How to avoid international transaction fees in Singapore (2026)

Key Takeaways:

• Knowing how to avoid international transaction fees can save your business up to 3.25%¹ on every overseas payment.

• The most effective approaches are holding foreign currency balances, using a card with no foreign transaction fees, and routing recurring payments through local payment rails instead of SWIFT transfers.

• Airwallex lets you hold, convert, and spend in multiple currencies from one account, so you can pay overseas without triggering conversion fees at all.

Knowing how to avoid international transaction fees is one of the simplest ways to cut costs on overseas business payments.

Each time you pay in a foreign currency, multiple fees can apply. Your bank typically adds a foreign exchange markup, while the card network may charge an additional international processing fee. On most Singapore-issued cards, these charges can add up to as much as 3.25%¹ per transaction.

This article focuses on the practical steps you can take to reduce or avoid these fees altogether. If you want a deeper breakdown of how each fee works and how they are calculated, refer to our guide on foreign transaction fees.

How to avoid international transaction fees

There are three practical ways to reduce or eliminate international transaction fees. Here’s a quick overview, before we go into the details:

Option 1: Hold foreign currency balances

The most direct way to avoid conversion fees is to pay from a balance held in the same currency as your payment. If you hold USD and pay a US supplier in USD, no conversion happens — and no conversion fee applies.

This approach works best for businesses with recurring payments in a specific currency. If you regularly pay suppliers in the US, EU, or China, holding balances in USD, EUR, or CNY eliminates the fee on every transaction in that currency.

To do this, you need a multi-currency account that lets you hold, receive, and spend in foreign currencies without automatically converting to SGD. Airwallex Global Accounts let you hold and manage balances in multiple currencies from one place.

Option 2: Use a card with no foreign transaction fees

Some cards waive the bank admin fee on foreign currency transactions, reducing or eliminating the total charge. On a standard Singapore card, this fee alone is 2.25%¹.

When evaluating a no-fee card, check:

• Whether the full fee is waived or just the bank admin component

• Whether the card network still applies its 1%¹ charge

• Whether the exchange rate used carries a hidden spread

• Whether any monthly spend cap applies to the waiver

The table below compares what a typical Singapore business card charges versus a card with no foreign transaction fees:

The information in this table has been reviewed to be accurate as of 28 April 2026.

The Airwallex Corporate Card charges no foreign transaction fees when you pay from a matching currency wallet. If you need to convert, Airwallex applies its own FX rate with no additional admin fee on top.

Option 3: Use local payment rails instead of international bank transfers

For supplier payments, international bank transfers (also called telegraphic transfers or TTs) carry their own fee layer that’s separate from card transaction fees.

Singapore banks typically charge a flat handling fee of S$10–S$35² per outgoing transfer, with OCBC charging S$30² per business banking transaction via OCBC Velocity.

Switching to local payment rails — where your provider settles the payment in the recipient's local currency through a local bank account — removes the cross-border transfer fee entirely. This works for markets where your payment provider holds local accounts, including the US, EU, UK, Australia, and many Asian markets.

Airwallex Transfers use local payment rails in 120+ markets. 94% of our transfers go through local rails with no transfer fees and faster settlement.

How to avoid international ATM fees

Using your Singapore card at an overseas ATM triggers a separate set of charges on top of your standard foreign transaction fee. Here’s a closer look at these fees:

What you are charged at an overseas ATM

When you withdraw cash at an overseas Visa or Mastercard ATM, DBS charges a service fee of S$7¹ per withdrawal. This is in addition to:

• The foreign transaction fee applied to the converted withdrawal amount (up to 3.25%¹)

• Any fee charged by the overseas ATM operator itself (varies by ATM and country)

Exceptions apply at certain partner bank ATMs.

For example, DBS cardholders pay a reduced service fee of S$2¹ at Bank of Central Asia (BCA) ATMs in Indonesia and Bank of Philippines Island ATMs in the Philippines. Cash withdrawals are free of charge at DBS Hong Kong ATMs and Westpac Group ATMs in Australia.¹

How to reduce or avoid ATM fees overseas

Here are a few methods to help you reduce or avoid ATM fees:

Use a local payment method instead. Card payments at merchants avoid the ATM service fee entirely. If you need local currency, withdrawing larger amounts less frequently reduces the per-transaction cost of the flat service charge.

Check your bank's partner ATM network. Major Singapore banks have ATM partnerships in certain markets where the service fee is reduced or waived. Check your bank's website before you travel.

Pay digitally where possible. Contactless card payments and mobile wallets are widely accepted across most markets your business operates in. Avoiding cash altogether removes the ATM fee layer entirely.

Use a multi-currency account for overseas travel. If your business holds a multi-currency account, some providers allow overseas ATM withdrawals directly from a foreign currency wallet — removing the conversion fee on the withdrawal amount itself.

