Credit cards with no foreign transaction fees are fairly easy to find. However, not all work equally well for everyone. We’ve reviewed all the leading ones so that you can select one with ease.
What's common among all no foreign transaction fee credit cards is that they charge no additional fees when you use them to make purchases outside of the U.S. Some charge an annual fee, while others do not. The best ones also offer various travel-specific benefits that make them even better for international use.
Foreign transaction fees require your particular attention if you plan to use your credit card outside of the country. Depending on the card you get, this is typically 3% of each international transaction. As a result, when traveling overseas, it’s best that you use a card with no foreign transaction fee.
Some of the best no foreign transaction fee credit cards come with sizable spending- and time-based introductory bonus offers. You might also be able to earn rewards/cash back.
We help you find a suitable no foreign transaction fee card through our selection of the best credit cards on the market as well as various tips.
MoneyGeek’s Take: Top No Foreign Transaction Fee Credit Cards in 2022
The best international credit card without foreign transaction fees depends on which features, benefits, and rewards are most important to you. We have arrived at the best of the lot after accounting for factors such as the credit score you may need to have, annual fees, interest rates, rewards and added perks. Go through more recommendations lower down the page.
Summary of Top Cards
Best No Foreign Transaction Fee Credit Cards for July 2022
MoneyGeek experts have compared the leading no foreign transaction fees credit cards in the U.S. across parameters such as annual fees, interest rates, rewards and added benefits. If a seemingly great card comes with a possible drawback, we’re quick to highlight it.
Best Travel Reward Cards with No Foreign Transaction Fees
The best travel rewards cards with no foreign transaction fees are ones that come with multiple travel-specific perks, higher reward earn rates on travel-based spending and generous introductory bonus offers.
FEATURED
Capital One Venture
A great rewards card that lets you earn unlimited miles
Good–ExcellentCredit Needed
2 Miles per $1Rewards Rate
17.24%–24.49%APR
We love the Capital One Venture Card because of its generous early spend bonus offer and the flexibility it provides in redeeming earned miles. New cardholders stand to earn 60,000 bonus miles if they spend $3,000 on purchases in the first three months.
All purchases made using this card earn 2x miles, and there is no cap on the number of miles you may earn. Adding an authorized user gives you the means to earn miles sooner, and you don’t have to pay an added fee. The $95 annual fee applies only to the primary card.
You may transfer the miles you earn to over 15 travel loyalty programs such as Air France Flying Blue, Air Canada Aeroplan and British Airways Avios. You get to redeem your miles in other ways as well.
Using this card outside of the U.S. works well as it comes with no foreign transaction fees. Travelers may also benefit through Global Entry/TSA PreCheck credit, travel accident insurance, auto rental collision damage waiver and 24/7 travel assistance services.
Extended warranty safeguards your purchases. $0 fraud liability provides protection against fraudulent transactions.
Pros
No annual fees
Earn 1.25 miles for every dollar
Earn unlimited miles that remain valid for the life of your account
Redeem miles in different ways
Intro 0% APR offer
No foreign transaction fees
Access to premier events
$0 fraud liability
Virtual card numbers
Use for balance transfers
Set up an authorized user
Cons
Redeeming points as statement credit requires that you make redemptions within 90 days from the date of your travel purchase
Not all benefits available for authorized users
Pay no interest on purchases for the first 12 months because of the intro 0% APR offer.
Earn a 20,000 miles bonus if you spend $500 on purchases within three months from account opening.
Redeeming your miles for a statement credit toward travel and other purchases is simple.
You may redeem your miles through more than 10 travel loyalty programs, such as Flying Blue, Club Premier, Asia Miles, Aeroplan, MilleMiglia, Emirates Skywards and Etihad Guest.
Use your miles when you check out using PayPal or when you shop at Amazon.
Pay no annual fees.
Pay no fees when making purchases in foreign countries.
APR for purchases applies on balance transfers.
Get extra protection when traveling through auto rental collision damage waiver and travel accident insurance.
Get additional warranty protection on eligible purchases at no extra cost.
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
A good travel rewards card for people who are casual guests at Hilton hotels and resorts
Good–ExcellentCredit Needed
3–7 Points per $1*Rewards Rate
15.74%–24.74%APR
We love the no-annual-fee American Express Hilton Honors Card because it lets you earn reward points faster when you spend across Hilton properties. It also comes with a sizeable spending-based welcome offer.
