Yes, buying something in euros online from the US works the same as any other card purchase: you enter your card details, your network converts euros to dollars at its daily rate, and your bank posts the charge. What changes is the total. Between foreign transaction fees, exchange rate markups, and a duty-free import threshold that has been suspended, a €100 item can land noticeably above what a plain currency conversion suggests.
How the Payment Converts
When you check out on a European site with a Visa or Mastercard, the merchant’s bank requests euros. Your card network converts that amount to dollars at its own daily wholesale rate, then your issuer posts the dollar charge. It happens in seconds and takes nothing extra from you.
Digital wallets work differently. If you pay a European merchant through PayPal from a dollar balance, PayPal converts internally before sending euros to the seller. PayPal’s consumer conversion spread is currently 4% above the mid-market rate, which is substantially higher than what most card networks charge.1PayPal Consumer. PayPal Consumer Fees You can usually change PayPal’s settings so your underlying card handles the conversion instead, which is normally cheaper.
Multi-currency platforms take a third approach. Wise, for example, lets you hold a euro balance and spend directly from it, skipping the conversion at the point of sale. Converting dollars to euros on Wise uses the mid-market rate with a transparent fee starting at 0.33%, depending on the currency pair.2Wise. Wise Fees and Pricing: Only Pay for What You Use If you buy from European retailers regularly, loading euros when the rate looks good and spending from that balance is one of the cheapest ways to do it.
Foreign Transaction Fees and Rate Markups
Most credit cards charge a foreign transaction fee of 1% to 3% on any purchase in a non-dollar currency. It shows up as a separate line item or folded into the converted dollar amount. On a €500 order, a 3% fee adds roughly $15 to $17 depending on that day’s rate.
The exchange rate itself is not the mid-market rate you see on Google. Card networks apply a small markup to the wholesale rate, typically under 1%. That spread is how the network earns on the conversion, separate from any bank fee. So even a card advertising “no foreign transaction fee” converts at a slightly less favorable rate than the theoretical mid-market price.
Cards that waive the foreign transaction fee entirely are common among travel-oriented and premium credit cards. If you shop from European sites more than occasionally, switching to one is the single easiest way to cut costs.
Decline Dynamic Currency Conversion at Checkout
Some European sites offer to show you the price in dollars at checkout. This is dynamic currency conversion, and it almost always costs more than letting your bank handle the exchange. The merchant or its processor sets the rate, and the markup routinely runs 3% to 8% above wholesale. Your card’s foreign transaction fee may still apply on top, so accepting the dollar price can mean paying twice for the same conversion.
DCC disclosure is largely governed by card network rules rather than a single U.S. consumer protection statute.3Mastercard. Dynamic Currency Conversion Compliance Guide Mastercard and Visa both require merchants to offer you the choice and show the rate, but the markup itself is uncapped. When the checkout page offers to convert to dollars, decline it and pay in euros.
Customs Duties Now Apply at Any Value
This is where the cost picture has changed most. Until mid-2025, packages worth $800 or less entered the U.S. duty-free under the de minimis exemption in 19 U.S.C. § 1321.4Office of the Law Revision Counsel. 19 US Code 1321 – Administrative Exemptions That exemption has been suspended. Executive Order 14324, as revised in February 2026, eliminates the duty-free threshold for all countries regardless of the shipment’s value, origin, or how it enters.5The White House. Continuing the Suspension of Duty-Free De Minimis Treatment for All Countries A €50 pair of shoes from Germany now faces duties and fees just like a €2,000 handbag.
For packages shipped by private carriers like UPS, FedEx, or DHL, the carrier typically acts as your customs broker and files entry paperwork on your behalf. That service is not free. UPS charges an entry preparation fee per shipment plus a disbursement fee of 3.5% (with a $14 minimum) on duties and taxes it advances for you.6UPS. Customs Brokerage Rates Other carriers have similar structures. These brokerage charges arrive after delivery and catch many first-time international shoppers off guard.
