Best no-foreign-transaction-fee credit cards of January 2023

Capital One Quicksilver Cash Rewards Credit Card: Best for cash back on international purchases

• What we love about the Capital One Quicksilver Cash Rewards card: You can automatically redeem your cash back earnings, making this one of the most streamlined rewards experiences out there.
• Who this card is good for: Simplicity lovers and credit card beginners, as this card provides a simple solid rewards structure for no annual fee.
• Alternatives: If you’re looking to maximize cash back earnings in multiple categories or have a higher rewards rate, we would suggest the Discover it Cash Back card.

Read our Capital One Quicksilver Cash Rewards Credit Card review.
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Chase Sapphire Preferred Card: Best for redemption flexibility

• What we love about the Chase Sapphire Preferred card: The Chase Sapphire Preferred’s sign-up bonus is a steal, competing with bonuses offered by luxury cards with much higher annual fees. You can also enjoy ongoing elite value at a budget price with its robust travel protections and 25 percent redemption boost toward Ultimate Rewards travel.
• Who this card is good for: Occasional travelers seeking flexibility, as points transfer at a 1:1 ratio when booking hotels and airlines with Chase’s extensive list of travel partners.
• Alternatives: Travelers looking for luxury perks such as airport lounge access or free checked bags may prefer the Delta SkyMiles® Gold American Express Card or the Delta SkyMiles® Platinum American Express Card.

Read our Chase Sapphire Preferred Card review.
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Capital One Venture X Rewards Credit Card: Best for premium travel benefits

• What we love about the Capital One Venture X Rewards card: It strikes a unique balance between premium and mid-tier travel card features. You’ll still get plenty of top-of-the-line travel benefits without having to pay extra for niche perks that you may not use often.
• Who this card is good for: Frequent travelers who want to cash in on essential travel benefits but don’t need elite cards’ bloated features and annual fees over $500.
• Alternatives: If you’re looking for travel that rewards your particular travel habits, there are cards with more brand-specific perks on things like booking with certain airlines or hotels, such as the Hilton Honors American Express Surpass® Card.

Read our full Capital One Venture X Rewards Credit Card review.
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Bank of America Travel Rewards credit card: Best for no annual fee

• What we love about the Bank of America Travel Rewards card: If you book travel through Bank of America Travel Center, you can earn an additional 1.5 points per dollar for a total of 3 points per dollar spent on airfare, hotels and rental cars. Plus, purchases made at campgrounds, zoos, art galleries, aquariums and more can be redeemed for travel statement credits.
• Who this card is good for: People looking for travel rewards in solid spending categories and nonrestrictive redemption options.
• Alternatives: This credit card lacks premium perks like airport lounge access that many luxury travelers are looking for, so a traveler searching for premium rewards and perks might find a card like The Platinum Card from American Express to be a better fit.

Read our Bank of America Travel Rewards credit card review.
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Capital One VentureOne Rewards Credit Card: Best for foreign travel beginners

• What we love about the Capital One VentureOne Rewards card: Capital One lets you redeem miles as statement credits to cover travel purchases made in the previous 90 days. This feature gives you extra flexibility to hunt for deals on third-party sites or book travel before you’ve earned all the miles you’d need to book through the portal.
• Who this card is good for: Someone who only travels occasionally but wants to earn miles on everyday purchases, as cardholders will earn a respectable 1.25X miles on all purchases.
• Alternatives: While this is a great card for someone who doesn’t want to worry about offsetting the cost of an annual fee, travel rewards maximizers who travel often are likely better off with a more premium card such as the Bank of America® Premium Rewards® card.

Read our Capital One VentureOne Rewards Credit Card review.
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Discover it Cash Back: Best for rotating cash back categories

• What we love about the Discover it Cash Back card: This card’s terrific category variety, rock-bottom rates and fees, first-year Cashback Match™and bonus category calendar announced for the full year give it an exclusive edge.
• Who this card is good for: People who enjoy bonus category variety to cover popular seasonal expenses or already have a card that rewards staple categories year-round, like purchases on groceries.
• Alternatives: The Discover it rewards program requires that cardholders activate a bonus category each quarter, track their spending and potentially change how they spend to maximize rewards, so the Capital One Quicksilver Cash Rewards Credit Card may be more suitable if you’re looking for a more low-maintenance rewards strategy.

