What 2026's Changes Mean for Paying by Card Abroad

Capital One has moved its debit cards from Mastercard to the Discover network and told investors on July 21, 2026, that the conversion was completed earlier in the year. Bulgaria replaced the lev with the euro on January 1, 2026, and since March 19, 2026, UK banks have been allowed to set their own contactless limits. For US travelers, that means a Capital One debit card may not work everywhere it used to, and in Bulgaria the euro is now the currency to pay in. Most of what a trip costs still comes from your own bank's foreign fees and from the "pay in dollars?" prompt at the till, while your federal protections for lost cards and wrong charges still come from Regulation E (debit) and Regulation Z (credit).

Key takeaways

Capital One says its debit cards now run on the Discover network, and acceptance outside the US "may be different than before." Abroad, look for the Discover or Diners Club International marks.
On standard checking accounts, debit cards at Chase, Bank of America and Wells Fargo each carry a 3% fee on foreign-currency purchases and a $5 fee per withdrawal at another bank's ATM outside the US (fee schedules effective June 14, August 7 and July 28, 2026, respectively). Some premium accounts and tiers waive them. The ATM owner's own charge comes on top.
Saying yes to "pay in dollars?" (dynamic currency conversion) means the merchant's markup replaces your bank's exchange rate. With an illustrative 7% markup, a €100 bill costs $120.11, against $115.62 in euros on a card with a 3% fee.
EU negotiators agreed on November 27, 2025, that currency conversion charges and fixed ATM fees would have to be shown before you pay, but as of the European Parliament's September 20, 2026 update the law still awaited formal adoption.
If a lost or stolen card is misused, a credit card caps your liability at $50. On a debit card the cap is $50 only if you report within 2 business days of learning of the loss, up to $500 after that, and potentially more if you miss the 60-day statement deadline. Banks must extend these deadlines for extenuating circumstances such as extended travel.

What it means for you

Capital One debit cardholders. Your card now runs on Discover, and Mastercard's network benefits end once you activate the new card. Pack a second card from another network. See "What changed, with dates."
Big-bank debit card users. Expect a 3% fee on foreign-currency purchases and $5 per foreign ATM withdrawal at Chase, Bank of America and Wells Fargo, plus the ATM owner's fee. When each withdrawal carries a flat fee, fewer, larger withdrawals cost less. See "How ATM fees stack up abroad."
Anyone asked "dollars or local currency?" Paying in local currency is usually cheaper, but the answer depends on the markup shown and on whether your card charges a fee on dollar transactions abroad. See "Dollars or local currency?"
Going to Bulgaria, or holding leftover lev. Pay in euros. Banks and post offices in Bulgaria are obliged to exchange lev only until December 31, 2026, though the Bulgarian National Bank exchanges them free with no deadline. See the FAQ.
Going to the UK. The £100 tap limit is no longer set by regulation. The change applies to UK banks and payment firms, which the regulator expects mostly to keep their limits, and it says nothing about cards issued abroad. Have your PIN ready for larger purchases.
Choosing which card to use. For big purchases and deposits, a credit card gives you stronger dispute rights than a debit card. See "Debit vs credit protections."

What changed, with dates

Each item below was checked against the regulator's, central bank's or card issuer's own page as of October 3, 2026, except Capital One's completion timing, which comes from its earnings call as transcribed by a third party. Status tells you whether it already affects your trip.

