Ever noticed an extra 1.95% fee on your credit card statement after an overseas trip or an online purchase from a foreign website? That's the notorious **Cross-Border Fee (CBF)**, a charge that many cardholders in Hong Kong overlook.
As more banks begin to add this fee, knowing how to avoid it is crucial for savvy consumers. Our editor has created this complete 2025 guide to explain what CBF is, which cards still waive it, and how you can save money on your next purchase.
What Exactly is the Cross-Border Fee (CBF)?
The Cross-Border Fee (CBF), also known as a foreign transaction fee, is a charge applied by credit card issuers when you make a transaction that is processed outside of Hong Kong. This applies even if you pay in Hong Kong Dollars (HKD). Most banks in Hong Kong charge a CBF of around 1% to 1.95% of the transaction amount.
When Are You Charged a Cross-Border Fee?
You can be charged a CBF in two main scenarios:
1. Online Shopping with Overseas Merchants
When you shop on international websites like Uber, Airbnb, iHerb, Netflix, or Amazon, their payment processors are based overseas. Even if they show prices and charge you in HKD, the transaction is still "cross-border," and your bank will likely add a CBF to your statement.
2. Paying in HKD While Traveling Abroad (DCC)
When you use your credit card overseas, the merchant might offer to charge you in HKD. This is called Dynamic Currency Conversion (DCC). While it seems convenient, you should almost always **decline this option**. The exchange rate used for DCC is typically very poor, and on top of that, you will still be charged the CBF by your bank because the transaction is physically happening abroad.
3 Smart Ways to Avoid Paying the CBF
▌1. Use a Credit Card with No CBF
The most direct method is to use a credit card that waives this fee. With major issuers like HSBC applying a 1% CBF from November 9, 2024, the number of fee-free cards is shrinking. Currently, the best options in Hong Kong that do not charge a CBF are the Standard Chartered Smart Card and the American Express Explorer® Credit Card.
▌2. Use a Card with High Rebates
If you don't have a no-CBF card, the next best thing is to use a card with a high cash back or rewards rate on foreign or online spending. For example, if a card offers a 4% rebate on online spending, it can more than offset the ~1.95% fee, leaving you with a net gain.
▌3. Always Pay in the Local Currency Abroad
When you are traveling, if the card machine asks if you want to pay in HKD or the local currency (e.g., JPY, EUR), **always choose the local currency**. This ensures you get your bank's more competitive exchange rate and avoids the terrible rates associated with DCC.
Hong Kong Credit Cards: Foreign Transaction Fee Comparison
Credit Card | Online Rebate | CBF Charge | Status |
---|---|---|---|
Hang Seng MMPower | 5% | 1% | From Oct 2, 2024 |
HSBC Red Card | 4% | 1% | From Nov 9, 2024 |
CNCBI inMotion | 6% | 1% | Effective Now |
AEON WAKUWAKU | 6% | 1% | From Nov 2024 |
BOC Chill Card | 5% | 0.95% | Effective Now |
AMEX Explorer Card | ~2.08% (Miles) | 0% | No Fee |
Standard Chartered Smart Card | 5% (Designated) | 0% | No Fee |
Top No-CBF Credit Card Recommendations
▌Standard Chartered Smart Card
Feature | Details |
---|---|
Foreign Transaction Fee | No Fee (whether paying in foreign currency or HKD) |
Rebate on Designated Merchants | 5% cash back at 759 Store, Circle K, SASA, Watsons, Klook, Deliveroo, Japan Home Centre, HKTVmall, and more. |
Welcome Offer | New customers can get a Marshall Emberton Speaker or HK$900 coupon via partner sites. |
Rebate Details | - Designated merchants: 5% rebate. - Basic spending: ~0.56% rebate. |
Application Link | Apply Now |
▌American Express Explorer® Credit Card
Feature | Details |
---|---|
Foreign Transaction Fee | No Fee |
Airport Lounge Access | 8 free visits to Plaza Premium Lounges annually |
Miles Earn Rate | As low as HK$3.6 per mile on airlines and designated travel websites. |
Application Link | Apply Now |
For a detailed comparison of more travel and rewards cards, check out our Complete Hong Kong Credit Card Comparison Tool!