Eligible spending at hotels and resorts in the Hilton portfolio comes with 7x points. You earn 5x points on dining at U.S. restaurants, including takeout and delivery, as well as on groceries at U.S. supermarkets and on gas at U.S. gas stations. All other purchases come with 3x points.
This card is ideal for international use, as it charges no overseas transaction fees.
All cardholders get complimentary Hilton Honors Silver Status. This card offers car rental loss and damage insurance and access to Global Assist Hotline.
Pros
No foreign transaction fee
No annual fee
Hilton Honors Silver Status
Welcome bonus
Hilton Honors status upgrade
High points reward rate
Car rental loss and damage insurance
Global Assist Hotline
Fraud protection
Additional cards
Cons
High APR
High credit score requirement
Lower reward rate compared to other Hilton Honors cards
No fee on international transactions
$0 annual fee
Complimentary Hilton Honors Silver Status
Upgrade to Hilton Honors Gold Status for spending $20,000 in a calendar year
Earn 80,000 points for spending $1,000 within three months
Earn 50,000 points for spending $5,000 within six months
Earn 7 points per dollar spent at Hilton hotels and resorts
Earn 5 points per dollar spent at U.S. gas stations, grocery stores and restaurants
Earn 3 points per dollar spent on other eligible purchases
24/7 assistance in case of an emergency
Car rental loss and damage insurance
No liability for fraudulent transactions
Additional cards available
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
We love the American Express Delta SkyMiles Blue Card for more than its no-annual-fee feature. This card lets you earn 2x miles on dining and Delta purchases. All other purchases come with 1x miles.
An intro offer gives you the ability to earn 10,000 bonus miles. All you need to do is spend at least $500 on purchases within the first three months.
This card comes with no international transaction fees, which makes it perfect for use when traveling overseas. Other travel benefits include getting 20% as a statement credit when you use your card on eligible Delta in-flight purchases and complimentary car rental loss and damage insurance.
Cardholders also stand to benefit through purchase and fraud protection in different scenarios.
Pros
No annual fees
Earn 10,000 bonus miles if you spend $500 on purchases in the first three months
Earn 2x miles on Delta purchases and dining
Earn 1x miles on all other purchases
Redeem points for air travel, seat upgrades and Delta gift cards
No blackout dates when redeeming points for Delta flights
20% back on eligible in-flight Delta purchases
Pay no foreign transaction fees
Car rental loss and damage insurance
Purchase protection and extended warranty to safeguard your purchases
Access to American Express Experiences
Get emergency assistance through the Global Assist Hotline
Fraud protection safeguards you from misuse of your card
Cons
Cash advance fee
Penalty APR applies in cases of late and returned payments
$0 annual fee
2x miles on dining and Delta purchases, and 1x miles on all other purchases
Get 10,000 bonus miles upon spending $500 on purchases in the first three months
Redeem your SkyMiles for air travel to more than 1,000 destinations
Redeem for seat upgrades and Delta gift cards
Reduce the cost of your flight by up to $50 for every 5,000 miles you redeem through the Pay with Miles program
No foreign transaction fees
Get complimentary car rental loss and damage insurance
Get purchase protection and extended warranty
Use the 24/7 Global Assist Hotline for emergency assistance and coordination services
Fraud protection protects you from fraudulent transactions
American Express Experiences gives you access to ticket presales and Card Member-only events.
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
Best Cash Back Credit Cards with No Foreign Transaction Fees
The best cash back cards with no foreign transaction fees include ones that offer high flat cash back rates for all purchases and ones that offer even higher cash back rates on category-based spending. However, you need to account for the annual fee you’ll need to pay as well.
FEATURED
Capital One SavorOne Rewards
A great no-annual-fee card that comes with rewards
Good–ExcellentCredit Needed
3% Cash Back*Rewards Rate
15.49%–25.49%APR
We love the no-annual-fee Capital One SavorOne Rewards card because it gives you the ability to earn unlimited 3% cash back across different categories and 1% cash back on all others. New cardholders stand to earn a $200 early spend bonus, provided they spend $500 on purchases in the first three months. Being able to redeem your cash back in multiple ways is a definite plus.
An introductory 0% APR offer on purchases and balance transfers for the first 15 months may lead to reasonable savings.
Using this card during your international travels is perfect because it comes with no foreign transaction fees.
Cardholders also stand to benefit through complimentary travel accident insurance and travel assistance services.
