bank before use.

Understanding the True Cost of Overseas Spending

Most Hong Kong credit cards charge a total overseas transaction fee of around 1.95%.
If a card offers overseas rewards or cashback above 1.95%, it can fully offset the fee—or even generate net savings.

Common Types of Overseas Spending Benefits

• Cashback: Direct bill rebates or points convertible to cash or rewards
• Air miles: Earn miles faster through foreign currency spending
• Airport lounge access: Complimentary lounge visits with selected cards
• Fee waivers: Some cards offer zero foreign transaction fees or offset fees through high cashback

Should Businesses Use Personal Credit Cards for Overseas Spending?

Many SME owners or employees initially use personal credit cards to cover company expenses—such as flights, hotels, overseas suppliers or online advertising.

While convenient, this approach creates long-term issues:

• Mixing personal and business expenses increases reconciliation workload and error risk
• Reimbursement processes are time-consuming and lack real-time budget visibility
• Personal credit limits may be insufficient for large transactions and can affect employees’ personal finances

Although personal credit cards can be used, they are far from ideal. Businesses benefit more from dedicated corporate payment solutions with backend controls, spending limits and multi-currency support.

Wonder Card for Overseas Spending: A Smarter Choice for Businesses

For companies, cost control and expense visibility matter more than personal rewards.
Wonder Card is a business card solution designed specifically for overseas corporate spending.

Business Travel Perks with Concierge Services

Wonder Card (JCB) offers business travel benefits such as:

• Complimentary airport lounge access
• Dedicated concierge services

These perks enhance business travel while delivering real overseas spending value.

Get Started in Just 7 Minutes — No Long Approval Process

Forget lengthy bank card applications. Businesses can complete online onboarding in as little as 7 minutes, instantly issuing virtual and physical cards to handle urgent foreign currency payments.

Centralised Expense Management with Real-Time Visibility

All Wonder Card transactions sync automatically with the Wonder App and Dashboard, simplifying financial workflows and enabling accurate fund allocation across teams.

Real-Time Alerts and Full Spending Control

Each card can be assigned its own spending limit, with instant transaction notifications.
Finance teams can track and analyse all overseas spending in one place—eliminating manual reimbursement processes.

Multi-Currency Support with Lower Fees Than HKD Settlement

Wonder Card supports multiple foreign currencies, offering competitive exchange rates and transparent fees.
Compared with DCC (HKD settlement) or traditional bank cards, businesses can significantly reduce overseas transaction costs and improve overall operating efficiency.

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