Consumers who enjoy traveling should know that most standard-issued credit cards charge transaction fees if you use the credit card outside the U.S. And while the fee is generally 1% to 3% of the amount you’re purchasing, it can add up during foreign travel. To avoid fees, explore this list of the best credit cards with no foreign transaction fees.
Quick Look at the Best Credit Cards with No Foreign Transaction Fees
- Best for Large Cash Rewards Within Certain Categories: Capital One SavorOne Cash Rewards Credit Card
- Best for Travel Rewards: Chase Sapphire Preferred Card
- Best for Everyday Travel Perks: Wells Fargo Autograph Card
- Best for Fixed-Rate Rewards: Bank of America Travel Rewards Credit Card
- Best for Everyday Cash Back: Discover it Cash Back
What Are the Best No Foreign Transaction Fee Credit Cards?
Review this list of credit cards with no foreign transaction fees alongside their pros and cons to find the best card based on your unique needs and financial situation.
1. Best for Large Cash Rewards Within Certain Categories: Capital One SavorOne Cash Rewards Credit Card
Consumers who spend most of their budget on groceries, dining and entertainment will find this card the most lucrative as far as rewards go. But when your spending lands in other categories, it’s better to go with a regular rewards credit card that issues a flat rate.
Enjoy up to 10% back in rewards on qualifying purchases. Other purchases earn you 1% back in rewards.
The card has a variable annual percentage rate (APR) of 19.99% to 29.99% and is designed for those with good to excellent credit.
Pros
- No annual fee
- 10% rewards on certain purchases as well as other lucrative cashback opportunities in other grocery, entertainment and dining categories
- $200 cash bonus welcome offer once you spend $500 in your first three months of having the account
- 24-hour travel assistance service
- Double the manufacturer’s warranty on eligible purchases you make with the card
- Price protection that covers the difference between the purchase price and a lower price within 120 days
Cons
- Must have good credit to qualify
- Spending outside the designated categories won’t generate the greatest rewards from the card
- To get the most rewards on hotel and rental car bookings, you must book the accommodations through Capital One Travel
2. Best for Travel Rewards: Chase Sapphire Preferred Card
During the introductory period, you can earn up to 60,000 bonus points, which translates to about $750 in Chase Ultimate Rewards. All you have to do is spend $4,000 in the first three months after opening the account, which isn’t hard when you’re planning foreign travel.
You’ll get five times the rewards on travel, three times on dining and two times on other travel purchases. Plus, enjoy $50 in annual Ultimate Rewards Hotel Credit.
Using your rewards points on travel will help you maximize your money back as the points are more lucrative in travel categories. Plus, take advantage of bonus perks including trip cancelation/interruption insurance, lost luggage insurance and an auto rental collision damage waiver.
Pros
- Lucrative introductory offer
- Bonus travel categories
- Nice additional travel perks, including rental car coverage
- Redeem rewards in various categories as they best suit your needs
Cons
- The card has a $95 annual fee
- You’ll need good or excellent credit
- Reward categories and points are complex
- Few perks outside of travel
3. Best for Everyday Travel Perks: Wells Fargo Autograph Card
You don’t have to leave the country or even your hometown to earn maximum rewards from the Wells Fargo Autograph Card, making it a good option for those who travel less frequently but still want travel rewards. You’ll earn larger perks on gas and electric vehicle charging so that even the travel for your daily commute gets you closer to your dream vacation.
But you’ll also enjoy unique perks, like cell phone protection that helps cover a damaged or stolen phone. The card has no annual fee, which increases the card’s overall value.
Pros
- Three times the points on travel, transit, restaurants, fuel, phone plans, streaming services and electric vehicle charging with one times rewards on everything else
- Introductory offer of up to 30,000 ($300 cash redemption value) bonus points if you spend $1,500 on the card in the first three months
- No annual fee
- Cell phone protection with up to $600 per claim for a damaged or stolen phone so long as you’re paying your phone bill using the card. The perk carries a $25 deductible
Cons
- No bonus perks for using rewards on travel because there are no transfer partners
- The card has good overall perks but travel rewards are not the most lucrative
4. Best for Fixed-rate Rewards: Bank of America Travel Rewards Credit Card
With no annual fee and a simple rewards program that offers perks across the board to take advantage of everyday purchases alongside travel expenses, the Bank of America Travel Rewards Credit Card is one of the best no foreign transaction fee credit cards.
And because the rewards are provided at a fixed rate, you also won’t have to worry about spending them on travel categories in years when your schedule doesn’t permit you to get away as much.