Read our Discover it Cash Back review.
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Capital One Venture Rewards Credit Card: Best for travel rewards

• What we love about the Capital One Venture Rewards card: You can earn unlimited 2X miles on all purchases, which can be very lucrative even without a jet-setting lifestyle since your everyday purchases rack up as many bonus miles as your travel purchases.
• Who this card is good for: Occasional travelers in search of a high rewards rate and generous sign-up bonus (you’ll rack up unlimited 2X miles toward your next trip on all eligible purchases, plus 5X miles on hotels and rental cars through Capital One Travel for the road; you can also earn 75,000 bonus miles if you spend $4,000 within the first three months).
• Alternatives: If you exclusively fly one airline or stay at one hotel chain, you’re probably better off with a co-branded card — and if you don’t like annual fees, consider this card’s low-cost alternative, the Capital One VentureOne Rewards Card.

Read our Capital One Venture Rewards Credit Card review.
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American Express Gold Card: Best for international dining

• What we love about the American Express Gold card: Although a few cards reward dining both at home and in restaurants, this card’s generous annual foodie-related credits are harder to come by.
• Who this card is good for: Foodies who want to earn travel rewards on their meals at home and abroad (you’ll earn boosted points on dining at restaurants, Uber Eats and U.S. supermarkets).
• Alternatives: For travelers seeking premium travel perks like airport lounge access, you’d be better off with the Chase Sapphire Reserve, as it comes with some of the highest rewards for travel and dining compared to other luxury travel cards.

Read our American Express Gold Card review.
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Discover it Student Cash Back: Best student cash back card

• What we love about the Discover it Student Cash Back card: The Cashback Match is an unlimited dollar-for-dollar match of all the cash back you’ve earned at the end of your first year. Unlike a sign-up bonus, there’s no spending minimum, so there’s less pressure to overspend.
• Who this card is good for: Students with a limited credit history ready to dive into the world of credit card rewards. Along with a generous cash back program, this card boasts Discover’s acclaimed customer service and minimal fees, making it an ideal starter pick for credit newbies.
• Alternatives: If you don't want to activate the card's rotating bonus categories each quarter, the Discover it® Student chrome, which has a more simplified rewards program, is a better alternative.

Read our Discover it Student Cash Back review.
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Discover it Miles: Best for first-year miles bonus

• What we love about the Discover it Miles card: Discover will automatically match all miles you’ve earned at the end of your first year, which could prove even more valuable than a traditional sign-up bonus. It’s also one of the few travel cards to let you redeem miles for cash back without sacrificing rewards value.
• Who this card is good for: Occasional travelers looking for a simple rewards program and flexible redemption options.
• Alternatives: If you’re looking for travel perks or the ability to transfer miles to airline or hotel loyalty programs, cards like the Southwest Rapid Rewards® Priority Credit Card or the Marriott Bonvoy Brilliant® American Express® Card may be better suited for your needs.

Read our Discover it Miles review.
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Chase Sapphire Reserve: Best for luxury card perks

• What we love about the Chase Sapphire Reserve card: The Chase Sapphire Reserve comes with a $300 annual travel credit, which is much more flexible than many of the credits you’ll find on competing cards. Your points are also worth 50 percent more when you redeem for travel through the Ultimate Rewards portal.
• Who this card is good for: Frequent travelers looking to capitalize on travel and dining purchases.
• Alternatives: If you only travel occasionally, aren’t comfortable with a hefty annual fee or you’re not sure you’d get $550 of value out of this card each year, the Chase Sapphire Preferred is a better choice.

Read our Chase Sapphire Reserve review.
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When you use a credit card overseas to buy something in the local currency, your credit card issuer has to convert the money you’ve spent into U.S. dollars to properly bill you. It may seem like any other transaction from your perspective, but the credit card issuer pays various costs associated with currency conversion, including transferring money through a foreign bank and more.

Many issuers offset these costs by charging a foreign transaction fee for overseas purchases.

Currency conversion vs. foreign transaction fees: What’s the difference?

If you're traveling abroad, you may see a dynamic currency conversion (DCC) option on your credit card statement. Currency conversion converts an overseas credit card transaction into your home currency. Merchants market DCCs as a convenient way to help travelers understand the cost of a foreign purchase in real-time. 

For example, if you were to spend €450 on a purchase overseas, merchants can automatically display that price as $478.08 with DCC (not including the possible conversion fee).

However, DCCs are optional, and you should typically decline them. They won’t help you avoid foreign transaction fees and may even come with a conversion fee that can be as high as 7 percent to 8 percent of the purchase price. As a result, if you are charged both a foreign transaction fee and a currency translation fee on purchases, your debt can undoubtedly skyrocket.

