Best Cards With No Foreign Transaction Fee of June 2024

What are foreign transaction fees?

Foreign transaction fees are charges that banks add on credit cards when you buy something in another currency or from a company based outside your country.

Banks add a percentage-based fee on top of the converted amount when you take cash out or spend money in a foreign currency. This also includes transactions processed outside your home country for online purchases. 

With foreign transaction fees, let’s say you take your friends out to dinner and spend $100 in a foreign currency. If your bank charges a 3% foreign transaction fee, that would mean you end up paying $103 altogether.

Banks use foreign transaction fees to cover the costs associated with converting currencies, processing payments across borders and managing the risks of international transactions. It’s something to be aware of when you travel abroad or shop online, as the fees can add up. 

However, some of the best credit cards don’t charge any foreign transaction fees at all. For example, U.S.-issued Capital One cards and Discover cards don’t charge foreign transaction fees.  

How much are foreign transaction fees?

Foreign transaction fees range from 1% to 3%. Let’s say you’re exploring the charming streets of Rome and buy a bougie leather handbag for $500. If your travel credit card levies an international transaction fee of 3%, you pay an extra $15.

Let’s take a look at the typical foreign transaction fees for each issuer:

Pros and cons of no foreign transaction fee credit cards

Who should get a credit card with no foreign transaction fees?

Here’s a breakdown of who benefits most from a no-foreign transaction fee credit card:

1. Frequent travelers. If you’re a jet-setter who frequently spends money abroad, even a few times a year, no foreign transaction fee cards save you a ton of cash. 
2. Global shoppers and diners. Love shopping international brands and trying out every restaurant while on vacation? A no-foreign transaction fee card lets you indulge without stacking up extra charges.
3. Rewards maximizers. Many no-foreign transaction fee cards are travel-focused and offer impressive rewards on travel purchases. These can include airline miles, hotel points, lounge access or general points to redeem for travel. 
4. Anyone who values convenience. These cards simplify travel budgeting by removing the need to keep conversion costs and fee percentages in mind. 

In short, if you value savings, rewards and the convenience of streamlined spending while traveling or shopping abroad, a no foreign transaction fee credit card is a no-brainer.

How to choose the best credit card with no foreign transaction fee

Need help choosing a credit card with no international fee? We’ve got you covered.

International acceptance

Not all cards are created equal when it comes to global acceptance. Visa and Mastercard boast the widest network, covering almost every corner of the world. On the other hand, Discover and American Express might be less readily accepted in some countries. Ensure your chosen card is compatible with the payment systems wherever you visit.

Fees

While a lack of foreign transaction fees is a major win, be sure to consider other costs. Premium travel cards often come with annual fees. Measure the annual fee against the perks to see if they align with your spending habits and travel style. Alternatively, you could opt for a no-annual fee card. Beyond annual fees, be mindful of potential balance transfer and cash advance fees, which typically accrue interest immediately.

Rewards

Maximizing your rewards is one of the biggest advantages of using a rewards credit card. Look for options with generous welcome bonuses that jump-start your points or miles right from the get-go. Do you travel frequently, dine out often or prioritize everyday purchases? Choose a card that rewards you most in your spending sweet spot.

Travel insurance

Many no-foreign transaction fee cards offer built-in travel insurance such as American Express and Chase. This benefit could save you money compared to purchasing separate policies for each trip. Be warned, though, some options deliver more comprehensive protection policies than others, so ensure the limits align with the type of trips you typically take. 

Other travel benefits

Don’t forget to check out additional perks. Airport lounge access, complimentary upgrades and concierge services are often found with airline credit cards. They have the potential to bolster your overall travel experience and add significant value on top of avoiding foreign transaction fees.

How to avoid foreign transaction fees

The best way to avoid pesky foreign transaction fees is to use a credit card that doesn’t charge them at all. Focus on using this card for all eligible purchases while abroad to maximize savings, and consider carrying a backup just in case.

Bonus tip: Have a second no foreign transaction fee card tucked away in case of unexpected situations like a card not being accepted or getting lost.

How to save on credit card fees when traveling abroad

Smart, simple spending habits to help you sidestep additional costs beyond foreign transaction fees:

• Avoid cash advances
• Ensure your card has chip and PIN technology
• Pay using the foreign currency of the country you’re in

Alternatives to credit cards with no foreign transaction fees

Choosing the right credit card is often the most convenient way to dodge fees, but there are other ways to do it. 

Traveler’s check

Prepurchased traveler’s checks function like cash abroad. However, they may be harder to find and are not as widely accepted as cards.

Exchanging to local currency 

Exchange cash before your trip at your bank or a reputable exchange service. It’s good to have some local currency on hand, but cards still typically provide better exchange rates.

Prepaid debit card

Load up a prepaid debit card with funds in the foreign currency to avoid exchange fees, but be aware of potential card fees.