Pros
- More generous intro APR for balance transfers
- Option to boost reward points by becoming a Preferred Rewards member
- Use points in a variety of categories to best fit your lifestyle at that moment
Cons
- Must redeem points for a minimum of $25, which is high compared to competing cards
- Rewards rate is low if you aren’t a Preferred Rewards member
- No additional perks for using rewards on travel compared to competing cards
5. Best for Everyday Cash Back: Discover it Cash Back
While Discover isn’t widely accepted in other countries, it’s still a good card for earning points toward travel purchases and solid cash back for everyday purchases. The introductory offer matches all cash back you earn in the first year with no spending limits or maximum on the rewards.
Discover offers 5% reward categories per quarter with unlimited 1% cash back for all other purchases. You’ll also enjoy perks like protection from your personal information being listed on common people-search sites looking to sell your data.
If you’re looking for credit cards with no international fees and simple rewards to understand and use, you can’t beat a Discover card. Every $1 in cash back is worth $1 in rewards.
Pros
- No annual fee
- Rotating 5% cash back categories offer additional earning opportunities
- Your first late payment fee is waived to offer some buffer in case you just forget or make a mistake
- Strong welcome offer of matching all cash back earned in the first year
Cons
- You have to activate the quarterly rewards categories, which means you could miss out on rewards if you aren’t paying close attention
- Bonus categories may not align with your spending habits
Understanding Foreign Transaction Fees
Credit card companies might charge foreign transaction fees to reduce the amount of money they lose when undergoing the exchange rate process between various currencies. Each financial provider will have varying transaction fees. So even if you don’t sign up for a new card before traveling, you should evaluate which of your existing credit cards has the most favorable terms for international transactions.
Before you rely on your debit card to assist you with getting cash at foreign ATMs while traveling, know that the foreign transaction fees on those withdrawals can exceed the fees your credit card charges.
At first glance, paying 1% to 3% on every transaction might not look too bad. But it can add up as international travel can get quite pricey. So consider the full expense you anticipate your trip costing and calculate whether you’re comfortable with the total added fee you would pay to use your standard credit card. Also consider future travel plans to make the best decision for your financial well-being.
Tips for Maximizing the Benefits of Credit Cards With No International Fees
Once you have a no foreign transaction fee credit card, you’ll want to take several steps to maximize your credit card when traveling and protect your financial well-being. Here are some credit card tips for international travel.
- Choose a widely accepted credit card: Visa and Mastercard are the networks that are the most widely accepted nationwide. While American Express and Discover are accepted at most retailers, their reach is not nearly as large overseas, though they are working to increase their international presence.
- Inform your credit card company you’ll be traveling: Sudden international charges could lead to your credit card company shutting down your card because of suspicious activity. To avoid holds or freezes on your account, review whether you can check a box online or in your mobile app to indicate you’ll be traveling. Or call the number listed on the back of your card.
- Keep a backup card handy: Even if your other credit cards charge transaction fees, you should bring at least one with you for backup. You might lose your primary card or the card might get shut down for suspicious activity, or a merchant might not accept that card type. Regardless, it’s best to have more than one card on hand.
- Travel with some cash: Overseas, some merchants don’t accept credit cards at popular tourist destinations. Having local currency on hand will make your travels easier and less stressful.
- Avoid dynamic currency conversion: While dynamic currency conversion allows you to complete transactions using the U.S. dollar instead of local currency, it will cost you more in the long run. So while it is convenient, it’s also expensive. When you have the choice, opt for local currency transactions.
- Know your card’s travel protections: Many cards that are designed specifically for travel offer protections for lost luggage, flight delays or cancelation, accident insurance and more. Use your credit card for these transactions to ensure you have added protection.
- Check to see whether you have access to airport lounges: Some travel cards also provide exclusive access to airport lounges. Enjoy some quiet respite during your travels as well as complimentary food and drinks in these lounges to make your travels a bit more comfortable.
Maximizing Travel Rewards While Avoiding Foreign Transaction Fees
Many factors contribute to which travel rewards credit card is right for you and not just whether it offers no foreign transaction fees. Weigh the pros and cons of each card and align the rewards to your everyday spending for the greatest benefit.
Frequently Asked Questions
Is no foreign transaction fee worth it?
Applying for a credit card with no foreign transaction fee can be worth it if you travel internationally regularly.
How do you avoid credit card transaction fees abroad?
To avoid credit card transaction fees abroad, review your credit card’s international transaction fees. If your financial providers charge fees, apply for a card with no fees well in advance of your travels.
Which banks charge no foreign transaction fees?
Many banks don’t charge foreign transaction fees, including Capital One, Citibank, Chase, USAA, HSBC, Ally, Chime and PNC.
About Rebekah Brately
Rebekah Brately is an investment writer passionate about helping people learn more about how to grow their wealth. She has more than 12 years of writing experience, focused on technology, travel, family and finance. Her work has been published in Benzinga, Hearst Bay Area, FreightWaves and Dallas Observer publications.