Depending on the issuer and card, a foreign transaction fee typically ranges from 1 percent to 3 percent, but it can go as high as 5 percent. Here’s what that might look like:

On its own, one or two foreign transaction fees may seem reasonable, but the more you spend, the more those fees start to add up. To make matters worse, you may also have to deal with other common credit card fees that can erode your purchasing power. When traveling overseas or shopping with international vendors, watch out for other common fees, including cash advance fees, ATM fees and conversion fees.

Why do banks charge a foreign transaction fee?

Overseas transactions are a bit more complex than standard transactions as they require banks to convert the money spent into U.S. dollars. Foreign transaction fees are essentially a charge for this service. The total fee you pay often involves adding the charge from the issuing bank and the processing fee from the payment network (like Visa or Mastercard). However, Capital One and Discover do not charge foreign transaction fees on any of their credit cards.

Foreign transaction fees are becoming less common, particularly among premium or travel credit cards, due to automation improvements in the global banking system. However, many cards still impose the charge.

When can banks apply foreign transaction fees?

It can be hard to avoid foreign transaction fees when making purchases abroad. Unless you pay with a credit card that waives this fee, you’ll likely be charged a foreign transaction fee for:

• Hotel bookings: While it largely depends on the location of the hotel and the specific travel provider, you may be charged a foreign transaction fee when you book a stay in another country.
• Online purchases: If you purchase something from a seller based outside the U.S. and your transaction is processed abroad, you may be charged a foreign transaction fee — even if you’re shopping from the comfort of home.
• Debit card, charge card or gift card purchases: Unfortunately, you can't escape foreign transaction fees just by using a different type of card. Credit cards, debit cards, charge cards and even prepaid gift cards commonly charge foreign transaction fees.

One less fee to worry about is always a nice thing, but do you really need to prioritize no foreign transaction fees when looking for a credit card? For some people, this feature can save hundreds of dollars.

Depending on your specific needs, we propose the following cards for:

Foreign transaction fees by credit card issuers vary widely. Issuers like Amex and Discover have their own payment networks while other issuers, like Capital One or Chase, use Visa’s or Mastercard’s networks. Also, it’s not unusual for an issuer to charge a foreign transaction fee with some cards but not with others.

Here's a quick look at how the fee structure breaks down among several major credit card issuers:

When using your credit card internationally, follow these tips to ensure you’re spending your money wisely and not racking up unnecessary fees.

• Have a mix of credit cards. The excessive cost of foreign transaction fees can ruin a great experience when traveling abroad. While traveling internationally, you should use at least one credit card that doesn't charge foreign transaction fees if you want to keep these charges to a minimum. Be aware that not every credit card will work in every country, so before you go on your trip, make sure at least a couple of your credit cards use networks available in the places you’ll visit.
• Avoid cash advance fees. Withdrawing cash from an ATM with your credit card could cost you up to 5 percent of the amount withdrawn with each transaction. On top of that, you’ll also be on the hook for interest charges that are typically higher than the normal interest charges you pay for carrying a balance. Try to avoid having to take out a cash advance by keeping some cash or a debit card on hand for emergencies.
• Avoid dynamic currency conversion. Overseas merchants may offer to convert your credit card transaction to your local currency using dynamic currency conversion. Dynamic currency conversion almost always costs the consumer more than what the credit card issuer charges and you’ll likely still be charged a foreign exchange fee since a foreign bank will process the transaction. Paying in the local currency will usually be the less expensive option.
• Exchange currency before you travel. It’s a good idea to have some local currency on hand in case you're shopping somewhere that doesn’t accept credit cards. Before you travel, stop by your local bank and ask to exchange your dollars for your destination’s currency. Your bank will likely charge lower exchange fees than you’ll find at the airport (or none at all).
• Check if you’re eligible for VAT refunds. VAT or value-added tax is a flat tax levied on purchases. The consumer owes the full amount of the tax to the government at the time of purchase. Some destinations offer visitors a refund on value-added tax for goods or merchandise. Details will vary by country, but typically you’ll need to ask the merchant to help you fill out a tax form and then show that form to customs upon your departure.
• Have a chip-and-PIN credit card. If it's time for you to get a new card, go for one that has both a chip and a PIN — as it can save you from having to get cash from an ATM when you're visiting another country, and the transaction fee might be less than the foreign exchange fee the bank tacks on to your withdrawal. These cards are also more secure in general if you don’t want to worry about any fraudulent activity like stolen card data or a stolen physical card.

More information on credit cards with no foreign transaction fees

• Do you live abroad? Here are the best credit cards for expats.
• These are the best credit cards to use in Europe.
• The best business credit cards with no foreign transaction fees for business travelers.
• Here are common travel fees you can avoid with the right credit card lineup.
• How to dodge pickpocket payment fees during your next overseas vacation.

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