Pros
No annual fees
Earn 3% cash back on entertainment, dining, popular streaming services and at grocery stores
Earn 1% cash back on all other purchases
Get 8% cash back when you book tickets through Vivid Seats until January 31, 2023
Earn a $200 cash bonus if you spend $500 on purchases within the first three months
Earn unlimited cash back that does not expire for the life of the card
Redeem cash back in the form of a statement credit or a check
You may also use your cash back rewards through PayPal and Amazon.com
Pay no foreign transaction fees
Get complimentary extended warranty, travel accident insurance, 24-hour travel assistance services and concierge services
Get protection against unauthorized use of your card through $0 fraud liability
Get special access to premier culinary experiences as well as music and sporting events
Cons
The APR that applies on purchases after the first 15 months is based on your creditworthiness
Cash advance fee
Balance transfer fee
$0 annual fee
0% intro APR on purchases and balance transfers for the first 15 months
Unlimited 3% cash back on dining, entertainment, popular streaming services and at grocery stores
Unlimited 1% cash back on all other purchases
Get a $200 bonus after spending $500 on purchases in the first three months
Redeem your cash back as a statement credit, as a check or through Amazon.com or PayPal
Credit rating-dependant APR on purchases
No foreign transaction fees
Complimentary travel accident insurance and access to 24-hour travel assistance services
Complimentary 24-hour access to concierge services
Purchases made using card protected by extended warranty
$0 fraud liability to safeguard against fraudulent use
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
Best cash back rewards credit card for everyday spending
Good–ExcellentCredit Needed
1.5% Cash BackRewards Rate
15.49%–25.49%APR
The Capital One Quicksilver Cash Rewards Credit Card is all about cash back rewards, as suggested by the name. Taking advantage of cash back rewards is super easy since there aren’t any purchase limitations or requirements; you enjoy a flat 1.5% cash back all day, every day.
Thus, this is a simple and easy-to-use card that doesn't require you to keep track of spending limits or bonus categories (that would otherwise boost your cash back percentage). More importantly, you can redeem your cash back rewards points whenever you want. There’s no need to amass $25, $50 or any other arbitrary amount before you can take advantage of your spending habits.
Aside from its excellent rewards offer, this credit card offers extremely low fees and an attractive sign-up bonus. The $200 in cash is yours as soon as you spend $500 on purchases within the first three months.
You’ll also benefit from a 15-month 0% APR period, making this even more appealing for folks new to cash back rewards or other programs.
Pros
Very high, versatile cash back rewards
No minimum redemption amount
Sign-up bonus is solid
No annual/foreign transaction fees
15-month 0% APR introductory period
Cash back rewards never expire
Cons
Have to have good/excellent credit
Has a 3% transfer fee
No bonus rewards if you like the idea of bonus categories
$200 cash bonus applies after spending $500 within three months after card sign-up
Unlimited 1.5% cash back on all purchases
No bonus categories or rotating bonus percentages to worry about
Cash back rewards can be used anytime — no point/value minimums
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
Best Credit Cards for International Students & Study Abroad
The best credit cards for international students and study abroad come with no foreign transaction fees. Several top student credit cards offer cash back/rewards. You might also benefit by getting complimentary situation-based insurance coverage.
FEATURED
Deserve EDU Mastercard for Students
Best student cash back card for limited credit history
None–PoorCredit Needed
1% Cash BackRewards Rate
18.74%APR
This card has no annual fee, provides cell phone protection and offers a solid cash back rate: 1% back on all purchases. Students also receive one year free of Amazon Prime Student after spending $500 in the first three billing cycles — a spending requirement many students will likely find easy to meet if they open this account at the start of a new semester.
Finally, this card doesn’t charge any foreign transaction fees, making it ideal for anyone looking to study abroad.
Pros
Earn 1% cash back on all your purchases
There is no annual fee or foreign transaction fee
You will have complimentary Amazon Prime Student for a year
Complimentary cell phone protection when you use your card to pay your cell phone bill
Do not need a Social Security number (SSN) to apply
Access to Mastercard Platinum benefits
Cons
High APR on purchases
Students earn 1% cash back on all purchases.
There’s no annual fee, nor are there foreign transaction fees.
Cardholders receive Amazon Prime Student for one year.
Cell phone protection (up to $600) is included when you pay your phone bill with your card.
Mastercard Platinum benefits, such as rental car insurance, are included.
Easy-to-use app helps you manage your account and pause access to your card if you misplace it — all on the go.
Disclaimer: Card offers are always changing, and in some cases, the offer listed on our site may no longer be available.
