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

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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. It may seem like any other transaction, but the credit card issuer covers various costs associated with international purchases such as transferring money through a foreign bank and more.

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

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. 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.

Due to automation improvements in the global banking system, foreign transaction fees are becoming less common, particularly among premium or travel credit cards. 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.

Foreign transaction fees typically show up on your credit card statement at the end of your billing cycle and get paid when you pay your credit card balance.

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.

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. When traveling overseas or shopping with international vendors, you may also have to deal with other common credit card fees that can decrease your purchasing power, including cash advance fees, ATM fees and conversion fees.

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 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:

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:

• Check if base rewards come with the card. If you want to earn rewards while avoiding foreign transaction fees, look for cards that offer bonus rewards in categories that match your spending habits. In addition to travel cards offering points or miles, some of the best no-foreign-transaction-fee cards offer cash back rewards on popular spending categories.
• See if other travel-related perks are available. If you want to choose a travel credit card, compare the full suite of benefits each one offers. Along with base rewards and a lack of foreign transaction fees, top-tier travel credit cards commonly offer trip cancellation insurance, free checked bags, complimentary Wi-Fi, airport lounge access and other notable travel benefits.
• Confirm if there is an annual fee. Annual fees are common among mid-tier and premium travel credit cards, even if these cards skip foreign transaction fees. When considering cards with an annual fee, it’s important to weigh whether that fee can be offset with reward earnings and  added benefits or if you can just shoulder the added cost. Keep in mind that you may find some annual-fee cards that are worth the expense due to the high-end rewards they offer.
• Look out for any other fees. While comparing options, it’s important to know what fees you might incur. Common credit card fees include annual fees, late fees (usually up to $40 for each missed payment), balance transfer fees (typically 3 percent to 5 percent of the amount you’re transferring), cash advance fees and returned payment fees.
• Check the card’s APR. The annual percentage rate (APR) or interest rate on a card is a key feature to consider when picking a card with no foreign transaction fee. Some rewards credit cards have APRs that are higher than average, which can be a significant factor in your purchases abroad if you carry a balance on the card. 
• Pick a card specific to your needs. For some people, prioritizing having no foreign transaction fees can save hundreds of dollars. 
• If you’re a frequent international traveler, a credit card without foreign transaction fees such as the Bank of America Travel Rewards Card or the Chase Sapphire Preferred Card have a rewards program that lets you earn points toward cash back or travel expenses.
• If you’re shopping online from a non-U.S. merchant, you’ll be charged a foreign transaction fee because the money is still passing through the merchant's foreign bank. The Capital One Quicksilver Cash Rewards Card is a no-foreign-transaction-fee credit card that allows you to earn unlimited 1.5 percent cash back on every purchase — so you don’t have to worry about keeping up with tiered reward rates or categories for spending.
• If you’re a student planning to study abroad or do some post-graduate traveling, a no-foreign-transaction-fee credit card such as the Discover it® Student Cash Back card should be in your wallet. With its $0 annual fee, impressive rewards rate and first-year Cashback Match™, it's one of the best student credit cards on the market. 
• If you're a business owner who travels overseas frequently, multiple fees and exchange rates can be frustrating every time you or your employees make a purchase. The Capital One Venture X Rewards card has no foreign transaction fees (See Rates and Fees) and exceptional rewards. But if you’re not a fan of paying a hefty annual fee, the Capital One Venture Rewards Card is a cheaper alternative.

Still unsure if a no-foreign-transaction-fee credit card is right for you? Check out our Credit Card Spender Type Tool, where you can get personalized credit card recommendations based on your credit score, spending habits and daily needs.

If you often travel overseas or make purchases in foreign currencies, it's worth understanding why a card with no foreign transaction fee might benefit you. 

Reasons to get a card with no foreign transaction fees

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.
• 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 will have a small metallic computer chip and require a 4-digit personal identification number to help verify purchases. 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.

Should I get a no-foreign-transaction-fee credit card or traveler’s checks?

Whether or not you should get traveler’s checks or a credit card with no foreign transaction fee depends on your preferences, but keep in mind that getting traveler's checks may be more difficult than using a credit card. Some banks no longer offer traveler's checks, so you may have to jump through more hoops to get them. 

However, with a credit card you can enjoy the same protections and benefits as you would with a traveler's check, such as:

• Replacement protection. If you lose or have your traveler's checks stolen, they can be replaced, but many credit cards also come with replacement protection. If your card is lost or stolen, you may notify your issuer and they will deactivate the existing card and send you a new one.
• Broad acceptability. You could use traveler's checks at places that didn't take personal checks. However, you wouldn't have to worry about acceptability with a Visa or Mastercard credit card either. 
• Replacement for cash. While an added benefit of a traveler's check is that you could exchange it for cash, using a credit card with adequate security features makes using cash internationally unnecessary.

If you're looking for an alternative to credit cards with no foreign transaction fees, here are some great options:

When evaluating the best credit cards with no foreign transaction fee, we take into account several factors, including how cards score in our proprietary card rating system and whether they offer features that fit the priorities of a diverse group of cardholders, from earning rewards to scoring a large sign-up bonus to saving on interest.

We analyzed over 250 of the most popular credit cards and selected standouts that carry no foreign transaction fee. We scored each card based on the factors most relevant to its primary category, including its rewards rate, estimated annual earnings, intro APR period, ongoing APR, perks and more to determine whether it belonged in this month’s roundup.

Here are some of the key factors that we considered:

For Capital One products listed on this page, some of the above benefits are provided by Visa® or Mastercard® and may vary by product. See the respective Guide to Benefits for details, as terms and exclusions apply.