The best Citibank credit cards with no foreign transaction fee are the Costco Credit Card and the Citi Premier. In addition to their $0 foreign fees, these Citibank cards are good for international travel because they offer great ongoing rewards rates.
Best Citibank Credit Cards with No Foreign Transaction Fee
Costco Anywhere Visa® Card by Citi
Citi Premier® Card
Citi® / AAdvantage® Executive World Elite Mastercard®
Citi® / AAdvantage® Platinum Select® World Elite Mastercard®
In addition to using a card with no foreign transaction fee, you’ll want to avoid dynamic currency conversion while you’re abroad. By doing these two things, you could save up to 10% when traveling internationally.
The best way to avoid foreign transaction fees is to use a debit or credit card that waives such fees while traveling abroad. About 25% of the available credit card offers on the market don’t charge foreign transaction fees. Plus, those cards are available to people of all credit levels, so there’s really no reason to pay the extra charge when you travel abroad.… read full answer
1. Get a credit card with no foreign transaction fee.
Foreign transaction fees are charged by credit card companies and the surcharge could add as much as 4% to purchases made outside the U.S. These fees also apply to online purchases processed through international merchants. If a card charges a foreign transaction fee, it will be listed in the card’s terms and conditions.
The 10 largest credit card companies all offer at least some cards without foreign transaction fees. Plus, some issuers don’t charge these fees on any of their credit cards. Using credit cards with no foreign fees rather than cash is also a convenient, inexpensive way to avoid having to convert physical currency while traveling abroad.
2. Understand that foreign fees can be an issue even when you’re not traveling.
You don’t have to be in another country to get hit with a foreign transaction fee. If you do business online or by phone through a merchant based outside of the U.S., make sure you pay for your purchase with a no foreign fee credit card to sidestep the surcharge. If you use a card with a foreign fee, you’ll be charged this fee on top of your transaction, the same as you would if you had made the purchase at a physical location abroad.
3. Have a no foreign fee debit card handy.
You may not be able to use credit cards for all your purchases abroad, so having a debit card will allow you to get cash in the local currency when you need it. Many debit cards also charge foreign transaction fees, though. So, make sure to bring a Visa or Mastercard debit card with no foreign fee when you head out of the country.
4. Avoid converting currency at airport kiosks.
Converting your cash at an airport kiosk outside of the U.S. may be convenient, but that convenience will cost you. Currency conversions at airport-based exchange stations come with extraordinarily high fees and less-than-favorable exchange rates.
Instead, use a no foreign transaction fee credit card for most of your purchases, and a no foreign fee debit card to withdraw physical currency. These options are very convenient, and each allows you to take advantage of low Visa and Mastercard currency conversion rates automatically.
5. Do not accept offers for dynamic currency conversion.
Dynamic currency conversion (DCC) is a practice in which foreign merchants may offer to charge your purchase in U.S. dollars instead of the local currency. You should never accept these offers because if the merchant converts your payment for you, they may set their own high exchange rate to increase their profits.
With that, you know the basics of how to avoid unnecessary costs when spending money internationally. If you already have a credit card that charges foreign transaction fees, there’s not much you can do to avoid them, except for not using the card abroad. Consider applying for a travel credit card with good ongoing rewards and no foreign transaction fees, instead. There are plenty of options to choose from.
The Costco Credit Card does not have a foreign transaction fee. This means that you will not be charged extra for using your card anywhere in the world where Visa is accepted. That would obviously come in handy at the more than 200 Costco stores abroad. Some locations include Canada, the United Kingdom, Japan, South Korea, Mexico, and Taiwan. There’s also no fee when shopping online from foreign merchants.… read full answer
The lack of foreign transaction fees isn’t the only thing that makes the Costco Credit Card a worthwhile global travel companion. This card also gives 4% cash back on eligible gas (up to $7,000 spent per year), 3% back on restaurants and travel, 2% back on Costco and Costco.com purchases, and 1% back on all other purchases.
Your credit card will likely have a foreign transaction fee of around 3% if it is from Chase, PNC, Bank of America, Barclays or U.S. Bank, which charge foreign fees on most (but not all) of their cards. Your credit card will not have a foreign transaction fee if it is from Capital One, Discover, USAA, PenFed or HSBC.… read full answer
Credit Card Issuers That Do Not Charge Foreign Transaction Fees
It’s worth noting that plenty of other credit card issuers charge foreign transaction fees on only some of their cards. Among these issuers, you will find a handful of top-notch credit card offers that don’t charge foreign fees. These cards also offer above-average ongoing rewards, and require good or excellent credit for approval.
Notable Credit Cards With No Foreign Transaction Fees
It’s never a great idea to assume your credit card does not have a foreign transaction fee based on the issuer alone. So before you travel to a foreign country or make an online purchase from an international seller with your credit card, make sure you have one that won’t cost you extra every time you use it.
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