Best student credit card with up to 1.25% cash back
Limited–FairCredit Needed
1.25% Cash Back*Rewards Rate
26.99%APR
This card offers 1% cash back on all your purchases, which may make paying top dollar for those textbooks slightly easier on the wallet. Paying your bill on time boosts that cash back to a total of 1.25% for the month. Plus, you earn $5 per month for 12 months on select streaming subscriptions.
These features are great for college students because they incentivize building healthy financial habits and provide discounts on recurring bills like Netflix and Hulu subscriptions.
Finally, this card has zero foreign transaction fees, which is an excellent feature for international students or those who anticipate studying abroad.
Pros
Earn 1% cash back on all your purchases, with a jump to 1.25% cash back when you pay your bills on time.
There is no annual fee or foreign transaction fee.
After six months, Capital One will reexamine your credit profile to see if you are eligible for a higher credit line. This can give students more purchasing power and flexibility without opening another card.
Earn $5 per month in statement credits on select streaming subscriptions for the first 12 months when you pay on time.
Cons
High APR on purchases
Lack of robust benefits
Cardholders receive 1% cash back on all purchases.
Pay your bill on time and receive a 0.25% cash back bonus on top of that.
A $5 credit is applied monthly to select streaming subscriptions (for the first year).
$0 fraud liability policy provides peace of mind.
There are no foreign transaction fees, which is great for travelers.
You have unlimited access to CreditWise from Capital One so you can check in on your credit profile at any time.
There's no cosigner required, although one may be helpful.
When making purchases online, you can generate virtual card numbers so that your actual card number is kept private.
Disclaimer: We work hard to stay updated with the latest information, but card offers are always changing, and in some cases, the offer listed on our site may no longer be available.
Best Business Credit Cards Without Foreign Transaction Fees
The best business cards with no foreign transaction fees are typically ones that are geared for international travel by offering benefits such as access to airport lounges, priority boarding and travel insurance. Several such cards offer rewards/cash back as well.
FEATURED
Capital One Spark Miles
Best flat-rate rewards card for frequent flyers
Good–ExcellentCredit Needed
2 Miles per $1Rewards Rate
20.99%APR
We recommend the Capital One Spark Miles Card to businesses that want to earn unlimited cash back on their spending. You also get to earn a 50,000 miles early-spend bonus by spending $4,500 on purchases in the first three months.
Booking hotels and rental cars through Capital One Travel comes with 5x miles per dollar. All other purchases earn 2x miles per dollar.
Using this card outside of the U.S. is ideal as it charges no foreign transaction fees. Cardholders get two free visits to Capital One Lounges each year as well as credit toward Global Entry or TSA PreCheck fees.
There is no annual fee to pay for the first year, but you need to pay $95 per year thereafter. Employee cards come at no additional cost.
Pros
Flat-rate rewards of 2x bonus miles
No foreign transaction fees
New cardholder offers
Free employee cards
Flexible payments
Cons
No special reward categories
High regular and penalty APR
Limited travel partners for rewards redemption
Spend $4,500 in the first three months and earn 50,000 bonus miles
$0 intro annual fee for the first year
2x unlimited miles per dollar
Employee cards
Set up automatic payments.
Zero fraud liability
Year-end itemized summaries for tax and budgeting purposes
Purchase records in multiple formats
Virtual card numbers for making safer payments online
Tracking and monitoring of all cards
Purchase alerts for all cards
Lock and unlock cards using mobile app or online banking
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
This business credit card is perfect for earning Hilton Honors points
Good–ExcellentCredit Needed
3–12 Points per $1*Rewards Rate
15.74%–24.74%APR
We love the American Express Hilton Honors Business Card not only because it offers a high reward rate for spending at Hilton properties, but for its reward rate that applies on other business-specific spending. It comes with a sizable welcome bonus too.
You get to earn 130,000 bonus points if you spend $2,000 on purchases in the first three months. An additional 50,000 bonus points come your way if you spend a total of $10,000 on purchases within the first six months.
Using this card at Hilton properties comes with 12x points. It offers 6x points for spending on wireless telephone service purchased directly from U.S. service providers, on flights booked with Amex Travel or directly with airlines, on car rentals booked directly through select companies, on U.S. purchases for shipping, at U.S. gas stations and at U.S. restaurants.
You qualify for a free reward night if you spend $15,000 on eligible purchases in a calendar year. If you spend $60,000 on eligible purchases in a calendar year, you earn a second free reward night.
