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Any purchase that passes through a non-U.S. bank — from physical purchases abroad to online transactions with foreign merchants — is subject to a foreign transaction fee. Charged by card issuers, these fees are typically around 3% of the transaction price. Luckily, some credit cards waive these fees. Whether you're a thrifty traveler or a business owner hoping to save money, you have plenty of options when it comes to credit cards with no foreign transaction fees. Check out our in-depth reviews and some of the best offers from our partners.
The information about the Costco Anywhere Visa® Business Card by Citi, Costco Anywhere Visa® Card By Citi, Citi® / AAdvantage® Executive World Elite Mastercard®, CitiBusiness® / AAdvantage® Platinum Select® World Mastercard®, Citi® / AAdvantage® Platinum Select® World Elite Mastercard®, Hilton Honors American Express Surpass® Card, Bank of America® Travel Rewards Credit Card for Students, and Capital One Savor Cash Rewards Credit Card has been collected independently by Bankrate.com. The card details have not been reviewed or approved by the card issuer.
| Card name | Annual fee | Best for | Bankrate review score |
|---|---|---|---|
| Capital One Quicksilver Cash Rewards Credit Card | $0 | Cash back on international purchases | 3.2 / 5 (Read full card review) |
| Bank of America® Travel Rewards credit card | $0 | No annual fee | 3.8 / 5 (Read full card review) |
| Chase Sapphire Preferred® Card | $95 | Redemption flexibility | 4.3 / 5 (Read full card review) |
| Discover it® Cash Back | $0 | Customer service | 4.2 / 5 (Read full card review) |
| Capital One Venture Rewards Credit Card | $95 | Travel rewards | 4.3 / 5 (Read full card review) |
| Capital One VentureOne Rewards Credit Card | $0 | Foreign travel beginners | 3.6 / 5 (Read full card review) |
| American Express® Gold Card | $250 | International dining | 4.5 / 5 (Read full card review) |
| Discover it® Miles | $0 | First-year miles bonus | 3.8 / 5 (Read full card review) |
| Chase Sapphire Reserve® | $550 | Luxury perks | 4.5 / 5 (Read full card review) |
| Discover it® Student Cash Back | $0 | Student cash back card | 4.1 / 5 (Read full card review) |
| Bank of America® Travel Rewards Credit Card for Students | $0 | Studying abroad | 3.4 / 5 (Read full card review) |
Read our Capital One Quicksilver Cash Rewards Credit Card review.
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Read our Bank of America® Travel Rewards credit card review.
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Read our Chase Sapphire Preferred® Card review.
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Read our Discover it® Cash Back review.
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Read our Capital One Venture Rewards Credit Card review.
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Read our Capital One VentureOne Rewards Credit Card review.
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Read our American Express® Gold Card review.
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Read our Discover it® Miles review.
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Read our Chase Sapphire Reserve® review.
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Read our Discover it® Student Cash Back review.
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Read our Bank of America® Travel Rewards Credit Card for Students review.
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 behind the scenes the credit card issuer pays various costs associated with currency conversion, transferring money through a foreign bank and so on.
Many issuers offset these costs by charging a foreign transaction fee for every overseas purchase.
The fee usually ranges from 3% to 5% of the amount spent on each transaction, which means the cost to you can really add up:
| Foreign purchase in dollars | +3% foreign transaction fee | +5% foreign transaction fee |
|---|---|---|
| $50 | $51.50 | $52.50 |
| $100 | $103 | $105 |
| $500 | $515 | $525 |
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 that you pay often involves adding the charge from the issuing bank and the processing fee from the payment network (like Visa or Mastercard).
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.
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.
The most obvious set of people who should look for a no foreign transaction fee card are those who travel outside of the U.S. often. Being charged a foreign transaction fee on every swipe can amount to hundreds of dollars over the course of a year for a frequent traveler.
Unfortunately, you can get burned by foreign transaction fees without ever leaving your couch. If you make an online purchase from a non-U.S. merchant, you’ll be charged a foreign transaction fee because the money is still passing through a foreign bank.
Even if you aren’t currently traveling, it’s smart to plan ahead. If you’re a student planning to study abroad or do some post-graduate traveling, a credit card with no foreign transaction fees should be in your wallet.
As you search for a card to use for your upcoming international trip, it’s important to fully understand foreign transaction fees, how they work and how you can avoid them. Here are a few things to think about when searching for a card with no foreign transaction fee:
If you are looking to get rewarded for how you spend in addition to skipping out on foreign transaction fees, it may be best to look into cards that offer significant rewards that match your spending habits. In addition to travel cards offering points or miles, there are some no foreign transaction fee cards that offer cash back rewards on popular spending categories. No matter what card type you’re considering, be sure to choose a card that rewards the types of purchases you’re already making.
If you are in the market for a travel credit card, make sure you compare the full suite of benefits each one is offering. In addition to base rewards and no foreign transaction fees, top-tier travel credit cards commonly offer trip cancellation insurance, supplemental auto insurance, free checked bags, free amenities, like Wi-Fi or complimentary breakfast, airport lounge access and other notable travel benefits and coverages.
Annual fees are common among mid-tier and premium travel credit cards, which frequently skip foreign transaction fees. When determining whether to get a card with an annual fee, it’s important to weigh whether that fee can be offset or recouped with reward earnings, added benefits and perks, or if you can just generally shoulder the added cost. Luckily, there are many cards on the market that have no annual fee and no foreign transaction fee. Keep in mind that you may find some cards that do have an annual fee worth it when it comes to accessing more high-end rewards. Be sure to evaluate your own spending habits and budget needs when considering a card with an annual fee.