Stop paying foreign transaction fees on every international payment

Most Singapore businesses have more international payments than they realise. For example:

• Paying overseas suppliers in China, the US, or Europe

• Collecting revenue from international customers

• Running ad campaigns billed in USD on Meta or Google

• Subscribing to overseas software tools billed in USD

• Managing team expenses across multiple currencies and markets

Each of these triggers a foreign transaction fee on a standard Singapore card or bank account. The fees are small individually, but they compound quickly in the background.

Airwallex is built to eliminate that cost across all of them. Here’s what you get with Airwallex:

No foreign transaction fees on card spend

The Airwallex Corporate Card lets your team pay in multiple currencies directly from held balances in your Airwallex wallet.

When you pay USD from a USD balance, no conversion happens and no fee applies. If you need to convert, Airwallex auto-converts at market-leading FX rates that save you up to 80% on FX fees.

• Issue company and employee cards instantly — free to create, usable immediately

• Set per-transaction spend limits and custom approval workflows

• Get a real-time view of all card activity from a single dashboard

• Cards work anywhere Visa is accepted, online and in-store

Receive and hold money in 20+ currencies

The Airwallex Global Account gives your business local account details in 20+ countries — including the US, UK, EU, and Australia — so overseas customers can pay you like a local. Funds land in the currency they were sent in, with no forced conversion. You hold them, spend them, or convert them when the rate suits you.

There are no account opening fees, no monthly maintenance charges, and no minimum transaction requirements.

Pay suppliers faster and cheaper

Traditional SWIFT transfers take days and carry flat fees of S$10–S$35² per transaction at most Singapore banks. Airwallex Transfers route payments through local payment rails in 120+ countries, which means no SWIFT fees and 93% of transactions arrive on the same working day.

You can also send batch transfers to up to 1,000 recipients in one go.

One platform, not three

The practical advantage of Airwallex is consolidation.

Instead of managing a travel card for overseas spend, a separate account for receiving foreign revenue, and a bank relationship for supplier transfers — all with their own fees — you handle everything from one place. That means fewer reconciliation headaches, clearer visibility over international costs, and less time spent managing multiple providers.

Frequently asked questions (FAQs)

Can I avoid international transaction fees entirely?

Yes, if you pay from a balance held in the same currency as your transaction, no conversion happens and no fee applies. For example, paying a US supplier in USD from a USD wallet incurs no foreign transaction fee. If you cannot hold foreign currency balances, using a card that waives the bank admin fee is the next best option.

Does paying in SGD at an overseas merchant help me avoid the fee?

No. When an overseas merchant charges you in SGD — known as dynamic currency conversion — your bank may still apply a fee for processing a transaction outside Singapore. On top of that, the merchant sets the exchange rate, which is almost always less favourable than what your bank or card network would apply. You are generally better off paying in the local currency.

Do international transaction fees apply to online purchases?

Yes, if you buy from an overseas merchant online and the payment is processed in a foreign currency, your card will apply the standard foreign transaction fee — up to 3.25%¹ on most Singapore cards. This applies regardless of whether you are physically in Singapore or abroad at the time of purchase. Common examples include overseas software subscriptions, global ad platforms, and international supplier invoices.

Do all corporate cards charge foreign transaction fees?

No. Standard Singapore bank-issued corporate cards typically charge up to 3.25%¹ on foreign currency transactions. Some cards — including the Airwallex Corporate Card — charge no foreign transaction fee when you pay from a matching currency balance held in your account.

What is the difference between a foreign transaction fee on a card and a bank transfer fee?

Card foreign transaction fees are percentage-based — typically up to 3.25%¹ of the transaction amount — and are applied automatically on every overseas card payment. Bank transfer fees (also called telegraphic transfer fees) are flat charges applied per outgoing transfer, typically S$10–S$35² at Singapore banks. For large one-off transfers, the flat fee may be lower in absolute terms than a percentage-based card fee. For frequent smaller transactions, card fees tend to add up faster.

How do I know if my business is paying too much in international transaction fees?

If you are on a standard Singapore card rate of 3.25%¹, you are paying more than you need to — that fee is a default, but it’s not the lowest available fee. Airwallex eliminates foreign transaction fees entirely when you pay from a matching currency balance, making it a straightforward switch for businesses with recurring overseas spend.

Sources:

1. https://www.dbs.com.sg/personal/support/card-charges-and-fees-overseas-transaction-fees.html

2.  https://www.ocbc.com/business-banking/outward-telegraphic-transfer

3.  https://www.hsbc.com.sg/international/foreign-transaction-fee-using-your-card-abroad/

This publication does not constitute legal, tax, or professional advice from Airwallex, nor does it substitute seeking such advice, and makes no express or implied representations / warranties / guarantees regarding content accuracy, completeness, or currency. If you would like to request an update, feel free to contact us at [[email protected]]. Airwallex (Singapore) Pte. Ltd. (201626561Z) is licensed as a Major Payment Institution and regulated by the Monetary Authority of Singapore.