The actual duty rate depends on the product and the current tariff schedule. As of early 2026, most EU goods entering the U.S. face a baseline tariff, with categories like steel, aluminum, and automobiles subject to higher rates. Plan for at least 10% to 20% above the listed euro price for duties and carrier fees on ordinary consumer goods, and check the specific tariff classification before a large order.
VAT Is Already in the Price
EU law requires that consumer prices include Value Added Tax. Unlike American sales tax, VAT is baked into the number on the product page. Member states set their own standard rates, currently ranging from 17% in Luxembourg to 27% in Hungary. Germany charges 19%, France 20%, Spain 21%, and Denmark 25%.7European Parliament. Highs and Lows: VAT Rate-Setting in the European Union
Some retailers refund VAT on orders shipped outside the EU, since the tax is meant to apply to consumption within Europe. Not all merchants do this, and some process the refund manually after you provide proof of export. Check the shipping policy before assuming you’ll pay the VAT-inclusive price. If the site removes VAT at checkout for a U.S. address, the sticker price drops by 15% to 27% depending on the country, which can partially or fully offset the new import duties.
Items You Cannot Import
Not everything sold by a European retailer can legally enter the United States. CBP maintains a list of prohibited and restricted items that applies regardless of purchase value or shipping method.8U.S. Customs and Border Protection. Prohibited and Restricted Items The categories that trip up online shoppers most often:
- Fresh, dried, and canned meat from most foreign countries is not admissible, and soup mixes or bouillon containing meat are also restricted.
- Importing prescription drugs from outside the U.S. for personal use is generally illegal because the FDA cannot verify their safety, and this catches European pharmacy items that are sold over the counter abroad.
- Absinthe must meet specific FDA and TTB standards, including being effectively thujone-free and not using “absinthe” as the brand name.
- Counterfeit goods will be seized at the border, and you will not get a refund from the seller.
A seized package means you lose both the item and the money. European retailers won’t always know or tell you whether their product clears U.S. customs, so the check falls on you before ordering.
Checkout Authentication Can Trip Up a Valid Card
European payment systems have stricter authentication than American ones. Under the EU’s Strong Customer Authentication rules, most online purchases require two-factor verification. After you enter your card details, the merchant’s site will typically redirect to a 3D Secure screen managed by your issuer, where you enter a one-time passcode sent by text or push notification.9European Banking Authority. Response to Consultation on RTS Specifying the Requirements on Strong Customer Authentication and Common and Secure Communication Under PSD2 Some issuers use biometric verification through their mobile app instead.
If your card isn’t enrolled in 3D Secure, the transaction may be declined outright. Most major U.S. issuers enroll cards automatically, but if a purchase won’t go through, call your issuer to confirm. Make sure your billing address matches exactly what your bank has on file, too. European merchants run address verification checks, and minor discrepancies like an abbreviated street name can trigger a decline.
Refunds Convert at Whatever Rate Applies That Day
Returning a euro purchase introduces a wrinkle most domestic shoppers never think about. When the merchant refunds your euros, your issuer converts that refund back to dollars at the rate on the day the refund processes, not the rate from your original purchase. If the euro has weakened against the dollar since you bought the item, you get back fewer dollars than you paid. If the euro has strengthened, you might come out slightly ahead.
The foreign transaction fee your issuer charged on the original purchase is unlikely to be refunded. Issuers treat that fee as a charge for processing the international transaction, not as part of the purchase price.10American Express. What You Should Know About Foreign Transaction Fees Some issuers may also charge a second foreign transaction fee on the refund itself, since it’s another cross-currency conversion. On a large purchase you end up returning, the combination of exchange rate movement and non-refundable fees can cost you 3% to 5% even though you sent the item back.
State Use Tax
Most states with a sales tax also impose a use tax at the same rate on purchases where sales tax wasn’t collected, including international orders. Buy a €200 jacket from a French retailer with no sales tax on the transaction, and your state expects you to report and pay use tax on it. Rates generally fall between 4% and 7.25% at the state level, with some localities adding more. Many states include a use tax line on the annual income tax return. Compliance is low, but the obligation exists and can matter on expensive items if your state audits.