Date	Change	Who it affects	Status
January 1, 2026	Bulgaria joined the euro area at BGN 1.95583 per euro. The lev stopped being legal tender on February 1, 2026.	Anyone paying or withdrawing cash in Bulgaria	In effect
By July 2026 (as reported)	Capital One switched its debit and ATM cards from Mastercard to Discover, with a new card number, security code and expiration date. Its own debit card page gives no dates. On its July 21, 2026 earnings call, as transcribed by Investing.com, the company said it completed the conversion "earlier this year" and is testing Discover for some credit cards.	Capital One debit cardholders; credit cards only in tests	Debit: reported complete. Credit: testing
March 19, 2026	The UK's Financial Conduct Authority removed the regulatory contactless limits and replaced them with a risk-based exemption. Its December 19, 2025 announcement says most banks are likely to keep their existing limits for the foreseeable future.	UK-regulated banks and payment firms	In force
May 2026	Bank of America replaced Preferred Rewards with BofA Rewards, launched May 27, 2026, with tiers renamed. In the fee schedule effective August 7, 2026, only the Premier tier ($1 million+ average balance in qualifying accounts) has the 3% international transaction fee and the $5 foreign ATM fee waived.	Bank of America debit cardholders	In effect
November 27, 2025	EU negotiators agreed on a new Payment Services Regulation. It would require charges, including currency conversion charges and fixed ATM withdrawal fees, to be shown before you pay, whoever runs the ATM. It would also let shops hand out €100 to €150 in cash without a purchase. The Parliament's announcement doesn't say how it would apply to cards issued outside the EU.	Payments and ATMs in the EU	Not yet law. ECON committee approved it May 5, 2026; formal adoption pending as of the Parliament's September 20, 2026 update

Travel notices: no longer needed at most big issuers

This isn't a 2026 change, but it's often missed. Chase says it no longer accepts travel notices, Bank of America no longer requests them, and American Express, Capital One and Wells Fargo say you don't need to tell them. What replaced the notice is a setting you have to check yourself. Wells Fargo's debit cards have an international-usage control: if it's off, in-person and ATM transactions outside the 50 states and DC won't go through, and that includes digital wallet payments.

Dollars or local currency?

When a card terminal or ATM abroad offers to charge you in dollars, that's dynamic currency conversion (DCC). The merchant's or ATM operator's provider sets the exchange rate and adds its own markup. If you pay in local currency, your card network converts the amount and your bank adds its foreign transaction fee, if it charges one.

What the rules require at the till

Visa's rules (April 18, 2026 edition) say any merchant or ATM offering DCC must tell you it's optional and must not pre-select it. You have to expressly agree on the customer-facing screen. The receipt must show the exchange rate and the markup or fee. If DCC was applied without your express agreement, or you were refused the chance to pay in local currency, Visa lets your bank dispute the whole transaction within 120 days of processing.

If the merchant can't show you agreed, Visa's rules let it re-bill the purchase in local currency, without the DCC fees. So expect a corrected charge rather than a refund of the bill. Mastercard and Discover have their own rules, which aren't covered here.

In the EU, Regulation (EU) 2019/518 has required, since April 19, 2020, that whoever offers DCC at an ATM or point of sale show the total conversion charge before you pay. It must be shown as a percentage markup over the European Central Bank's latest euro reference rate, along with the amount in both currencies and the option to pay in local currency.

The rule binds the business offering the conversion, not your US bank, and it doesn't spell out how fully it covers cards issued outside the EU. Treat the on-screen markup as information you should see, and if it's missing, choose local currency. The UK copy of the same rule was still in force in early October 2026. A future repeal has been legislated but hasn't taken effect.

Illustrative example: a €100 restaurant bill

The example assumes your card network converts at the ECB reference rate of $1.1225 per euro (October 2, 2026). Real network rates differ slightly. The 7% DCC markup is illustrative.

Pay in local currency:  Cost = A × R × (1 + f)
Pay in dollars (DCC):   Cost = A × R × (1 + m) × (1 + d)

A = bill in local currency     R = reference rate (dollars per unit)
f = your card's foreign transaction fee
m = DCC markup shown on the screen
d = fee your card charges on dollar transactions abroad

How you pay	Calculation	Cost
Euros, card with no foreign fee	100 × 1.1225	$112.25
Euros, card with a 3% foreign fee	112.25 × 1.03	$115.62
Dollars (DCC, 7%), card with no fee on dollar transactions	112.25 × 1.07	$120.11
Dollars (DCC, 7%), card that also charges 3% on dollar transactions abroad	120.11 × 1.03	$123.71

On a card that charges 3% only on foreign-currency transactions, accepting DCC here costs $4.49 more than paying in euros. If the same card also charges 3% on dollar transactions abroad, DCC costs $123.71 against $115.62 in euros, or $8.09 more. That last case is real: Regulation Z's official interpretation counts a credit card fee charged on purchases made in dollars outside the US as a foreign transaction fee, so choosing dollars doesn't guarantee you avoid it.

