Yes, most credit cards with no annual fee do assess a foreign-transaction fee on purchases processed outside the U.S. But foreign fees are far less common among no annual fee cards than the general credit-card population.
More than a third of all no annual fee credit cards can also be classified as no foreign fee credit cards, according to WalletHub’s database of 1,000+ offers. But roughly 90% of all credit cards charge foreign fees.
More and more credit cards are either reducing or removing their foreign fees, as well. That’s why the average foreign-transaction fee has fallen by more than 20% since the beginning of 2011.
But it’s still worth finding a no foreign transaction fee credit card if you plan on traveling abroad or buying something from an international merchant. Doing so will save you about 2% compared to the average credit card, and it will allow you to get the best deal on currency conversion.
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