All cardholders get complimentary Hilton Honors Gold status, which comes with added perks such as daily food & beverage credit (at U.S. hotels) or continental breakfast (at non-U.S. hotels) and availability-based room upgrades.
Your linked Priority Pass Select membership brings with it 10 complimentary airport lounge visits each year. Not having to pay foreign transaction fees may lead to savings when you travel overseas. Other travel benefits include complimentary baggage insurance plan and car rental loss and damage insurance.
Extended warranty and purchase protection are in place to safeguard your business purchases. You may choose to get additional employee cards, and you also get access to different expense management tools.
Pros
Ability to earn considerable bonus points
High reward rates across multiple categories
Complimentary Hilton Honors Gold status
Spend-based free night rewards
No foreign transaction fees
Additional employee cards
Dedicated account manager
Integration with QuickBooks and year-end expense summaries
Cons
Annual fee of $95
Reward nights are spending-based
Reward nights expire after one year of issuance
Cash advance fee
Penalty APR may apply in case of late and returned payments
Earn 130,000 bonus points if you spend $2,000 on purchases within six months from account opening.
Earn 50,000 more bonus points if you spend $10,000 on purchases within six months from account opening.
Spending at properties within the Hilton portfolio comes with 12x points.
You get 6x points at U.S. restaurants, at U.S. gas stations, on wireless telephone service purchased directly from U.S. service providers, on U.S. purchases for shipping, on car rentals booked directly through select companies and on flights that you book through Amex Travel or directly with airlines.
You earn 3x points on all other purchases.
Any additional employee cards you get earn reward points as well.
If you spend $15,000 on purchases in a calendar year, you earn a free night reward.
If you spend a total of $60,000 on purchases in a calendar year, you earn an additional free night reward.
By enrolling in the Priority Pass Select program, you get 10 complimentary airport lounge visits each year.
Safeguard your travels and purchases through car rental loss and damage insurance, baggage insurance plan, purchase protection and extended warranty.
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
An excellent no-annual-fee rewards card for Costco members
ExcellentCredit Needed
1–4% Cash Back*Rewards Rate
15.24%APR
We recommend the Citi Costco Anywhere Visa Business Card for small businesses that are Costco members and are looking for a no-annual-fee card. Category-based spending lets you earn up to 4% cash back. You may redeem the cash back you earn at Costco Warehouses across the U.S. This card also comes with a competitive APR for purchases.
Using this card when traveling outside of the U.S. makes sense as it does not charge any international transaction fees.
Purchases you make using this card receive cover through extended warranty as well as damage and theft purchase protection.
Cardholders may also use the Citi Entertainment and Citi Concierge services to good effect.
Pros
Pay no annual fees
Pay no foreign transaction fees
Earn 4% cash back on all gas purchases globally for up to $7,000 in spending per year, and 1% thereafter
Earn 3% cash back when spending at restaurants and on eligible travel purchases globally
Get 2% cash back on all non-gas related purchases at Costco and Costco.com
Get 1% cash back on all other purchases
Redeem cash back for cash or merchandise at Costco Warehouses across the U.S. and Puerto Rico
Competitive APR for purchases
Fraud early warning to safeguard your account
Extended warranty and damage and theft purchase protection to safeguard your purchases
Access to presale tickets and special events via Citi Entertainment
24/7 access to Citi Concierge
Cons
Need to be a Costco member to apply
Cash back provided as an annual credit card reward certificate at the close of the February billing cycle
Penalty APR applies in cases of returned and late payments
Cash advance fee
No complimentary travel coverage
$0 annual fee
Competitive APR for purchases
4% cash back on spending of up to $7,000 per year on all gas purchases globally, and 1% thereafter
3% cash back on spending at restaurants and on eligible travel purchases worldwide
All purchases at Costco and Costco.com (other than gas) come with 2% cash back
Spending across all other categories gets you 1% cash back
Redeem earned cash back for merchandise or cash at any Costco warehouse in the U.S. and Puerto Rico
No foreign transaction fees
Complimentary extended warranty and damage and theft purchase protection
Complimentary access to Citi Concierge and Citi Entertainment
Fraud early warning in case of suspicious activity
Disclaimer: Credit card offers are constantly changing. We work hard to stay updated with the latest information, but the offers listed on our site may no longer be available.