Debit card terms vary. Bank of America's schedule, for example, lists a 3% fee on foreign-currency transactions and $0 on international transactions in dollars.

The formula also shows when DCC can come out ahead. If your card doesn't charge on dollar transactions (d = 0), DCC is cheaper only when the markup shown is below your card's foreign fee: a 2% markup would cost $114.50, under the $115.62 above. If your card charges the same fee on both (d = f), DCC always costs more. The comparison is a close approximation, since the EU markup is measured against the ECB rate and your network converts at its own rate.

Outside the EU and UK, the screen may not show a markup at all. Visa's public rules list the markup among the required receipt details and leave what the screen must show to a separate DCC Guide. If you can't see the markup before you pay, choose local currency.

How ATM fees stack up abroad

A cash withdrawal abroad can carry up to four separate charges: your bank's flat fee for using another bank's ATM, your bank's percentage fee for the currency conversion, the ATM owner's fee and, if you accept it, DCC at the ATM. Visa's DCC rules apply to ATM operators too. The first two are in your bank's fee schedule:

Chase (effective June 14, 2026): $5 per withdrawal at a non-Chase ATM outside the US and US territories, plus 3% of the withdrawal after conversion to dollars. Chase notes that the ATM owner's or network's surcharge still applies. Some Chase accounts list these fees as waived.
Bank of America (effective August 7, 2026): $5 per withdrawal at a non-Bank of America ATM abroad, plus the 3% international transaction fee, which also applies to foreign-currency ATM withdrawals. Its non-Bank of America ATM fees don't apply at some ATMs outside the US, and the bank asks customers to call before traveling to find out which. That exception doesn't mention the 3% fee.
Wells Fargo Everyday Checking (effective July 28, 2026): $5 per cash withdrawal outside the US and a 3% international purchase transaction fee on debit card purchases.

Fees = flat fee + p × (W × R) + (S × R)

W = cash withdrawn (local currency)   R = exchange rate
p = bank's percentage fee             S = ATM owner's fee (local currency)

Illustrative example. A Chase or Bank of America debit card at an independent ATM in the euro area that charges a €4 owner's fee, at $1.1225 per euro:

Withdrawal	Owner's fee	3% fee	Bank's flat fee	Total fees	Share of cash
€200 ($224.50)	$4.49	$6.74	$5.00	$16.23	7.2%
€400 ($449.00)	$4.49	$13.47	$5.00	$22.96	5.1%

Taking €400 out once instead of €200 twice saves $9.49: one €4 owner's fee ($4.49) and one $5 bank fee, since each withdrawal carries both. (Adding the rounded rows gives $9.50.) The 3% part is $13.47 on €400 either way. If your card has no flat fee and the ATM charges no owner's fee, withdrawing more at once saves nothing.

If the owner's fee is added to the converted amount, the 3% applies to it as well, about 13 cents more here. If the ATM then offers to convert the withdrawal into dollars, the DCC markup is charged on top of all of this.

Debit vs credit protections

The federal rules for problems with your card are the same abroad as at home, but debit and credit cards fall under different rules. Debit cards on personal accounts are covered by Regulation E and credit cards by Regulation Z. The rows below follow the current text on the CFPB's regulation pages, checked October 3, 2026.

