Best credit cards with no foreign transaction fees

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. Eligibility and Benefit level varies by Card. Terms, Conditions and Limitations Apply. Please visit americanexpress.com/benefitsguide for more details. Underwritten by Amex Assurance Company.

Compare Bankrate’s top no-foreign-transaction-fee credit cards

A closer look at the top no-foreign-transaction fee credit cards

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 at campgrounds, zoos, art galleries, aquariums and more can be redeemed for travel statement credits.
• Who this card is good for: This card offers solid travel rewards and nonrestrictive redemption options for travelers looking for flexibility.
• 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 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, 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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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 and 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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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 elite ongoing 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 first 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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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 flexible rewards (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).
• 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’re fee-averse, 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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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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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 at 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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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 in the long term.
• 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 over $500 in annual fees.
• 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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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 that lets 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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What are foreign transaction fees?

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.

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 that 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 waive 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.

How much are foreign transaction fees?

Depending on the issuer and card, a foreign transaction fee will typically range from 1 percent to 3 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.

Who should get a no-foreign-transaction fee credit card?

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.

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  International travelers

  It may go without saying, but if you travel outside of the U.S. often, you should get a credit card with no foreign transaction fees. Being charged a foreign transaction fee on every swipe can amount to hundreds of dollars over the course of a year for a frequent international traveler.

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  Online shoppers

  Unfortunately, you can get burned by foreign transaction fees without 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.

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  Students

  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.

How to choose the best card with no foreign transaction fees

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:

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  What base rewards come with the cards?

  If you want to get rewarded for how you spend in addition to skipping out on 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.

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  What other travel-related perks are available?

  If you are trying to choose 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.

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  Is there an annual fee?

  Annual fees are common among mid-tier and premium travel credit cards, which frequently skip foreign transaction fees. When considering cards 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 charging an annual fee are worth it due to the high-end rewards they offer.

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  What other fees should I know about?

  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 up to $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.

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  What is the card’s APR?

  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.

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.

Foreign transaction fees and credit card issuers

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:

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  American Express

  The foreign transaction fee is 2.7 percent. 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:

  • American Express Gold Card
  • The Platinum Card from American Express
  • Delta SkyMiles® Gold American Express Card
  • Hilton Honors American Express Surpass® Card
  • Marriott Bonvoy Brilliant™ American Express® Card
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  Bank of America

  The foreign transaction fee is 3 percent (2 percent by Bank of America, 1 percent network processing). Bank of America cards that don’t charge foreign transaction fees include:

  • Bank of America Travel Rewards credit card
  • Bank of America® Premium Rewards® credit card
  • Alaska Airlines Visa Signature® credit card
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  Capital One

  The foreign transaction fee is 0 percent — Capital One doesn’t charge the fee and absorbs the 1 percent network processing fee. Even Capital One student cards and other Capital One starter cards waive foreign transaction fees, which helps elevate these options as some of the best in their class. Capital One’s no-foreign-transaction-fee cards include:

  • Capital One Quicksilver Cash Rewards Credit Card
  • Capital One Savor Cash Rewards Credit Card
  • Capital One SavorOne Cash Rewards Credit Card
  • Capital One Spark Cash Plus
  • Capital One Venture Rewards Credit Card
  • Capital One VentureOne Rewards Credit Card
  • Capital One Venture X Rewards Credit Card
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  Chase

  The foreign transaction fee is 3 percent (2 percent by Chase, 1 percent network processing). Chase cards that don’t charge foreign transaction fees include:

  • Chase Sapphire Preferred Card
  • Chase Sapphire Reserve Card
  • Ink Business Preferred® Credit Card
  • Southwest Rapid Rewards® Premier Credit Card
  • Southwest Rapid Rewards® Priority Credit Card
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  Citi

  The foreign transaction fee is 3 percent (2 percent by Citi, 1 percent network processing). Citi cards that don’t charge foreign transaction fees include:

  • Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
  • CitiBusiness® / AAdvantage® Platinum Select® World Mastercard®
  • Citi® / AAdvantage® Executive World Elite Mastercard®
  • Citi Premier® Card
  • Costco Anywhere Visa® Card By Citi
  • Costco Anywhere Visa® Business Card by Citi
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  Discover

  The foreign transaction fee is 0 percent — 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:

  • Discover it Miles
  • Discover it Cash Back
  • Discover it® chrome
  • Discover it® Student Cash Back
  • Discover it® Student chrome
  • Discover it® Secured Credit Card
  • Discover it® Balance Transfer
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  Wells Fargo

  The foreign transaction fee is 3 percent (2 percent by Wells Fargo, 1 percent network processing). Wells Fargo cards that don’t charge foreign transaction fees include:

  • Hotels.com® Rewards Visa® Credit Card
  • Bilt World Elite Mastercard® Credit Card

How to use a credit card abroad

Money talks, but your money needs a translator when it goes overseas. Here are the important actions to take before traveling abroad with your credit card:

Contact your credit card issuer before you go

Purchases made on your credit card far from home could get flagged as suspicious. Notifying your card issuer that you’re traveling internationally will help avoid any inconveniences like frozen accounts due to suspected fraud.

Use a widely accepted credit card

Visa and Mastercard are the most widely accepted credit cards worldwide. That means if a retailer accepts credit cards, you can typically rest assured that you’re covered if you carry one of those two cards.

Discover and American Express have similar acceptance rates to Visa and Mastercard in the U.S., but still lag behind in other countries. So if your go-to credit card is a Discover or Amex card, it’s a good idea to have a Visa or Mastercard as backup.

Take your chip and PIN credit card

Chip and PIN cards require users to enter a four-digit code after they insert their card into a card reader. These cards are more effective at cutting down on fraudulent charges than older cards that use a magnetic stripe along the back.

If you have a chip and signature card, you’ll be able to make most purchases when traveling abroad, but may run into problems at vending machines and self-service kiosks and gas stations. When that happens, you may need to use cash. If you’re unsure whether you have a chip and PIN card, check with your credit card issuer.

Bring cash as backup

It’s a good idea to have some cash on hand in case of an emergency. It may even be helpful to get it ahead of time at your bank or credit union since those locations may also be the best place to exchange your currency at the best rates before traveling abroad. Just make sure to only bring enough cash to use as a backup payment option.

While convenient, cash is easy to misplace, and there’s little you can do to replace it if it’s lost or stolen. 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. Have your card issuer’s customer service number ready so you can report your card as lost or stolen quickly if you notice that it’s missing.

How to save on credit card fees when traveling abroad

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

• Use a no-foreign-transaction-fee credit card. Make sure you have at least one credit card that doesn’t charge foreign transaction fees. This feature is one of the easiest ways to avoid adding up to 3 percent of the purchase price to your total cost each time you use your card.
• 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. On top of that, you’ll likely still be charged a foreign exchange fee because 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.

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