How We Rank No Foreign Transaction Fee Credit Cards
Our lists of the best credit cards are based on publicly available data from card issuers and other reputable sources like the Consumer Finance Protection Bureau. We review each card's fees, interest rates, rewards, benefits and more to assign a rating for each feature. These ratings are stack ranked and weighted for each card category to determine our top selections for each type of user. Because card details change regularly, we revisit our data each month to update our ratings, recommendations and other card information as needed. Learn more about our data collection and ranking process.
Top Rating Criteria for No Foreign Transaction Fee Credit Cards
APR
Rewards Rate
Annual Fee
Quick Tips for Comparing Cards with No Foreign Transaction Fees
Different aspects require your attention when comparing credit cards without foreign transaction fees.
Credit needed: People with good to excellent credit are able to choose from several no international fee credit cards. If you have fair credit, you still have a few options. Some student credit cards come with no foreign transaction fees. If you have poor credit, you may want to consider getting a secured credit card with no foreign transaction fees.
Annual fee: While it’s common for airline and hotel travel rewards cards to charge annual fees, you may still find a number of credit cards with no foreign transaction fees and no annual fees. If you plan to get a card with an annual fee, determine if the rewards you earn and the benefits you stand to enjoy will outweigh the cost of the card.
Interest rates: You’ll want to pay particular attention to the annual percentage rate (APR) that comes with a credit card if you plan to carry a balance from one billing cycle to the next.
Rewards/cash back: Many no foreign transaction fee cards offer rewards/cash back. While some cards offer flat earn rates across all spending, others offer higher earn rates on category-based spending. The latter might be beneficial if you spend more on any particular category such as travel, dining, gas or groceries.
Introductory offers: Introductory offers typically require you to spend at least a minimum amount within a given time frame to earn a bonus that may come in the form of points, cash back or miles. For example, a card might offer $250 as cash back if you spend $3,000 on purchases within the first three months.
Added benefits: People who plan to use their cards internationally may benefit by looking for travel-related benefits such as complimentary insurance coverage, priority boarding, airport lounge access and seat upgrades. Other benefits may come in the form of statement credits, extended warranty and $0 fraud liability.
Best No Foreign Transaction Fee Credit Cards Compared at a Glance
Compare the top credit cards with no international fees based on factors such as the specific type of card you’re after, annual fees and reward rates.
MoneyGeek's Quick Guide to Understanding Foreign Transaction Fees
When you use a credit card issued in the U.S. outside of the country, you might need to pay a foreign transaction fee of around 3%. Cards that charge this fee apply it on every international transaction. As a result, if you plan to use a credit card outside of the U.S., it makes sense to travel with one that does not charge any foreign transaction fees.
Foreign transaction fees come as fixed percentages. This implies that no matter the size of your transaction, you’ll need to pay a fixed percentage of the transaction amount as fees.
How Do Foreign Transaction Fees Work?
Foreign transaction fees typically consist of two parts — network fees and issuing bank fees. Credit card networks charge the former, whereas a card’s issuer charges the latter. Cards with no foreign transaction fees are ones where issuers absorb the network fees. The foreign transaction fee that you see in your card’s Terms and Conditions under the Fees section includes both and is denoted as a percentage.
Foreign transaction fees are typically around 3%, but some card issuers may charge more or less. What this essentially means is that you’ll end up paying around $3 per $100 you spend on international transactions.
This fee might also apply if you make purchases through international websites that use foreign banks or institutions as payment processors.
Calculating Foreign Transaction Fee
Foreign purchase price x 0.03 = Fee amount Foreign purchase price + Fee amount = Cost of foreign purchase
FN purchase in $
+3% fee
$20
$20.60
$50
$51.50
$100
$103
$500
$515
Which Credit Card Issuers Charge Foreign Transaction Fees?
Most credit card providers charge foreign transaction fees with a few or more of their cards. Capital One is one bank that does not charge any fees when you use its credit cards for foreign currency transactions.
