Credit Cards with No Foreign Transaction Fees: If you travel internationally or make purchases from foreign retailers, you may have noticed extra charges on your credit card statement. These are foreign transaction fees, which can add up quickly, often around 3% per transaction.
Luckily, many credit cards offer no foreign transaction fees, saving you money while providing travel benefits like rewards points, fraud protection, and more.
In this guide, we’ll explore the best credit cards that waive these fees, their benefits, and how to choose the right one for your needs.
What Are Foreign Transaction Fees?
A foreign transaction fee is an extra charge that banks apply when you make purchases in a foreign currency or through an international payment processor. These fees typically range from 2% to 3% per transaction, which can quickly add up, especially if you travel frequently.
How Are They Calculated?
Foreign transaction fees generally include:
- Network Fees (Visa/Mastercard/Amex) – Around 1% of the transaction
- Issuer Fees (Your Bank/Credit Card Provider) – Around 2% of the transaction
For example, if you spend $1,000 abroad, you could be charged an extra $30 in fees. Over time, this becomes a significant cost.
Why Choose a Credit Card with No Foreign Transaction Fees?
1. Save Money on International Purchases
A 3% fee may seem small, but if you spend thousands abroad, the fees can total hundreds of dollars per year.
2. More Convenience
Using credit cards abroad is safer than carrying cash and often provides better exchange rates than currency exchanges.
3. Avoid Hidden Fees
Some banks include additional hidden fees when converting foreign currencies. With a no-foreign-transaction-fee credit card, you eliminate these extra charges.
Best Credit Cards with No Foreign Transaction Fees
Here are some of the top credit cards that waive foreign transaction fees:
Top Travel Cards
- Chase Sapphire Preferred® – Great for travel rewards and no foreign fees
- Capital One Venture Rewards – Earn 2x miles per dollar spent
Best Business Credit Cards
- American Express Business Gold Card – Excellent for business travelers
- Ink Business Preferred® Credit Card – Strong rewards on travel and business expenses
Best No-Annual-Fee Options
- Capital One Quicksilver Cash Rewards – 1.5% cashback on every purchase
- Discover it® Miles – No fees + 1.5x miles on all purchases
Each of these cards offers no foreign transaction fees, but they also come with unique perks.
Features to Look for in a No-Foreign-Transaction-Fee Credit Card
Not all credit cards are the same. When choosing the best one, consider:
1. Low or No Annual Fee
Some premium travel cards charge an annual fee but offer superior rewards. If you don’t travel often, a no-annual-fee card may be better.
2. Travel Rewards
If you frequently travel, look for a card that offers airline miles, hotel points, or cashback.
3. Security and Fraud Protection
Ensure your card has EMV chip technology, fraud alerts, and travel protection for peace of mind.
Travel Rewards and Cashback Benefits
Many no-foreign-transaction-fee credit cards offer bonus points on travel purchases. Here are some of the best rewards programs:
- Chase Sapphire Preferred® – 2x points on travel and dining
- American Express Platinum Card® – 5x points on flights
- Capital One Venture Rewards – 2x miles on all purchases
Cashback cards like Quicksilver by Capital One offer a flat 1.5% cashback on everything, making it a simple and rewarding choice.
Business Credit Cards Without Foreign Transaction Fees
Business owners who travel internationally should consider these cards:
- Ink Business Preferred® – Earn 3x points on travel, shipping, and advertising
- American Express Business Platinum – Premium travel benefits and lounge access
These cards offer expense tracking, travel perks, and fraud protection, making them ideal for international business.
Student Credit Cards with No Foreign Transaction Fees
Students studying abroad should look for a no-annual-fee option with rewards:
- Discover it® Student Cash Back – 5% cashback on rotating categories
- Bank of America Travel Rewards for Students – Unlimited 1.5x points on all purchases
These cards offer an affordable and safe way to spend money while studying abroad.
Premium vs. No-Annual-Fee Credit Cards
Premium cards (like Chase Sapphire Reserve®) offer higher rewards and luxury perks but charge an annual fee. If you don’t travel often, a no-annual-fee card may be a better choice.
When Is an Annual Fee Worth It?
- If you spend $3,000+ on travel yearly
- If you use perks like airport lounges, travel credits, or TSA PreCheck reimbursement
Tips for Using Your No-Foreign-Transaction-Fee Credit Card Abroad
Even with the right credit card, using it smartly while traveling is crucial. Here are some essential tips to avoid common pitfalls and maximize benefits:
1. Avoid Dynamic Currency Conversion (DCC)
Many foreign merchants offer to charge you in your home currency instead of the local one—this is called Dynamic Currency Conversion (DCC). While it seems convenient, it usually comes with higher exchange rates and hidden fees. Always choose to pay in the local currency to get the best exchange rate.
2. Notify Your Bank Before Traveling
Some banks automatically flag international transactions as suspicious and may freeze your account. Before traveling, inform your bank or enable travel notifications through your banking app.
3. Use Contactless Payment When Possible
Many countries now prefer contactless payments over cash. Cards with NFC (Near Field Communication) technology allow you to tap and pay without inserting or swiping. This also reduces the risk of card skimming fraud.
4. Carry a Backup Card
Not all merchants accept every card type. Some may only accept Visa or Mastercard, while others prefer American Express or Discover. Carrying at least two different credit cards ensures you always have a payment method available.