Some cards that skip foreign transaction fees also offer other consumer-friendly terms. Others tout no foreign transaction fees as one of many travel perks. In either case, it’s important to know what fees you might incur (and how much you’ll be charged) while comparing options. Common credit card fees include annual fees, late fees (usually around $40 for each missed payment), balance transfer fees (usually 3 percent to 5 percent of the amount you’re transferring), cash advance fees and returned payment fees.
The annual percentage rate (APR) or interest rate on a card is a key facet to consider when picking a card with no foreign transaction fee. Some rewards credit cards have APRs that are usually on the higher end of average, which can mean a lot when it comes to carrying a balance on the card and what purchases you make abroad. Be sure to know what you’ll be charged if you can’t pay your bills off in full each month.
Foreign transaction fees by credit card issuers vary according to different factors, including processing fees. Mastercard and Visa are payment networks, while American Express and Discover are credit card issuers that also have their own payment 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:
The foreign transaction fee is 2.7%. American Express operates its own payment network, so a network processing fee doesn’t apply. American Express cards that don’t charge foreign transaction fees include:
The foreign transaction fee is 3% (2% by Bank of America, 1% network processing). Bank of America cards that don’t charge foreign transaction fees include:
The foreign transaction fee is 0% — Capital One doesn’t charge the fee and absorbs the 1% network processing fee. Capital One’s no-foreign-transaction-fee cards include:
The foreign transaction fee is 3% (2% by Chase, 1% network processing). Chase cards that don’t charge foreign transaction fees include:
The foreign transaction fee is 3% (2% by Citi, 1% network processing). Citi cards that don’t charge foreign transaction fees include:
The foreign transaction fee is 0% — Discover doesn’t charge the fee and operates its own payment network, so networking processing fees don’t apply. Note: Discover cards are not as widely accepted internationally as cards in the Visa, Mastercard and American Express networks. Discover’s no-foreign-transaction-fee cards include:
Money talks, but your money needs a translator when it goes overseas. Here’s a list of tips and facts about using a credit card in a different country.
Banks will often freeze an account on suspicion of fraud if they detect unusual activity, such as a purchase being made thousands of miles from the cardholder’s address. You might be able to notify your bank through your mobile app, or you can simply call.
Some regions don’t accept certain credit card networks. Visa and Mastercard payment networks are usually your safest bets but are still not accepted in many parts of Asia. Since acceptance varies even between different regions of the same country, it’s best to contact your credit card issuer about network coverage. When it’s time to travel, you can take credit cards from at least two different networks and always have cash on hand.
Chip and PIN cards were first introduced in Europe, and many other regions of the world have embraced the technology. While magnetic stripe “swipe” cards might still work in some of these countries, using them may slow down the purchase or cause confusion. If you don’t have a chip and PIN or contactless card, you can usually swap out your magnetic stripe card by calling your credit card issuer.
If your credit card is lost or stolen, the maximum amount of fraudulent purchases you can be liable for is $50, thanks to the Fair Credit Billing Act. With debit cards, you can be liable for $500 or more, depending on how long it takes you to report the fraud. Cash, while convenient, is easy to misplace and there’s little you can do to replace it if it’s lost or stolen.
Merchants may ask you whether you’d like to pay in U.S. dollars instead of the local currency. This option requires dynamic currency conversion, and while it may seem appealing to know how much you’re spending upfront, it’s almost always a bad idea. With dynamic currency conversion, you pay a currency conversion fee upfront and banks may still charge foreign transaction fees if the purchase is processed by a foreign bank. Avoid the hassle and fees by paying in local currency with a no foreign transaction fee credit card card.
Avoiding foreign transaction fees should be at the top of your list when looking for a credit card to take with you on your future overseas trip. Here’s some advice to help save even more:
Bankrate uses a comprehensive system to evaluate credit cards and produce a 5-star score. In the case of no-foreign-transaction-fee cards, we’ve emphasized the criteria most relevant to consumers looking to maximize the value of their international purchases.
Most cards on our list are free of both annual fees and foreign transaction fees. However, some annual-fee cards offer incentives, like a large welcome or introductory offer, that offset the yearly cost of membership. For this category, we evaluated whether the total value justifies the cost of using the card.
We place priority on cards that put money back in your wallet — regardless of whether you're using it in Tucson or Tuscany. For each card, we've evaluated the earnings rate and corresponding redemption value to identify the cards that accomplish more than just offering a line of credit.
Travel perks may not be your main motivation for getting a no foreign transaction fee card, but they often provide additional benefits that increase the card’s total value. Several credit card issuers offer additional features, like travel accident insurance or trip delay insurance, to make their cards more useful to consumers.
If you still need to do some research, check out these resources from Bankrate:
Have more questions for our credit cards editors? Feel free to send us an email, find us on Facebook, or Tweet us @Bankrate.
* See the online application for details about terms and conditions for these offers. Every reasonable effort has been made to maintain accurate information. However all credit card information is presented without warranty. After you click on the offer you desire you will be directed to the credit card issuer's web site where you can review the terms and conditions for your selected offer.
Editorial Disclosure: Opinions expressed here are the author’s alone, and have not been reviewed or approved by any advertiser. The information, including card rates and fees, is accurate as of the publish date. All products or services are presented without warranty. Check the bank’s website for the most current information.