Card Issuer
Standard Foreign Transaction Fee
Cards without Foreign Transaction Fees
American Express
2.70%
American Express Business Gold Card,
American Express Hilton Honors Card,
American Express Delta SkyMiles Blue Card,
American Express Delta SkyMiles Gold Business Card,
American Express Delta SkyMiles Gold Card,
American Express Marriott Bonvoy Brilliant Card,
American Express Marriott Bonvoy Business Card,
American Express Delta SkyMiles Reserve Business Card,
American Express Delta SkyMiles Reserve Card,
American Express Gold Card,
Chase Marriott Bonvoy Boundless,
American Express Business Platinum Card,
American Express The Platinum Card
Barclaycard/Luxury Card
0%
Mastercard Gold Card,
Mastercard Black Card,
Mastercard Titanium Card
Chase
3%
Chase Sapphire Preferred credit card,
Chase Sapphire Reserve,
Southwest Rapid Rewards Priority Credit Card,
Southwest Rapid Rewards Premier Credit Card,
United Club Infinite Card,
United Gateway Credit Card,
United Quest Card,
United Explorer Card,
British Airways Visa Signature card,
Aer Lingus Visa Signature card,
Iberia Visa Signature card,
Marriott Bonvoy Boundless credit card,
Marriott Bonvoy Bold credit card,
World of Hyatt Credit Card,
IHG Rewards Club Premier Credit Card,
Amazon Prime Rewards Visa Signature Card,
World of Hyatt Business Credit Card,
Ink Business Preferred credit card,
United Business Card,
Southwest Rapid Rewards Performance Business Credit Card
Citi
3%
Citi Costco Anywhere Visa Business Card,
Citi Costco Anywhere Visa Card,
Chase Sapphire Preferred,
Citi Premier Card,
Chase Southwest Rapid Rewards Performance Business,
Chase Southwest Rapid Rewards Plus,
Chase Southwest Rapid Rewards Premier,
Chase Southwest Rapid Rewards Premier Business,
Chase United Business,
Chase United Club Infinite,
Chase United Explorer,
Chase United Gateway,
Chase IHG Rewards Club Premier,
Citi AAdvantage Executive World Elite Mastercard,
Citi AAdvantage Platinum Select World Elite Mastercard,
Citi CitiBusiness AAdvantage Platinum Select Mastercard
Capital One
0%
Capital One Journey Student Rewards,
Capital One Platinum Credit Card,
Capital One Quicksilver Rewards,
Capital One QuicksilverOne Rewards,
Capital One SavorOne Rewards,
Capital One Secured Mastercard,
Capital One Spark Cash,
Capital One Spark Cash Select,
Capital One Spark Miles,
Capital One Venture,
Capital One VentureOne Reward
U.S. Bank
2% - 3%
U.S. Bank Altitude Go Visa Signature Card,
U.S. Bank Altitude Connect Visa Signature Card,
U.S. Bank Altitude Reserve Visa Infinite Card,
U.S. Bank FlexPerks Gold American Express Car
Wells Fargo
3%
Hotels.com Rewards Visa Credit Card
Who Should Consider a Card with No Foreign Transaction Fees?
Credit cards with no foreign transaction fees may come in handy under different scenarios:
Studying abroad: American students who plan to study in other countries may benefit by using such cards. A number of student credit cards come with rewards/cash back too.
Vacationing internationally: Getting a travel rewards credit card with no foreign transaction fees is the way to go if you vacation outside of the U.S. frequently.
Shopping from international websites: You might end up paying foreign transaction fees without leaving the country if you shop through websites based outside of the U.S. In this case, using a card with no foreign transaction fees might be in your best interest.
Doing business globally: If you or your employees need to travel internationally for business purposes, getting a business credit card without foreign transaction fees may lead to noticeable savings, all the more so if it comes with rewards/cash back.
How to Prepare for Foreign Travel
Traveling overseas requires paying attention to different factors, one of which includes how you plan to use your money. Fortunately, following a few simple measures can help minimize the possibility of things going wrong while you’re away.
Inform your card provider: Your card provider might decline an out-of-the-blue international transaction on account of it being possibly fraudulent. To ensure this does not happen, inform your card provider about your plan to use your card outside of the country in advance.
Carry more than one card: Carrying more than one card when overseas is a good idea because there’s no telling when you might face declined transactions. Besides, carrying multiple cards gives you the ability to maximize your reward-earning potential through category-based spending. Remember that while cards from Visa and Mastercard find widespread acceptance outside of the U.S., the same is not the case with American Express and Discover cards.
Use no foreign transaction fee cards: Unless you want to pay around 3% of each international transaction as additional fees, using a no foreign transaction fee card is the way to go.
Check the protection your cards offer: Check which of your cards offer protection in the form of accident insurance, trip cancellation/interruption insurance, trip delay reimbursement, baggage delay coverage and lost baggage insurance. Remember that you might need to use the card in question to book your flight tickets to take advantage of these benefits.
