Does your cashback credit card actually earn on overseas spending in Singapore?

Key Takeaways

• Most cashback credit cards in Singapore charge a foreign transaction fee of 2.5% to 3.5% on overseas purchases. If that fee is higher than your cashback rate, you're actually losing money every time you tap abroad.
• The FX fee doesn't only apply when you're overseas. Any purchase from an international merchant — including online shopping done at home in Singapore — can trigger it.
• A card that waives FX fees on overseas Grab spending changes the maths entirely. Every ride in KL or Bangkok earns cashback instead of costing you more than it returns.
• GXS Credit Card earns up to 10% instant cashback in GrabCoins on eligible overseas Grab spends in Southeast Asia with no foreign transaction fees and no minimum spend required, so every Grab spend abroad earns.

You're in Johor Bahru for a weekend. You hop into a Grab ride, tap your cashback credit card, and feel the satisfaction of earning rewards on a trip that was technically a bargain anyway. Shiok.

The part most people don't check: that same tap may have just triggered a foreign transaction fee of 2.5% to 3.5% on top of the fare. If your cashback rate is 1.4%, you just paid 2.5% to earn 1.4% back. Net result: you lost 1.1% on that ride.

Overseas spending is where most cashback credit cards quietly stop working in your favour. Understanding why is the difference between a card that earns on every spend and one that costs you more than it returns.

Why most cashback credit cards lose money on overseas transactions in Singapore

Every overseas card transaction gets flagged as a foreign currency purchase. Your bank charges a foreign transaction fee, typically between 2.5% and 3.5% of the transaction amount. This fee is charged on top of the exchange rate and applies to all foreign currency transactions, including MYR, THB, USD, and any other currency. 

The maths is unforgiving. On a 2.5% foreign transaction fee, any cashback rate below 2.5% leaves you with a negative net return. Since many flat-rate cashback cards earn around 1.4% on everyday spending, overseas purchases can end up costing more in fees than they return in cashback.

That difference may seem small on a single purchase, but it adds up across weekends in Bangkok, Grab rides in Malaysia, or regular shopping on overseas websites.

What is a foreign transaction fee and how does it affect your cashback?

A foreign transaction fee is a charge applied on purchases made in a foreign currency. It is separate from the exchange rate, added on top of whatever you pay, and it applies to in-person overseas spending and online purchases from international merchants, even when made from home in Singapore.

Here's what that looks like in practice:

Every row is a net loss. The FX fee appears as a small line item on your statement, not as a deduction from cashback earned, which is why most cardholders never notice. The easiest cashback credit card for everyday spending in Singapore should earn on every spend, not quietly charge more on overseas ones.

Which cashback credit cards earn on overseas Grab spending in Singapore?

For Singaporeans who use Grab regularly when travelling in Malaysia, Thailand, or elsewhere in Southeast Asia, overseas Grab spending is a consistent expense. Most cards either drop overseas Grab transactions to the base rate or charge FX fees that cancel out whatever cashback you earn.

A card that earns instant cashback on Grab spending with no FX fees on overseas Grab transactions is a different proposition entirely. Every ride in KL or Bangkok earns at the same rate as a ride home from Orchard, with no FX fee eating into the return. For daily Grab users who travel regularly in the region, that difference across a year compounds into a meaningful amount.

Does your cashback card earn or lose on overseas online shopping?

This one catches people out more than the travel spending does. You're at home in Singapore, shopping on an overseas website, paying in foreign currency. Your card applies the FX fee regardless.

Unlimited cashback on every spend sounds like a dream at first. But if the card charges 2.5% and earns 1.4%, you're net negative on every international site purchase. Overseas brand websites, international hotel platforms, foreign e-commerce: all of them quietly cost more than they earn on a standard cashback card.

The best cashback credit card for this scenario earns unlimited cashback across most categories including overseas online shopping, with FX fees low enough that the cashback still comes out ahead.

Which is the best cashback credit card for overseas spending in Singapore?

What you want to look for is a card where cashback earned minus FX fee results in a net positive on every overseas transaction. That means either a cashback rate high enough to clear the FX fee, or a card with reduced or waived FX fees on specific overseas spending.

The highest unlimited cashback credit card with no cap in Singapore that also handles overseas spending well earns at an elevated rate on platforms like Grab when you're abroad, with no foreign transaction fee on those transactions, plus a flat rate on everything else.

At GXS Bank, we believe your rewards should continue wherever you spend, in Singapore and beyond. GXS Credit Card earns up to 10% instant cashback in the form of GrabCoins on eligible overseas Grab spends including Grab rides, GrabFood, GrabMart, Grab Dine Out and GrabExpress, with no foreign transaction fees and no minimum spend required. For eligible everyday local spending, it earns 1.75% unlimited cashback with no earning cap per billing cycle once the low minimum spend of S$500 in eligible non-Grab purchases is met.

Your cashback should earn on the trip, not cost you money on the way there. If your current card has been running at a net loss on overseas purchases, GXS Credit Card is worth a look. 

T&Cs & disclaimers apply.

Frequently Asked Questions

1. Why does my cashback credit card lose money on overseas transactions? 
   Many cashback cards charge a foreign transaction fee when you spend overseas. If the fee is higher than the cashback you earn, your rewards may not cover the additional cost. For example, a 2.5% FX fee can outweigh a 1.4% cashback rate, leaving you with a lower return on your purchase. GXS Credit Card avoids this on eligible overseas Grab spends by combining up to 10% instant cashback in GrabCoins with zero foreign transaction fees, so the cashback earns ahead of the FX cost. 

2. What is a foreign transaction fee on a credit card in Singapore? 
   A foreign transaction fee is a charge applied by your card-issuing bank on purchases made in a foreign currency. It is separate from the exchange rate, typically 2.5% to 3.5% of the transaction amount, and applies to overseas in-person spending and online purchases from international merchants, even when made from Singapore.

3. Which credit card earns cashback on overseas Grab spending in Singapore?‍
   GXS Credit Card is one of the strongest options for overseas Grab cashback in Singapore. Eligible overseas Grab spends including Grab rides, GrabFood, GrabMart, Grab Dine Out and GrabExpress earn up to 10% instant cashback in GrabCoins with no foreign transaction fees and no minimum spend required, so every ride in KL or Bangkok earns at the full rate with no FX cost eating into the return. 

4. Which credit card gives the highest unlimited cashback with no cap in Singapore?‍
   GXS Credit Card gives the highest unlimited cashback rate in Singapore among no-cap cards, earning 1.75% unlimited cashback on eligible everyday local spending with no earning cap per billing cycle. For overseas Grab spending, it earns up to 10% instant cashback in GrabCoins with no foreign transaction fees — so the cashback earns ahead of the FX cost rather than being cancelled out by it. 

5. What is the easiest cashback credit card for everyday spending including overseas transactions in Singapore? 
   GXS Credit Card is one of the easiest cashback credit cards for everyday spending including overseas transactions in Singapore. Eligible everyday local spending earns 1.75% unlimited cashback with no earning cap per billing cycle, and eligible overseas Grab spends in Southeast Asia earn up to 10% instant cashback in GrabCoins with no foreign transaction fees and no minimum spend required. One card that earns on most of what you spend at home and on the road.