5. Keep Track of Foreign Exchange Rates
Before making a big purchase, check the current exchange rate. You can use apps like XE Currency or Google to track real-time exchange rates and ensure you’re getting a fair deal.
How to Apply for a Credit Card with No Foreign Transaction Fees
If you’ve decided to get a card that waives foreign transaction fees, here’s how to apply:
Step 1: Check Your Credit Score
Most travel and rewards cards require good to excellent credit (FICO score 670+). Check your score using free services like Credit Karma or Experian before applying.
Step 2: Compare Different Cards
Look for cards that offer no foreign transaction fees along with bonus rewards, travel benefits, and fraud protection. Consider your spending habits to pick the right card.
Step 3: Submit an Application
Apply online through the issuer’s website. You’ll need to provide:
- Personal information (name, address, SSN)
- Employment and income details
- Estimated monthly expenses
Step 4: Wait for Approval
Some applications get instant approval, while others take a few days. If approved, you’ll receive your new card in the mail within 7-10 business days.
Step 5: Activate and Use Your Card
Once you receive your card, activate it online or through your bank’s mobile app. Set up fraud alerts and travel notifications before your next trip.
Common Misconceptions About No Foreign Transaction Fee Cards
1. They Are Only for Frequent Travelers
While these cards are great for travelers, they also help anyone who shops from international retailers (e.g., Amazon, AliExpress, or European brands).
2. All No-Foreign-Fee Cards Are the Same
Not true! Some come with better rewards, travel perks, and lower annual fees than others. Always compare before choosing.
3. They Have Hidden Charges
While some cards may have annual fees, the best options offer transparency and no hidden costs beyond what’s stated in the terms.
4. Debit Cards Are a Better Option
While debit cards can be useful, they lack fraud protection and rewards compared to credit cards. Plus, many charge foreign transaction fees as well.
Comparing No Foreign Transaction Fee Cards to Debit Cards
Credit Cards:
✔ No foreign transaction fees (on select cards)
✔ Strong fraud protection
✔ Earn rewards and cashback
✔ Higher spending limits
Debit Cards:
✔ Direct spending from your bank account
✔ No risk of debt accumulation
❌ Fewer rewards and benefits
❌ Higher risk of fraud with fewer protections
For travel and international purchases, a credit card with no foreign transaction fees is the better option.
How These Cards Benefit Digital Nomads and Frequent Travelers
If you work remotely or travel frequently, having the right credit card can save thousands in fees while providing extra perks.
Best No Foreign Fee Cards for Digital Nomads:
- Chase Sapphire Preferred® – Great for earning travel rewards
- Capital One Venture Rewards – Simple, flexible redemption options
- American Express Platinum – Airport lounge access and elite travel perks
For long-term travelers, choosing a card with strong travel insurance, high rewards, and no hidden fees is essential.
FAQs about Credit Cards with No Foreign Transaction Fees
What are no foreign transaction fee credit cards?
No foreign transaction fee credit cards are those that do not charge any additional fees when you make purchases in a currency other than the one your account is based in. These cards are ideal for travelers and international shoppers who want to avoid extra costs that typically range from 1% to 3% per transaction.
Why should I consider a credit card with no foreign transaction fees?
Using a credit card without foreign transaction fees can save you money on purchases made abroad or on international websites. It’s especially beneficial for frequent travelers or those who make regular purchases from overseas businesses, as it eliminates the usual additional charges imposed on international transactions.
Do all credit cards offer no foreign transaction fees?
No, not all credit cards offer this feature. It’s typically found on travel-related credit cards and premium credit cards. You’ll need to check the specific features of each card to see if it includes no foreign transaction fees.
Can I use my no foreign transaction fee credit card anywhere in the world?
Most credit cards with no foreign transaction fees can be used internationally wherever the card’s network (such as Visa, MasterCard, or American Express) is accepted. However, it’s always a good idea to check if your card has any specific restrictions or supported countries before traveling.
Are there other benefits to using no foreign transaction fee cards?
Yes, many cards that do not charge foreign transaction fees also offer additional travel-related benefits such as travel insurance, rewards points on travel spending, and access to airport lounges. These benefits can further enhance the value of the card for travelers.
How do I find the best no foreign transaction fee credit card for me?
To find the best card for your needs, consider your travel habits, the rewards structure, annual fees, and additional benefits like insurance and lounge access. Compare various cards from different issuers to see which offers the best overall value relative to your spending and travel patterns.
Is there a downside to using a credit card with no foreign transaction fees?
The primary downside could be a higher annual fee compared to other credit cards. Some cards also have higher interest rates or require a good to excellent credit score for approval. Weigh these factors against the potential savings on foreign transaction fees to decide if such a card is right for you.
Conclusion
Choosing a credit card with no foreign transaction fees can save you hundreds of dollars annually while providing travel rewards, security, and convenience. Whether you’re a frequent traveler, digital nomad, student abroad, or online shopper, having the right card ensures you get the best exchange rates and avoid unnecessary fees.
Final Recommendations:
✔ If you want the best travel rewards, go for Chase Sapphire Preferred or Capital One Venture Rewards.
✔ If you want a no-annual-fee option, consider Capital One Quicksilver.
✔ If you’re a student, look at Discover it® Student Cash Back.
✔ For business travelers, the American Express Business Platinum is a great choice.
Before applying, compare your spending habits, credit score, and travel needs to find the perfect card for you!
