For the frequent flyer or budget-conscious traveler, understanding the fee structure of a travel credit card is paramount. The question of whether the JetBlue credit card charges foreign transaction fees is a common one, and the answer is not a simple yes or no, as it depends entirely on the specific card you hold in your wallet.
Identifying the Correct Card in Your Wallet
JetBlue offers several co-branded credit cards through different banking partners, and the fee structure varies significantly between them. The primary distinction exists between the store card, issued by Comenity Bank, and the credit cards issued by Barclays. To determine which card you have, check the name on the account; if it says "Comenity Bank," you are dealing with the store card, whereas an account with "Barclays" indicates a different product entirely.
The Comenity Bank Store Card
The JetBlue store card, managed by Comenity Bank, is where travelers will encounter the foreign transaction fee. This card charges a standard fee of 3% on every purchase made outside the United States or on transactions processed in a foreign currency. This fee applies to purchases, balance transfers, and cash advances, making it a costly option for spontaneous international travel or even simple border-side transactions.
The Barclays Travel Cards
Barclays issues the more robust JetBlue credit cards, such as the JetBlue Plus Card and the JetBlue Reserve Card, which are designed for more serious travelers. A significant advantage of these products is that they waive foreign transaction fees, allowing cardholders to spend internationally without the burden of the 3% penalty. This feature is a major competitive edge for those who frequently traverse borders or book flights outside the US.
Understanding the Foreign Transaction Fee Mechanism
When a transaction is processed internationally, the payment network—such as Visa or Mastercard—applies a fee to cover currency conversion. This fee is usually around 1%, but the issuing bank adds its own surcharge on top of that base cost. The result is the 3% fee that cardholders see on their statements. Cards without this waiver simply pass this cost directly to the consumer, whereas cards like the Barclays variants absorb it as a benefit.
Always check the account name to identify if your card is issued by Comenity or Barclays.
Remember that the 3% fee applies to the transaction amount in the foreign currency at the time of the purchase.
Dynamic Currency Conversion (DCC) is a practice where the merchant offers to charge you in US dollars; it is usually advisable to decline this to avoid additional hidden fees.
Contactless payments and chip transactions are treated the same as online purchases regarding foreign fees.
Maximizing the Value of Your Card
Choosing the right card for your travel habits is the most effective way to avoid unnecessary fees. If your travels take you across the Atlantic or to Mexico frequently, the Barclays cards provide substantial savings over the long term. Conversely, if you primarily use your card for domestic purchases and occasional trips to Canada, the Comenity store card might suffice, provided you factor the potential 3% charge into your budget.
The Fine Print and Cash Advances
It is crucial to read the specific terms of your cardmember agreement, as foreign transaction policies can change. Furthermore, the rules regarding cash advances are strict; even Barclays cards typically charge a cash advance fee and apply interest immediately without a grace period. Using your credit card to withdraw cash internationally almost always incurs the highest costs, regardless of the card issuer.
