The best credit cards for international travel with no foreign transaction fee
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Key points
- Many popular cards add a 3% foreign transaction fee to every purchase made abroad. On a $3,000 trip that's $90.
- You don't need an annual fee to avoid it: several $0 cards charge no foreign transaction fee.
- Always pay in the local currency when a card terminal abroad offers you a choice.
A foreign transaction fee is a surcharge, usually 3%, that some issuers add to any purchase processed outside the U.S., including online purchases from foreign merchants. It's easy to miss because it shows up as a separate line on your statement.
What the fee costs on a real trip
| Trip spending on the card | 3% fee | Cash back earned at 2% | Net result |
|---|---|---|---|
| $1,500 | $45 | $30 | You lose $15 |
| $3,000 | $90 | $60 | You lose $30 |
| $6,000 | $180 | $120 | You lose $60 |
Even a strong 2% card costs you money abroad if it charges the fee. That's why the right travel card matters more than the rewards rate.
Cards with no foreign transaction fee
- Earn rate
- 3% dining, entertainment, popular streaming and grocery stores; 1% elsewhere
- Foreign transaction fee
- None
- Best for
- Eating out on the road
- Earn rate
- 3x on restaurants, travel, gas, transit, popular streaming and phone plans; 1x elsewhere
- Foreign transaction fee
- None
- Best for
- Broad travel categories with no fee
- Earn rate
- 2 miles per dollar on every purchase
- Foreign transaction fee
- None
- Best for
- Simple flat-rate travel rewards
- Earn rate
- 5x Chase Travel, 3x dining, 2x other travel, 1x elsewhere
- Foreign transaction fee
- None
- Best for
- Travel protections and transfer partners
Four habits that save money abroad
- Choose local currency. If a terminal or ATM offers to charge you in dollars, decline. That's dynamic currency conversion, and its exchange rate is usually much worse than your card network's.
- Bring Visa or Mastercard. They're accepted almost everywhere. American Express acceptance is thinner in many countries.
- Carry a backup card from a different network, stored separately, in case one is lost or blocked.
- Don't use a credit card at ATMs. Cash advances charge fees and start accruing interest immediately. Use a debit card with low ATM fees instead.
Sources
Card terms from Capital One, Wells Fargo and Chase public product pages, checked on the date above. Consumer Financial Protection Bureau guidance on foreign transaction fees.
Frequently asked questions
What is a foreign transaction fee?
A surcharge, usually around 3%, that some card issuers add to purchases processed outside the United States, including online purchases from foreign merchants.
Do I need to tell my bank I'm traveling?
Most major issuers no longer require travel notices, but check your issuer's app. Some still let you add one.
Should I pay in dollars or local currency abroad?
Local currency. Paying in dollars triggers dynamic currency conversion, which usually uses a worse exchange rate.