Situation	Debit card (Regulation E)	Credit card (Regulation Z)
Card lost or stolen and misused	Up to $50 if you tell the bank within 2 business days of learning the card was lost or stolen; up to $500 after that. If the card wasn't lost and only its number was misused, those two tiers don't apply. Separately, if you don't report unauthorized transfers within 60 days after the bank sends the statement showing them, you can be liable for transfers made after that 60-day window and before you report, if the bank shows reporting would have stopped them. Banks must extend these deadlines to a reasonable period for extenuating circumstances, and the official interpretation names extended travel. State law or your account agreement may limit liability further.	At most $50, or the amount charged before you notify the issuer, if less. Notice can be given by phone, in person or in writing.
Deadline to report an error	Notice that reaches the bank within 60 days after it sends the statement that first shows the error. A phone call counts, but the bank can ask for written confirmation within 10 business days.	Written notice that reaches the issuer at the billing-error address it discloses within 60 days after it sent the first statement showing the error. Electronic notice counts only if the issuer says it accepts it.
How long the bank can take	10 business days, or up to 45 days if it provisionally credits your account. Up to 90 days for a transfer not initiated in a US state or a point-of-sale debit transaction, which covers most purchases abroad.	Acknowledgment within 30 days; resolution within 2 billing cycles, no later than 90 days
Your money during the dispute	Out of your account at first. If the bank takes longer than 10 business days, it must provisionally credit you within 10 business days of your notice. It can hold back up to $50 on an unauthorized-transfer claim, and it can skip the credit if it asked for written confirmation and didn't get it within 10 business days.	You don't have to pay the disputed amount, and the issuer can't try to collect it, until the dispute is resolved
Item or service never delivered	Not on Regulation E's list of errors. Any refund depends on your bank's and the card network's dispute process.	A billing error if not accepted or not delivered as agreed
ATM gave you the wrong amount of cash	Covered as an error	Treated as a cash advance; ask the issuer how it handles disputes

So for hotel deposits, car rentals and prepaid tours, a credit card leaves your cash untouched while a dispute runs. A debit card is still the usual way to get cash from an ATM. This section is general education, not legal or financial advice. Your account agreement and your bank's dispute process govern your case.

Frequently asked questions

Do foreign transaction fees apply when I shop on a foreign website from home?

They can. Regulation Z's interpretation counts fees charged on credit card purchases from a foreign merchant, such as through its website, as foreign transaction fees, whether you pay in dollars or another currency. Bank of America's debit card schedule likewise applies its 3% fee to internet purchases made in the US with a merchant that processes the payment in a foreign currency.

What can I do if a merchant converted my bill into dollars without asking?

Ask your card issuer to dispute it promptly. On a Visa card, the issuer can dispute the charge within 120 days of processing when DCC was applied without your express agreement or you weren't allowed to pay in the local currency. The likely result is the charge re-billed in local currency without the DCC fees. Keep the receipt, since Visa requires DCC receipts to say that a choice of currency was offered and accepted.

What happens to Bulgarian lev left over from an earlier trip?

According to the ECB, commercial banks and post offices in Bulgaria exchanged lev free of charge until June 30, 2026, may charge a fee from July 1, and are no longer obliged to exchange lev after December 31, 2026. The Bulgarian National Bank will exchange lev banknotes and coins with no time limit and free of charge, at its Sofia head office and at offices of Cash Service Company AD in Sofia, Plovdiv, Burgas, Varna and Pleven.

Can I already get cash in EU shops without buying anything?

Not under EU law yet. The agreed Payment Services Regulation would let retail stores provide cash withdrawals of €100 to €150 without a purchase, but it still needs formal adoption by Parliament and Council and won't apply until after that. Until then, ATMs and banks remain the reliable sources of cash.

Does a Capital One debit card on Discover keep the old Mastercard perks?

No. Capital One says network benefits provided by Mastercard are no longer available once you activate the new Discover card. Your account number and PIN stay the same, and the old card stops working once the new one is activated.

Before you leave: a checklist

Find your card's foreign transaction fee: on a credit card, the "foreign transaction" line in the pricing table; on a debit card, your bank's fee schedule. Also check whether it charges on dollar transactions abroad.
Check which network each card runs on and pack at least one card from a different network. This matters most for a Capital One debit card now on Discover.
Turn on any international-usage or card-control setting in your bank's app, update your phone number and email, and switch on transaction alerts.
Make sure you know a four-digit PIN for each card. Bank of America and Wells Fargo both note that some ATMs abroad accept only four digits.
Plan fewer, larger ATM withdrawals, and ask your bank whether it has partner ATMs at your destination.
At every terminal or ATM, choose the local currency unless the markup shown is lower than your card's foreign fee and your card charges nothing on dollar transactions.
Save receipts and check your statements as they arrive. If a debit card is lost or stolen, tell the bank within 2 business days of learning of it. Report any wrong or unauthorized charge within 60 days of the statement that shows it, and for a credit card, put billing errors in writing.