Carry cash: Several merchants worldwide do not accept credit cards, all the more so in remote locations. In Europe, cash transactions still account for a significant percentage of all monetary transactions. According to a 2020 study carried out by the European Central Bank, cash payments accounted for 73% of the total volume of point-of-sale (POS) and peer-to-peer (P2P) transactions across 17 euro area countries in 2019.
Tips for Avoiding Foreign Transaction Fees
You may avoid paying foreign transaction fees by:
Using the right credit cards: These include ones that come without overseas transaction fees.
Paying in local currencies: When presented with the option of paying in the local currency or U.S. dollars, opt for the former. This is because local merchants and ATM operators that let you transact in U.S. dollars add built-in conversion fee markups that are typically higher than those charged by payment networks such as Visa and Mastercard.
Using traveler's checks: Traveler’s checks give you a secure way to take your money with you, and you might not have to pay any fees if you get them through your bank. However, not many merchants accept them anymore.
Exchanging currency before you leave: You might be able to get a better deal when buying foreign currency through your bank before leaving than at an airport, your hotel, or a currency exchange center in a foreign country.
Avoiding using ATMs: Using ATMs outside of the country tends to come with additional fees. If you’re unable to find partner ATM networks you may use for free, consider limiting the number of ATM transactions you carry out.
Paying with cash: Using the local currency you have is a surefire way of avoiding overseas transaction fees. Paying in cash also provides opportunities to haggle on prices with local vendors, which can offer even more savings.
FAQs About No Foreign Transaction Fee Credit Cards
Learning the answers to other commonly asked questions about credit cards with no foreign transaction fees will help when comparing your options and choosing a card.
Any credit card with no foreign transaction fee is good for use outside of the country. However, the credit card that is best for foreign transactions depends on your specific spending patterns and requirements. For instance, if you’re a frequent traveler, your best bet would be getting a travel rewards card with no foreign transaction fees.
If your credit card charges foreign transaction fees, expect to pay about 3% of each international transaction.
Credit card providers originally charged foreign transaction fees to offset the costs involved in settling cross-border payments and to minimize risks owing to exchange rate fluctuations. Technological advancements in the global banking system have led to addressing most such concerns, but some credit card issuers continue charging this fee. Other than the issuing bank’s fee, foreign transaction fees also include fees charged by payment networks.
Given that you might need to pay about 3% of each international transaction as foreign transaction fees and that you can find several cards that do away with this fee, it is safe to say that foreign transaction fees are bad.
No. You cannot expect a refund of the foreign transaction fees you pay.
If you make a business-related purchase, you may deduct its corresponding foreign transaction fee as a business expense. This is not the case with foreign transaction fees incurred on personal expenses.
If a website based outside of the U.S. relies on an international bank or institution for processing your payment, you might need to pay a foreign transaction fee.
If your credit card comes with no foreign transaction fees and lets you earn cash back or rewards, using it might be more cost-effective than using cash. Irrespective of whether you use your credit card in a foreign country or exchange U.S. dollars for local currencies, you will need to bear currency conversion fees at some stage.
Much like credit cards, debit cards may come with foreign transaction fees. However, there are banks in the U.S. that provide debit cards with no foreign transaction fees.
Your credit card’s issuer charges transaction-based foreign transaction fees. All the fees you incur during one billing cycle reflect on your next credit card statement and add to your total outstanding amount. Depending on how you make payments toward your credit card, you may pay any amount ranging from the minimum monthly due to the entire outstanding amount.
Since there is no single best international credit card, consider selecting one from the array of great rewards, cash back, travel and student credit cards that we’ve determined are among the best through meticulous research.
Rajiv Baniwal has been writing about different financial topics for over 15 years. Meticulous in his research, he makes sure he provides accurate and up-to-date information. His areas of expertise include mortgages, personal loans, credit cards, insurance and international money transfers.
*Rates, fees or bonuses may vary or include specific stipulations. The content on this page is accurate as of the posting/last updated date; however, some of the offers mentioned may have expired. We recommend visiting the card issuer’s website for the most up-to-date information available. Editorial Disclosure: Opinions, reviews, analyses and recommendations are the author’s alone and have not been reviewed, endorsed or approved by any bank, credit card issuer, hotel, airline, or other entity. Advertiser Disclosure: MoneyGeek has partnered with CardRatings.com and CreditCards.com for our coverage of credit card products. MoneyGeek, CardRatings and CreditCards.com may receive a commission from card issuers. To ensure thorough comparisons and reviews, MoneyGeek features products from both paid partners and unaffiliated card issuers that are not paid partners.
