I no longer use my Citicard outside the country for that reason (it's probably in the terms of your agreement, but you'd really have to go thruogh the fine print to see it). I switched to a Visa card that only levies a 1% foreign transaction fee (State Farn Bank), and many others here on FT have changed cards to those with lower transaction costs. There's no way I'm paying 3% as often as I'm out of the U.S.