A credit card conversion fee, more commonly called a foreign transaction fee, is an extra charge by your credit card issuer for processing a transaction with a foreign merchant. It’s usually 1%-3% of what you spend. And while most credit cards do charge a conversion fee, there are a lot of great options that don’t. If you’re planning to travel abroad, it’s a good idea to get a “no foreign transaction fee credit card” in order to avoid an extra charge for paying by card at a foreign merchant.
Here are some of the best credit cards with no conversion fee:
The Chase Sapphire Preferred offers 80,000 bonus points for spending $4,000 in the first 3 months. Plus, you can earn 5 points per $1 spent on travel purchased through Chase, 2 points per $1 on all other travel purchases, 3 points per $1 on dining and online grocery purchases, 3 points per $1 on select streaming services, and 1 point per $1 on all other purchases. The card has a $95 annual fee. It requires at least good credit.
The Citi Premier offers 60,000 points for spending $4,000 in the first 3 months. Plus, you can earn 3 points per $1 spent at restaurants, supermarkets and gas stations, 3 points per $1 on air travel and hotels, and 1 point per $1 on all other purchases. The card has an annual fee of $95. It requires at least good credit.
The Bank of America Travel Rewards for Students offers 25,000 points for spending $1,000 in the first 90 days. In addition, you can earn 3 points per $1 spent on purchases at the Bank of America Travel Center and 1.5 points per $1 spent on all other purchases. The card has a $0 annual fee. You can get approved with limited or no credit.
The Capital One Platinum Secured is one of the few secured cards that can be partially secured, giving you a credit line larger than your security deposit: deposit of $49, $99 or $200 for a $200 spending limit.It has a $0 annual fee. You can get approved with bad credit.
There are some large issuers (such as Capital One), that don’t charge conversion fees on any of their credit cards. So, a card like the Capital One Venture Rewards Credit Card is a great choice as well.